Dubai – the 2nd best place for expatriates intending to carry on business
The UAE is characterized by the number of factors that attract expatriates from all over the world. The results of the Expat Explorer survey (conducted by the HSBC Group) show that such factors as favourable business climate, good job prospects and high salaries are the most determinant.
The majority of the respondents to the survey asserted that their level of living improved in the UAE.
The current economic situation in the world is distinguished by the general instability of the economy, and changeability of job markets. But the UAE, due to its wide range of business opportunities and a strategically favourable location in the crossroads of the Middle East, remains the most desirable country for expatriates from all over the world.
The opportunities, which are available for people who want to work or to launch business, were decisive when choosing the UAE as one of the top 10 best countries, and Dubai as the 2nd best city in the world for expatriate entrepreneurs.
The responses of 21,950 expatriates from all over the world were analyzed in the eighth HSBC’s Expat Explorer survey (2015). Among them, there are 2,000 expatriates from the UAE. The survey aimed at assessing the conditions of life in the country.
The UAE is on the ninth place among the countries in terms of taking up residence. The only concern, which was mentioned by the expatriates from the UAE, is the high expenses for living and bringing up children. However, it is insignificant taking into account the wonderful job prospects, high wages, full social packages and high standard of living.
The best place for highly demanding entrepreneurs
According to the responses of the expatriate entrepreneurs, the following global financial hubs can be considered as the most favourable cities for launching one own business:
- Singapore – 87%
- Dubai – 86%
- Hong Kong – 85%
- London– 85%
The predominance of these cities can be proved by comparing these data with the global average (56%).
These financial hubs possess a favourable business climate, an advanced infrastructure and a balance in combination of work and life.
The entrepreneurs are interested in carrying on their business in a safe place. A high level of stability of the local economy and a political stability are important factors that were mentioned by 56% and 68% of expatriates from Dubai respectively.
Such favourable conditions were highly estimated by renowned professional financial experts. Khalid Elgibali, Head of Retail Banking & Wealth Management, UAE and MENA, HSBC Bank Middle East Limited said that 9% expatriates launch business in Dubai, and only 4% take this step in other countries. He is convinced that these figures became possible owing to the governmental support of diversification processes and increasing investments. The Government of the UAE provides the entire necessary infrastructure for entrepreneurs.
The UAE is on the 22nd position among the 189 countries in The World Bank’s Ease of Doing Business index. The country has shown its best results in the scopes of tax payment, cross-border trade, issuing the building licenses and property registration.
Career development prospects
According to figures from the International Labour Organization, the current global employment growth accounts for stable 1,4%. However, this index slightly increases in the UAE, as the country remains attractive for the expatriates due to the career development prospects and high wages.
The respondents to the survey indicated that the UAE provides opportunities for career advancement (53%) and skills development (47%).
A vast majority say that their wages increased the UAE. An average salary in the UAE amounts 124,000 US Dollars. It is 20% above than the global average ($104,000 per annum).
Another attractive advantage of the UAE is the world’s best benefits packages. Over half (55%) say that the UAE provides accommodation support in addition to the annual airfare allowances and other benefits (compared with 33% globally).
These social benefits are very important, taking into account the high cost of living. The responses of the survey indicate that the expatriates have to spend more on accommodation and bills (79% and 60% respectively).
The Government of the UAE realizes that high expanses on living became a challenge for expatriates. However, 65% pointed out that their disposable income increased in the UAE. The problem of high expenditures can be solved through reasonable income management.
The Government provides high living standards for expatriates, and 60% of the respondents indicated that they had already changed their lives for better. Thus, the UAE remains the most attractive destination for people who want to improve the quality of life.