The rate of population expansion in Dubai is not abating; so far there are some 1.4 million people living in the emirate, of which at least 75% are expatriates. By 2020 it is predicted that the population will grow to reach 4 million and even this will not be the end of the growth that the emirate will witness. So, with all these people arriving and all that construction going on to house them, what’s it like living in Dubai?
This is a question that increasing numbers of professionals are asking because they are seeing the very real opportunities that exist in the emirate for people like themselves, but they are concerned about the realities and practicalities of living in such a rapidly expanding country, where the cost of living is reputedly high and the pace of life reputedly quite fast. In this article we’ll take a closer look at what it’s really like living in Dubai at the moment.
Construction Activity
The rate of construction activity in the emirate is developing apace as more developments break ground before all the original developments are even completed! The first mega project that Dubai became famous for, The Palm Jumeirah saw construction begin back in 2001 and only now is it nearing completion. An estimated 20% of the world’s cranes are in Dubai and construction activity continues round the clock. The reality of this is that Dubai is not an attractive place to look at - it is one hell of a mega building site!
In pockets of tranquillity where developments have been completed, where there are no cranes or where there is no construction activity one can momentarily forget about the chaos that exists across the rest of the emirate…but the feeling never lasts because the next time you need to get to a shop, to work, back home or across Dubai City to visit friends, your senses will be assaulted once again by the noise and the sight of non-stop building work. For an outsider looking in to Dubai from the comfort of an already developed nation, the rate at which incredible construction projects are developed in Dubai is impressive and exciting. For a resident of the emirate, the truth of the matter is that living on a seemingly endless building site can be a bit depressing after a while.
Jobs in Dubai
When it comes to jobs in Dubai and employment law, rights, salaries and job opportunities, there’s good and bad news. The good news comes in the form of job availability and salaries – if you’re an IT manager or senior worker you can earn upwards of GBP 90,000, if you’re a family lawyer you can earn in the region of GBP 50,000, if you work in PR your salary will start at around GBP 30,000 for example, and you can earn all of your income tax free. If you’re looking for employment rights or you believe that the right to have protection against discrimination in the workplace on the basis of sex or race is important perhaps, Dubai is not the place for you. There are no such things as trade unions, if you complain or want to strike such activity is illegal and your only protection comes in the form of your employment contract. What this means is that you need to look very closely indeed at the terms and conditions of your contract and ensure that it is fair and something you can feel comfortable with. The best employers in the emirate of course protect their workers anyway with their contracts – but just be aware that you have few rights above and beyond what is directly stipulated in your contract.
In terms of going to live and work in Dubai – if you’re British you can visit the emirate unrestricted, and what the majority of workers do is enter on a visitor’s visa and then sort out their residency and work permits once they are in the emirate with the assistance of their employer. To get a residency permit you will have to take an obligatory HIV and TB test, and if either are returned positive you will be immediately deported. If you’re going to be working for a company that operates outside the free zones in Dubai be careful about your work permit because these companies can have a restriction on your permit that disallows you from working for another company in Dubai for 6 months after you leave their employment. This has caught out expats in the past.
Restrictions on Entering and Leaving Dubai
If you have an Israeli passport you will be refused entry to Dubai, if you have an Israeli stamp in your passport following a visit to Israel you may also be refused entry to Dubai. You may be refused permission to leave the emirate if you owe money to the government in the form of tax or fines perhaps, and what’s more, if you have defaulted on a mortgage, loan or credit card and owe money to a bank in the emirate you may also be refused permission to leave Dubai.
The Cost of Living in Dubai
When it comes to the cost of living there is again good and bad news…the cost of accommodation can be as much as GBP 15,000 a year for a decent rental apartment in a good location and this has to be paid up front, what’s more, if you want to buy a property in Dubai you may have to wait many years for an off plan apartment or villa to be completed or pay top dollar for a resale property. However, if you already own property in Dubai and want to rent it out, the good news is that you can easily achieve yields of between 8 and 11%. Other than accommodation the other high cost outlays you need to be aware of include school fees which are now extortionate at the best schools as expats fight for places. Whilst there is a law restricting the annual rate of school fee inflation to between 16 and 20%, schools find all sorts of ways to add on extras and this has seen annual inflation of up to 80% in school fees. Medical insurance and the cost of healthcare is high – but then the quality you get is exceptional. Basic day to day grocery costs are average, alcohol is expensive and can only be bought in hotel bars and clubs or if you have a license for your own home. Fuel costs are affordable as are vehicle costs when compared to the UK for example, but if the proposed VAT is brought in in Dubai, this could inflate the cost of pretty much everything by an estimated 5%.
Dubai Law
It is illegal for unmarried couples to live together according to the laws of the UAE – but this law is seldom enforced in Dubai with police action, but at the same time, it is certainly a point worth noting. Drink driving and drug taking or possession of narcotics are zero tolerance crimes – and the authorities rate many medicines which we would class as over the counter remedies for basic ailments as illegal drugs – so, the best advice is, don’t take ANY medicines into Dubai with you, only use what you can buy in the emirate. If you need a regular prescription drug, find out in advance of your relocation whether it is allowable in the emirate.
Social Life and Culture
When it comes to things to do, social life and culture in Dubai, you will likely find you’re living in expat world – there is limited social interaction between expats and locals. Most expats get used to this quickly and find that they are either out and about and doing things in groups of expatriates or they are sat at home bored! Long lunches, brunches and dinners are popular, trips to the desert, shopping trips, cinema and sporting event trips are all regular weekend activities. The good thing about Dubai is that there is so much to do – the bad thing is that you have to drive everywhere to do anything and you inevitably get caught up in the nightmare state of the road infrastructure in the emirate as a result!
So, the truth about living in Dubai is that it can be something of a labour of love – there’s good and bad about the emirate and if you personally think the good things outweigh the bad, then you will be able to live in Dubai and love the experience. If on the other hand the thought of living in a restrictive society where it gets too hot, where tempers on the road fray daily, where the cost of everything keeps rising and where your only friends are likely to be transient, maybe Dubai is not all it’s cracked up to be. The choice is certainly very personal.
