UAE, home to wealthiest expatriates in the world

The largest global survey of expatriates Expat explorer, commissioned by HSBC Bank International, ranked UAE at the fourth place, following Russia, Saudi Arabia and Bahrain.

The businesses in Dubai have the best terms and conditions to be successful, with no VAT on staff and no social benefits. Therefore those who have set up business here, have far more chances of making huge profits, than in other countries of the world.
“The Indian and Pakistani traders are among the wealthiest in Dubai,” said Steve Gregory, Managing Partner, Holborn Assets, a financial Advisory firm.
Expatriates also enjoy a luxurious lifestyle in UAE with more cars (63 percent in UAE in comparison to 29 percent overall), more exotic holidays (57percent in UAE vs 46 percent), larger properties (58percent vs. 50 percent) and domestic help (57percent vs. 37 percent) and lower taxes than in country of origin (94percent).

The wealthiest of all, are the self-employed. The salaries are best in oil and gas industry and in medical industry, Gregory noted.

About 87 percent of those who have entered UAE earn more disposable incomes than in their home countries. About 79 percent of expatriates are saving more in the UAE than in their home countries, in comparison to 61 percent worldwide.

About 73 percent said that their aim to remain expatriates in UAE is driven by career and money prospects.

However, last year has not been too great for the UAE expatriates. About 77 percent agreed that the economic situation has deteriorated over the past year. About 25percent also believe that the career opportunities in the UAE have reduced. About one in ten, who are of the opinion that the economy has not improved, are planning to return home.

But, majority of expatriates in the UAE are continuing to remain optimistic, with 81percent agreeing that there is no direct impact and that they have no plans to return home.

However, despite UAE being home to fourth wealthiest expatriates, the salary cuts post-recession is common.

The survey reveals that expatriates worldwide are repatriating their wealth. Majority of remittances in the UAE are from expatriates living here alone and who are obliged to send money to families at home countries, said Sudhir Kumar Shetty, CEO, Global Operation at UAE Exchange.

Posted on 8/9/2010

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