Financial stability outweighs rising costs for expatriates in UAE

Dubai - The economic and political stability in the UAE continues to attract career-orientated expats

The UAE stands out globally for financial rewards offered to expats with nearly all resident employees, who took part in a survey, admitting that they receive benefits as part of their employment contracts, far exceeding the global average of 33 per cent.
The economic and political stability in the UAE continues to attract career-orientated expats to the country in comparison to other markets globally, according to HSBC's Expat Explorer 2016 survey.
The report said despite complex macroeconomic conditions and rising prices, people recognise the UAE for the financial benefits it provides, along with the safety and high quality of life for families despite rising costs, particularly in terms of children's education.
"Given these sentiments, the country was ranked 12th out of 45 markets around the world by expats as a destination to live and work, while Singapore, New Zealand and Canada were chosen as the top three markets globally."
The survey examined the responses of nearly 27,000 expats from across the world, and 3,092 in the UAE, to assess their views towards life in their host countries.
The UAE was highlighted by expats as a safe haven, with 78 per cent selecting it for being more politically stable than their home countries. This sentiment far exceeds the global average of 51 per cent, HSBC said.
Nearly 57 per cent of the UAE expats are confident about the local economy, however, this represents a four per cent drop in the number of UAE-based expats that expressed the same attitude in 2015. "Nonetheless, sentiments here are the highest in the Middle East, and are above the global average of 52 per cent, which can be attributed to the challenging macroeconomic environment across the world today."
The UAE also continues to be recognised for starting a business (53 per cent) and advancing a career (54 per cent), sentiments that rose from last year and exceed the global average of 43 per cent and 38 per cent, respectively. Tied in with this trend, the UAE is also among the top three destinations for people looking to find a purpose in their careers (20 per cent). Meanwhile, two-thirds (66 per cent) of expats state they earn more in comparison to their home countries, and this is evidenced by respondents in the UAE reporting an average salary that is about 14 per cent higher than the global average.
Kunal Malani, head of Customer Value Management, Mena, Retail Banking and Wealth Management, HSBC Middle East, said it was no surprise that the UAE continues to be ranked highly for the financial opportunities it provides expats from around the world, as this has been a consistent trend in the past few years of the survey.
"Whether it's the higher earning potential and tax-free income, or the world-class infrastructure available for entrepreneurs, the country has steadily been growing as a beacon for career-driven expatriates."
The also singled out Dubai among four cities globally - along with Hong Kong, Zurich and Shanghai - for the financial benefits it offers residents working here. Nearly 77 per cent receive healthcare benefits in the Emirate - the highest proportion in the world - compared to the global average of 51 per cent, and this can be attributed to the government's efforts towards making it mandatory for employers to provide health insurance.
Almost two-thirds of residents in the UAE said that their disposable income has risen since moving from their home countries, ahead of the global average of 56 per cent, while a similar proportion (62 per cent) say that they are able to save more here.
Another important factor attracting expats to the UAE, 61 per cent believe that their quality of life has improved since moving, compared to the global average of 52 per cent. However, costs are a rising concern, particularly in terms of children's education. Nearly 88 per cent say that it is more expensive to raise a child here than in their home country, while 91 per cent say that education costs have risen. At the same time, expats recognise the benefits, with 66 per cent saying their children's quality of life is better here, along with 74 per cent saying they feel safer in the UAE than their home countries, compared to 52 per cent globally.
- issacjohn@khaleejtimes.com