“Two cars were stolen from me in London — there is no crime here”

British families and young workers moving there see Dubai as more than a playground for the rich. Photo: eye35.pix/Alamy Stock Photo

After earning an MBA from one of Europe's most prestigious business schools, Luke hoped to make good money from strategic consulting.

But when the 30-year-old Brit returned to London in looking for work, he was greeted by a job market and an economy that seemed bleak.

As the UK is expected to be the world's worst major economy this year, according to the International Monetary Fund, a slowdown in the global conclusion transactions led to the city's banks cutting thousands of jobs.

«Many companies are worried about the global economic turmoil, are cutting costs and seem to be just wary of offers, especially expensive hires,» says Luke, who asked not to be named to speak more freely.

However, the other region he considered, the Middle East, did not seem to face such problems, with one region in particular standing out: Dubai.

Luke has now taken a job at an international consulting firm with a salary of around £100,000 a year and hopes to work there for a few years, saving money to buy a house at home.

Due to Dubai's lack of income tax and lower cost housing, he also expects to have a lot of fun.

“It seems like there are a lot of opportunities in Dubai right now, and you are taking home a lot more than your salary,” adds Luke. «I want adventure.»

This is the calculation many British workers make today when they decide to move to the Gulf city-state in search of higher wages and better quality. life.

For years, Dubai has been seen as little more than a playground for tourists and the wealthy, its extravagantly tall skyscrapers and huge air-conditioned malls look dull next to Europe's historic old cities.

But today it's expats. they say the city has matured. And some parents now even think it's a better place to work and raise a family than the UK, where the economy is stagnant and taxes are at post-war highs.

3004 The UAE outgrew Great Britain

Including the very rich. Nick Candy, the real estate mogul behind Knightsbridge's luxury One Hyde Park complex, said this week that he was fed up with crime in London and the teaching of controversial transgender issues in schools.

“The flow of capital in Dubai has changed. People say, «I'm fed up with crime in the countries where I live,» he told Bloomberg.

“Some of the values ​​we once cherished in Western countries are different from what we have today, and in fact, who would have thought, the value system is sometimes better in the Middle East than here.

«I'm sorry that's the case and people might not like it, but when little kids are taught transgender and stuff like that in schools, I just don't think it's right.»

Meanwhile, experts, recruiters and institutions also say they are looking for an influx of UK graduates who are tired of London's sky-high property prices and taxes that could eat up nearly half of their monthly salary.

«It's definitely a pullback back to what's happening in the UK,” says Romelle Gumbs of Dubai-based consulting firm Creative Zone. so much pressure.»

«You feel above middle class» 'We are seeing a huge influx of expatriates from all over the world…especially Brits' Photo: Jakub Pozicki/NurPhoto via Getty Images

About 90% of Dubai's population is already made up of expats. The government is trying to turn the city into a cosmopolitan entrepreneurial hub that links East and West, sort of like modern-day Constantinople.

“Since the 1990s, they have sought to portray Dubai as socially liberal, but at the same time politically very conservative and tolerant,” says Ryan Ball, senior analyst for the Middle East and North Africa at RANE.

“A person should not have political opinions when they are in Dubai – that’s a great way to get deported – but otherwise the emirate is trying to create a stable, businesslike and luxurious image. And to a certain extent they succeeded.

“I think everyone feels like they've taken it to the next level when they move to Dubai. If you are middle class, you feel a bit above middle class because many properties are designed to be more luxurious.”

The emirate is also trying to stay out of geopolitical infighting – for example, by refusing to impose sanctions against Russia — and suppresses crime, making it one of the safest cities in the world, he adds.

But unlike in the past, when some businesses thought it was useless, today Dubai's sunny weather, glamorous lifestyle and easy mode is attracting more and more Western enthusiasts.

Official statistics on how many Brits live in Dubai are hard to come by, but at one stage they numbered around 240,000, making them the largest British contingent in the Middle East.

Thousands of them lost their jobs . during the pandemic and returned home. But recruiters, schools and business groups say their numbers have increased over the past 12 months.

