UAE firms pay up to 75% less salary to workers based outside

Many companies in the UAE cut costs and improve their profitability by hiring employees based outside the country and paying them up to 75 percent less than full-time employees within the Emirates.

Recruitment consultants in the UAE said that local firms are hiring remote workers mainly from Asia, the Middle East and South Africa.

According to Hays’ GCC Salary Guide for 2024, a majority of companies (87 per cent) will hire permanent employees this year. However, 19 per cent said they’d hire temporary contract employees, while 16 per cent will get freelancers.

“There’re a lot of companies out there that will actually help you set up an entire remote working team in places where salaries are less than the UAE and train them. Most companies might consider this model as a cheaper alternative in the long run. I have seen this with recruitment agencies, technology companies and fields related to customer service a lot,” said Nicki Wilson, managing director of recruitment consultancy Genie.

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In addition, fields such as acquiring sales leads, technology, data and even performance marketing are increasingly opting for remote work.

According to Mayank Patel, VP of sales for EEMENA and country head of Adecco Middle East, a global HR firm, workplace arrangements such as remote working have taken a slight shift this year, while some employers prefer certain roles to be completely remote, others are shifting back to office or hybrid work models. “In either case, companies prefer their employees to come to the office for certain days of the week while also maintaining work-life balance with hybrid working policy,” he said.

The UAE also offers remote work visas to foreign professionals, which can be applied through the General Directorate of Residency and Foreigners Affairs (GDRFA).

Up to 75% less salary

Wilson added that this saves companies money as salaries in some countries can be as much as 50-75 per cent less than what is paid in the UAE.

“Companies must be aware, though, that some people still prefer to deal with people on the ground, or they can tell if they are being called by, let’s say, a customer service representative from abroad. It can also affect the reputation of a business, so training and quality checking is an absolute essential if this is the route a business is going to take,” she added.

Mayank Patel added that the pay scale for remote employees depends purely on factors such as job capacity, candidate experience, and the company’s wage policy. “If the role is niche, strategic, demands a high level of expertise and technical skills, these individuals are paid even higher than the non-remote employee,” he said.

Key remote work roles

Patel added that remote work is mainly for short-term projects, and some remote roles include very little or no collaboration among the team during project completion.

“Functions such as customer service, consultancy, marketing and communication, creative design, certain sales positions, certain IT roles such as software engineer or data analyst, recruitment, back office administration etc. might have employees working remotely or with hybrid working module.”

Sourcing countries

Patel added that many roles are hired within the country; however, in certain situations where the role is very niche, talent is scarce or if the job can be performed remotely with ease, that’s when companies look for talent outside the country. “Some of the most popular countries where talent is hired remotely include Asia, the Middle East, and North Africa, which have huge potentials of highly skilled talent that can deliver a job remotely.”

Nicki Wilson added that countries that have seen a rise in remote working options include India, CIS countries, South Africa and Sri Lanka. “In addition, there is a lot of tech talent based out of the Netherlands and other Scandinavian countries.”

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