Dubai Forums Dubai Expat Forums Working in Dubai

Hi All,

I am from India but currently live in the United States where I work at an hedge fund. Recently my company asked me if I would like to move to Dubai to establish and run our new office there(small one with 2-3 employees). The catch is that it will not be an expat posting and I will have a local contract. I will have to cut-off all my ties to Uncle Sam (apart from the odd visit or so every year) and move...

While I enjoy my life here, I feel that it is a very good oppurtunity careerwise and am giving it a serious thought. I have been to Dubai couple of times and understand what I will be signing up to as far as the social and cultural aspects are concerned. But it is economical aspect that I am not particularly sure of.

My question to you folk is, would a salary of 500K AED per Annum (I am assuming that I will draw the same salary as I do now) with no additional benefits be enough for me (29 year old, single) to lead a "good life"? I will also get a decent bonus which will go directly in to my savings account.

I don't plan on living a flashy life but would like to have a little extra luxury than what I have now. I am looking at a good modern apartment in one of the nicer areas, a nice german car and a decent social life.

Are my expectations reasonable or am I shooting for the stars here?

Thanks in advance for all your replies.

Cheers

You would be realizing about 13,500 AED a month. Not bad, but not good for what you are looking at. For what you want would require a minimum of 20,000 AED a month. Rent is paid annually, so you would have to come up with the first year's rent up front, unless the landlord is willing to take 2 checks (half up front, the balance 6 months later). Factor in furnishing the apartment. Then you have monthly utilities - electric, water, cable, internet costs. The other option is to take a serviced furnished apartment (which will probably be the equivalent of an apartment/furnishing/etc, but won't put you in debt). Go to dubizzle.com and check out areas and rents. Also do a search for serviced furnished apartments.

A German car will run you several thousand on your monthly payment. The problem is that you can start off in Dubai with alot of debt - loan for car, if you don't have the cash to get an apartment, cost of furniture. Then, there could be a bigger problem: if the company doesn't work out and they fold, you will not be able to leave if you have outstanding debt (loans/credit cards), and if you can't pay it you will find yourself in jail. If your income is not taxed, you won't pay any tax up to $90,000 (around that amount). Over that amount then federal tax kicks in as well as your SSI contribution, should you choose to contribute.

A social life can be expensive if you want to go out to dinner and clubs during the week. Good quality clothing is expensive. Food in general is expensive. I really don't know how much you would be able to save monthly, if anything, if you want a better lifestyle.

I think the bigger question is: If the business doesn't take off, would you be able to return to your current position/office? It is a very competitive market out here and if you start up a business without any contacts it will be a definite struggle.

Take a look at the many threads on the forum which may give you more info.

Hope that helps.

Bora Bora wrote:You would be realizing about 13,500 AED a month. Not bad, but not good for what you are looking at. For what you want would require a minimum of 20,000 AED a month. Rent is paid annually, so you would have to come up with the first year's rent up front, unless the landlord is willing to take 2 checks (half up front, the balance 6 months later). Factor in furnishing the apartment. Then you have monthly utilities - electric, water, cable, internet costs. The other option is to take a serviced furnished apartment (which will probably be the equivalent of an apartment/furnishing/etc, but won't put you in debt). Go to dubizzle.com and check out areas and rents. Also do a search for serviced furnished apartments.

A German car will run you several thousand on your monthly payment. The problem is that you can start off in Dubai with alot of debt - loan for car, if you don't have the cash to get an apartment, cost of furniture. Then, there could be a bigger problem: if the company doesn't work out and they fold, you will not be able to leave if you have outstanding debt (loans/credit cards), and if you can't pay it you will find yourself in jail. If your income is not taxed, you won't pay any tax up to $90,000 (around that amount). Over that amount then federal tax kicks in as well as your SSI contribution, should you choose to contribute.

A social life can be expensive if you want to go out to dinner and clubs during the week. Good quality clothing is expensive. Food in general is expensive. I really don't know how much you would be able to save monthly, if anything, if you want a better lifestyle.

I think the bigger question is: If the business doesn't take off, would you be able to return to your current position/office? It is a very competitive market out here and if you start up a business without any contacts it will be a definite struggle.

Take a look at the many threads on the forum which may give you more info.

Hope that helps.

Many thanks for that reply, Bora. But the salary i am expecting is 500,000 AED per year which would work out to be a little more than 41000 AED per month. Also, we have an established business but no presence in the area. So, the struggle will be in growing the business.

41,000 a month is more then you need, then again; it maybe worth it reconsidering the offer. You can certainly purchase a Mercedes, BMW or Audi with your given salary. The property sector back here is a bt sluggish so renting and buying can be much of a hassle. Visit this site to have an insight on how you can expect you villa/apartment to look like for your specified price range- http://dubai.dubizzle.com/. As for posher areas, check out Mirdif, Emirates Hills, Jumeirah, Al Badia, Nadd Al Hamar and Springs. For a decent socail life, you would want to lean towards the Jumeirah side due to the numerous landmarks.

prowheels wrote:41,000 a month is more then you need, then again; it maybe worth it reconsidering the offer. You can certainly purchase a Mercedes, BMW or Audi with your given salary. The property sector back here is a bt sluggish so renting and buying can be much of a hassle. Visit this site to have an insight on how you can expect you villa/apartment to look like for your specified price range- http://dubai.dubizzle.com/. As for posher areas, check out Mirdif, Emirates Hills, Jumeirah, Al Badia, Nadd Al Hamar and Springs. For a decent socail life, you would want to lean towards the Jumeirah side due to the numerous landmarks.

All this info from a 13 year old??? LOL

Mirdif (too far) and the Springs - Not posh!!! Stay away from the Gardens. Besides what you recommend prowheels are areas that are basically villas. For a single guy Dubai Marina or Downtown Dubai would be good choices. JBR is OK which has a promanade that is very active - restaurants, cafes, beach events and a walk across the road brings you to the beach.

41,000 is a very decent income and you can live well and save. I would still recommend leasing a car and a full service furnished apartment for the first few months until you get a feel for Dubai and where you may want to live long term. The fact is, if you are the one setting up the office you can't rent or purchase a vehicle until you have the necessary goverment documentation (resident visa, driver's license).

As I mentioned investment is a very competitive area, so it will be quite a struggle. Even though you will be hired as a local your company, because it is based in the US, will be required to withhold federal tax (mandatory), and SSI and Medicare if you so elect. In the event it is determined that the company is not profitable, say within a 2 year period, can you return to the states and work for the company, or would you be out of a job. Is this a contractual company transfer?

Bora Bora wrote:All this info from a 13 year old??? LOL

Exactly LOL! Or he is just a nerd

--- Tue Mar 20, 2012 5:47 am ---

A 13 year old with nick "prowheels"? Probably into cars or has a garage. Just another nerd

Nucleus , lol... I really aren't that into cars, but I didn't want to waste my time on a username either. I regret that decision now though...

41,000 is extremely good to survive here and save quite a bit.....