“We are seeing a huge influx of expatriates from all over the world, but especially, I think, from Western Europe and very especially the British,” says Nalini Cook, Head of Global Research at ISC Research.

Murtaza Khan, Managing Partner at Immigration Middle East law firm Fragomen attributes the surge to the introduction of several new types of visas, most notably the «digital nomad visa» for remote workers and the «freelancer visa» for the self-employed. that were launched during the pandemic.

They are a game changer because expats no longer need a local sponsor.

For many workers, whether they are bankers, project managers, teachers or nurses, perhaps the biggest temptation is higher wages and no income tax.

According to Philip Rideau, Manpowergroup's regional manager for the Middle East, those Those moving to work in the healthcare sector can get a 20% increase in their salary, and those in finance can get a 30% increase. For some specific positions, the increase is even greater.

3004 Salaries in UK and UAE compared

One senior director of a school business in Dubai says that while a few years ago they were getting hundreds of applications for a single teaching job, now they are getting «thousands» and many of them are disgruntled Brits.

“They are tired of the conditions in English schools, politics, Ofsted, all their income is eaten up by mortgage payments,” the director adds.

A teacher in Dubai can earn a starting salary of £2,750 per month, in addition to housing allowance, furniture allowance, private medical care, school fees for their children and travel expenses. By comparison, London teachers start out at around £2,250 a month, which can be reduced to around £1,700 after taxes and pensions.

Wages in Dubai are often higher, and the absence of income tax affects wages even more.

For example, a CFO earning £70,000 to £100,000 a year in the UK could earn £132,000 to £183,000 in Dubai, according to Gareth El Metturi, market director at recruiting firm Robert Half.

< p> Given the increase in wages and the absence of taxes, this means that the person will be at the top. the end of this group could roughly triple their monthly wages to around £15,000.

“There is something very nice when you receive a salary and it is actually your salary – and it has not been significantly reduced,” says Simrin Chana, head of the legal department of Zurich Insurance in the Middle East, who now lives in Dubai. for almost 10 years.

Ten years ago, the 39-year-old decided there were better opportunities in Dubai as a junior lawyer in London. Like others, she loved the hot weather, the ease of travel and the cosmopolitan lifestyle.

“The city is very international,” she adds. “You don’t feel alone because there are a lot of expats who are doing the same thing, trying to build something.”

3004 UK vs. UAE salary comparison

Wage packages also go further than in London because accommodation costs less. The average cost of an apartment in Dubai is around £21,700 per year or £1,800 per month in February, according to CBRE research.

In comparison, the average rent in London for the first three months of 2023 was £2,500, according to data from Rightmove.

The contrast with the UK economy is also stark. Last year, the economy grew by 7.6%, and by 2033, the country's Sheikh, Mohammed bin Rashid Al Maktoum, wants to double both the size of Dubai's economy and its population.

“They are few. regions around the world that are showing the same level of growth,” says El Metturi.

The World Bank predicts that the UAE economy will grow by another 3.2% in 2023. It will be a significant slowdown, but the contrast with the UK is very large, where the economy is expected to shrink this year.

El Metturi says this discrepancy is often mentioned by job candidates. “Their electricity costs are rising, their salaries are not rising in line with inflation, companies are not paying bonuses and people in the UK can't save that much.”

In the first three months According to Robert Half, in 2023 alone, the number of job applicants in Dubai from the UK rose by a fifth year compared to last year.

Family friendly

What is also notable is that that Dubai has become a family holiday destination. “One thing we're seeing that I haven't seen before is families wanting to relocate, with school-age children, with no defined roles,” says El Metturi.

One couple moved from Manchester with their four and six year olds in January before they applied for a job. The husband worked as a financial director, earning £100,000 a year in the UK.

Four weeks after moving to Dubai, my father found a new job, earning around £144,000 a year. This meant that his after-tax salary more than doubled. His new employer also pays for both children's schooling, a common perk for many Dubai-based companies.

