Are expats worth it?

27 September 2007

1 minute read

Expat workers in Dubai are becoming prohibitively expensive, according to Mercer Human Resource Consulting. No wonder companies want to employ locals instead.

Mercer's report shows that average salaries for expatriates rose by over six percent last year. Daily allowances rose by over 20% and multinationals now pay an average rate of US$475 a day for executive expatriates on short-term assignments in Dubai (in banking, we suspect the total is a lot higher).

"Much of the increase is due to the enormous hike in accommodation costs - both in hotels and rented property," says Dr. Markus Wiesner, head of Mercer's UAE operations.

To cope with these increases, many multinationals are now giving their expatriate employees cash allowances in lieu of accommodation.

Moreover, in response to salary inflation, companies are now focusing more strongly on the 'total rewards' concept. Bonuses and performance-related pay now represent a higher proportion of the average reward package than was previously the case.

"There is definitely property inflation and some people are having to subsidise accommodation costs and utilities as prices rise," confirms Russell Adam, managing director, GCC at Akamai Financial Markets Executive Search (Dubai) Ltd.

AUTHOReFinancialCareers Gulf

Insider Comment

fa
farid
22 October 2007
with increasing inflation and rise in overall prices, i am certainly looking for options as i see no long term future in dubai. One way of controlling the situation is to start brining down rents as rapidly as increasing them. The situation at the present seems to only be worsening
Reply
Al
Alternative Energy!
22 October 2007
A six year cap on residency for expats will mean that the locals will be thrown back to Stone Age..
Reply
Eq
Equality analyst
15 October 2007
Expatriates bring a higher degree of skills, knowledge and experience to GCC an instant reliable pool of talent needed by the leaders, developers, financial institutions and medical fields operating in the Middle East. GCC countries need confidence and assurance that things will happen to meet their idealict dreams. In many instanced, expat has excel GCC levels of expectations. The cost of living is rising in excess of 22% particularly in the housing markets. Greed is the result of social conditioning and some may draw parallel between wealth, stability, social prowess, self satisfaction. To have or not to have stems to inequalities. I believe that that expat have and will continue to provide a central core of telants needed and their presence have benefited the wealth and social development of the citizens of many in the Mid East. There are signs that these benefits are eroding by the new generation of GCC natives. I agree that if there are restrictions on expats and foreign ownership of assets in GCC. It is only fair that restrictions are imposed on GCC nationals to take up citizenship from countries outside of Mid East and the purchase of foreign assets prohibited.
Reply
Do
Doctor Nothing
10 October 2007
First of all, its the greedy landlords that are responsible for the mess and secondly the fall of the dollar to blame.
And if you think that locals can work even one tenth of what the expats do, you must be living on planet Mars !!! When you need quality you PAY !!!
Reply
Jo
Joe
6 October 2007
For the firt comment, please note the concept of inflation that comes with economic growth. Otherwise, UK landlords would be the most gready in the world and not the Arabs.
The comment by Omer, there are thousdans of gulf students graduating each year from the UK, USA and other places in the develope world and they go back to thier countires after graduation. Many top universities in the world opened campuses in the Gulf. What is needed now is to push the locals to word harder and fostering creativity.
Reply