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28 March 2024

Better jobs, salaries make UAE a top expat destination, but…

Published
By Shuchita Kapur

Expats in the UAE are among the most content in the world when it comes to satisfaction with the host country, according to a new survey.

The Expat Explorer 2014 survey conducted by HSBC ranks the UAE at No. 7 among the top 34 expat destinations in the world in terms of expat satisfaction with their host economy, and No. 15 overall.

The UAE and the GCC region as a whole rank among the top for better job opportunities and prospects, the survey notes.

According to the HSBC’s Expat Explorer 2014 survey, the region is considered the best when it comes to better job prospects and the financial being that comes along.

The survey, with 9,300 respondents from over 100 countries and 963 people in the UAE, assesses expat attitudes towards their host countries and this year it put the UAE as the 15th preferred expat destination.

The big reason behind this is job prospects and better salaries.

“A significant number of expats move to the Middle East looking for better job prospects and to boost their income. Indeed, the countries where expats are most likely to move abroad for these reasons are all in the Middle East,” reads the survey with UAE featuring prominently in this regional list.

These promising career prospects seem to be a reality, states the survey, as over three-quarters (76 per cent) of expats in the Middle East are in full-time employment and 70 per cent of those living in the region believe that they earn more than they would have in their home country (compared with the global average of 53 per cent).

The global average of expats who moved abroad for better job prospects is 38 per cent and those who moved to boost their earning potential stands at 20 per cent.

These figures go up remarkably higher for countries like the UAE. It’s a decent 60 per cent for the first category in the UAE and 36 per cent for the second one. Other countries that rank marginally better are Qatar with 63 and 44 per cent, respectively.  Saudi is also high on the list.

The majority of expats also recognise the benefits of not having to pay taxes in the UAE, as two-thirds (66 per cent) associate the country with a lower tax system.

While the prospects are good and the pay is promising, these benefits can sometimes come at a cost, with expats finding less time to enjoy their life outside of work, advices HSBC.

According to data from Mercer’s Worldwide Benefit and Employment Guidelines, those working in the UAE get only nine public holidays, which is the least in the region of Middle East and Africa (MEA).

This shows that employees in the UAE seem to be one the hardest working in the world, as they have more working days than many other countries across the globe.

Despite these positive sentiments, expats continue to face significant challenges due to the rising cost of living and expenses related to raising children here.

The HSBC survey also shows that people are struggling to cope with the high cost of living standards.

Indicative of these attitudes, 6 out of 10 expats who participated in the survey stated that they would consider moving away from the UAE because it is too expensive, far higher than the global average of 32 per cent.

Rents and schooling make up a big portion of any household expenditure in the UAE.

Even though many companies in the country provide assistance to its employees, the majority have to pay from their own pocket, especially the school fee.

A high 85 per cent of the respondents said that the overall cost of bringing up a child is higher than their home countries, while 77 per cent stated that they pay more for childcare than they did previously. Education is also often cited as an issue, with 86 per cent stating they spend more than they did previously.

With inflation in the country rising to its highest level in five years this April, driven primarily by rising housing and food costs, it is not surprising that 75 per cent of expats said that they spend more on accommodation and 62 per cent spend more on groceries.

This is expected to rise further, as inflation in the UAE is predicted to reach 2.2 per cent by the end of the year, and hit 2.5 per cent in 2015 according to the IMF.

The report also revealed that the rapid increase in property rental prices is the factor that poses the biggest threat to the financial well-being of expats in the Middle East. This is more often cited in the region (22 per cent), compared to other places like Asia (18 per cent) and Europe (15 per cent). It is also most acutely felt by expats in the UAE (58 per cent), who highlight this issue more than any other country surveyed.

Despite the cost of living, that is plaguing many in the country, robust quality of life is a major positive that attracts people.

Parents recognise UAE as among the top five safest countries to raise children (80 per cent).

In fact, a larger proportion of expats associate the country with higher personal security (66 per cent), compared to the global average of 42 per cent.

This also appears to contribute to the positive perceptions about the quality of life in the country. Over a third (37 per cent) said that this was their main motivation for moving to the UAE, and over half (54 per cent) continue to associate with this sentiment after they arrive here.

(Home page image courtesy Shutterstock)