Dubai is becoming a family destination. Credit: Dubai Tourism PR Material

Daniel Goldstein, founder and CEO of Elements, a British talent consultancy, is among the parents who have taken the step. His company has offices in the United States, Singapore, Malaysia, Sweden and since 2021 in Dubai.

The 45-year-old man was vacationing in the city with his son, who was then in the sixth grade. when the UK entered its second pandemic in 2020. They extended their stay while his son signed up for the school remotely, and Goldstein has since become a UAE resident, meaning his income is tax-free. But he says his decision wasn't just about money.

«Sunshine and more outdoor activities were one of my biggest goals when I moved,» he says.

& #34;My son and I always play padel [tennis] together. and I am more into golf.”

Soon his son will join him. “He called me in December and said: “Dad, what am I doing? Cold. Tubes don't work. I can not do anything. London just isn't fun anymore.»

Working families can generally expect lower school fees, as well as maids and nannies.

According to the website Snobe, the average daily tuition for a private school in England is around £3,350 per semester. According to the Edrabia website, Dubai tuition fees ranged from £2,800 to £14,000 per annum in 2019.

The average monthly salary for a nanny received through an agency in 2020 ranged from £760 to £1,300 pounds. , reports Gulf News.

By comparison, a full-time 45-hour week nanny in London could expect to earn between £3,450 and £4,500 in 2021, according to Bubbles.

Those who wish can also live a glamorous life in Dubai, where they will have plenty to do. “I was surprised that weekends are actually very busy,” says Anil Stoker, entrepreneur and founder of fintech firm Kriya Financial, who temporarily moved to Dubai during the pandemic and is now considering returning.

“ You can go to the desert, go hiking, surf and do outdoor activities like desert biking — there is a fantastic bike course — so it had a lot more depth than I expected.»

The lack of crime is another factor that many expats pay attention to. «In London, children are constantly attacked outside of school, but there is no crime here,» says Goldstein.

“You live in these really great communities where crime and safety are not even a concern. My front door is always open and I never lock my car. In Queen's Park [London], two cars were stolen from me near my house.”

Chan's immigrant agrees. “You can leave your phone, your bag anywhere – you will get them back. It really is a place where you feel safe when you go out.»

At the same time, there were more reports of edged weapons in London last year than in any other city, according to data previously released by the National Statistics Office. .

Between October 2021 and June 2022, the number of knife crimes reported by the Metropolitan Police increased from 10,605 to 11,232.

This was also a key deal violation for Candy, real estate mogul married to Australian pop star and actress Holly. Valance

“If you are from China and you want your children to go to university or get an education here, and you read about crimes on our streets and crimes with knives, would I send my daughter to such a place?” the London entrepreneur asked.

Business Boom Holly Valance and Nick Candy are reported to have recently visited Dubai. Credit: Karwai Tang/WireImage

Candy himself reportedly travels to Dubai on a monthly basis for business meetings, sometimes accompanied by his wife and two daughters.

The tycoon's firm, Candy Capital, has entered into a joint venture with the Dubai World Trade Center to develop a «super first-class» property project that will be used for both residential and commercial purposes.

And it's not the only one. With easy regulation, a pleasant lifestyle and generous incentives, the emirate has steadily attracted a growing group of British entrepreneurs and start-ups.

As part of its quest to roll out a red carpet for high-tech businesses, the UAE is offering office support, faster visa processing, easier access to finance, and even exposure to local businesses and regulators, according to Kriya's Stocker.

Katie Holmes, general manager of the UK-based Dubai Business Group, which supports British-owned companies, says there has been a sharp increase in the number of firms looking to set up in Dubai in Dubai.

“It's incredible, to be honest. In May last year, we accepted new members every other day. In January it was every day. It was twice a day in February.

“Now it really feels like a land of opportunity.”

According to Creative Zone, the largest consultancy firm in Dubai, the UK recently surpassed India as a source the largest number of people creating companies in the UAE.

Key factors contributing to the boom include the strengthening of the red Brexit. a tape that some say removes the benefits of being in the UK, as well as the shift from pandemic to telecommuting and the new visas on offer. But firms may also find it easy to convince staff to move.

“The main benefits are zero tax, zero crime and great infrastructure,” says Ilya Kondrashov, chief executive of venture capital fund Quantum Light, who during the crisis caused by Covid, moved to Dubai for permanent residence.

“You know, I don’t find myself traveling anywhere longer than 20 minutes wherever I want to go. In London, I walked from Holland Park to our office in Canary Wharf and it took more than an hour, which is quite strenuous.”

3004 Nationality of founders in Dubai

Entrepreneurs in Dubai only have to pay for a trade license, to get started. They cost AED 6,000 to AED 50,000 (£1,300 to £11,000), and on that basis, they can get a visa for their family and move.

“It's just a level of efficiency,” adds Goldstein. «We set up the whole business for about £5,000.» For every new person they hire from the UK, there is a £3,000 visa fee and the company pays for their health insurance.

VAT is just 5%, while corporate tax will be introduced in June at just 9% — just over a third of the 25% rate in the UK. It will only be paid to businesses that pass a profit threshold expected to be set at AED 375,000 (around £81,000).

Employees can also find the comforts of home if they choose: even Waitrose and Marks & Spencer has outposts in Dubai.

Rollercoaster Capitalism

However, not all things familiar to the British will be welcomed. As in London, the influx of Russian oligarchs into Dubai is fueling property prices to skyrocket.

In the past two years alone, property prices have risen by 50%, says Simon Baker, managing director of Haus & Haus, real estate agent in Dubai.

In the primary market, prices rose by 108%, according to real estate agents Knight Frank.

There are other shortcomings that will also make many think, including the country's poor approach to human rights and an authoritarian legal system.

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This means that foreigners involved in litigation may not necessarily be treated fairly, and filing complaints in the workplace can be riskier than in the West.

Property prices in Dubai have jumped 50% over the past two years. Photo: Getty Images Contributor/Easyturn

“This is not a country where the law reigns,” says Middle East Analyst Bol. “It's like a decree.

“They have laws, but they are applied selectively for political reasons. British expats are generally treated with condescension…but sometimes Emiratis want to set an example.”

And while the emirate has become much more tolerant over the years — such as removing screens in restaurants open to non-Muslims during Ramadan — gays still face discrimination. Same-sex sexual activity is a crime, and same-sex couples cannot hold hands or kiss in public without the risk of prosecution, jail time, and even death.

Women also can't always expect to be treated fairly, while the loss of livelihood for foreign workers can be quick and brutal in the event of an economic upheaval.

«It's a lot like rollercoaster capitalism,» Bol adds. “Now they are on the rise, but there are very few safety nets. And that's important to keep in mind if things go wrong.”

Risk of exodus from the UK

The UK is still a pure magnet for foreign talent, but that doesn't mean a permanent loss of skilled workforce. workers in Dubai should not sound the alarm.

“We still have a lot of very high-level people coming to London,” says Paul Johnson, chief economist at the Institute for Financial Studies.

20 years of high levels of migration to the UK. But of course, if you go back to the 1970s, there was a lot of concern about the brain drain — people going somewhere else.

«Have there been really serious studies on this, I don't I know». I don't know, but it was part of the general sense of national decline.

«But if you live in a world where the smartest and best of you are looking for someone else, even if it's just a small number, that's a bit of an unsettling straw in the wind.»

For Max Marlow, Director of Research to the free market think tank The Adam Smith Institute, the flood of alumni and families to Dubai is a clear consequence of high taxes, skyrocketing inflation, rents and—for families—extortionate childcare costs.

«I&#39 I'm a graduate fresh out of university and I see almost half of my salary going to HMRC, not even counting other things like rent and the cost of maintaining what is really a [poor] standard of living for the country, who seems to think of herself as rich,” he adds.

“It’s easy to come to the conclusion: why should we stay here?”

For Luc, a chartered consultant, this was understandable where it is more profitable. “The UK will always be there for me to return to,” he adds.

“But right now I feel like there are opportunities in Dubai.”