Jobs in Dubai
If there is one area of the world which perfectly reflects the rise and fall of the worldwide economy over the last decade it has to be Dubai. One of the more popular states of the United Arab Emirates, Dubai became something of a major attraction on the worldwide market as the property sector began to flourish, property investors began to descend on the region and ultimately the local economy blossomed.
However, the ongoing worldwide recession has had a significant impact upon the local economy and the boom times have gone for now with many people concerned as to whether they will ever return. This is a classic boom and bust scenario and while at this moment in time many people are concerned about the future of Dubai and the financial stability of the region, there is no doubt it will come again and it will attract new investment, new businesses and create significant job opportunities in the future.
The Dubai economy
The Dubai economy is centred round tourism, real estate and financial services with the more traditional oil and gas industries now contributing less than 6% of Dubai’s multibillion-dollar economic output. Prior to the ongoing economic problems in the area, and around the world, Dubai was the latest hotspot on the worldwide employment map and early investors in the real estate sector have made massive profits on their investments. But how is it looking now?
Finding a job in Dubai
While a quick look at the popular press would give the impression that Dubai is in a depression this is not actually the case and as with the good times, when the situation was overhyped, the current period of consolidation in Dubai has attracted a number of negative comments and negative headlines around the world. It would be foolish to suggest that employment prospects in Dubai are as good as they were two years ago and due to the fact that the economy is still fairly immature the difference between the boom times and the current bust times is probably more noticeable than in any other economy around the world.
Job prospects in Dubai
As the Dubai economy continued to boom over the last decade, prior to the 2007 worldwide economic crash, there was a massive influx of overseas workers and overseas investors into the region which caused the local economy to overheat and in all honesty the local authorities lost control. The last two years has seen more and more expats returning home after significant job losses in the property, tourism and financial services sectors somewhat reduced the attractions of the region for many people.
However, this is a natural stage of any economic development even if the situation has been somewhat magnified by the ongoing worldwide economic downturn. The doom and gloom merchants will have you believe that the region is now effectively “dead” for the next decade or so but when you consider that many local and international investors have invested billions of dollars into the region, with new branch networks setup and the financial services industry for one on the up, this is still an area which will grow and expand in the future.
It is true to say that finding employment in Dubai at the moment is not as easy as it was two years ago but it is also wrong to suggest that there are no job opportunities in the region.
Searching for employment in Dubai
If you are looking to move to Dubai, whether permanently or temporarily, it is vital that you have an employment opportunity in place before visiting the state as there is a sponsorship system in place for those looking for employment in the region or looking to set up their own business. Your sponsor must be either a person or business in the region, although there are companies who will sponsor you in return for remuneration. In effect your sponsor is responsible for you while you’re in Dubai and there are certain obligations and guarantees required in the event of potential issues or potential problems during your time in Dubai.
It is possible to obtain a 30 day visitor’s visa for Dubai and then attempt to find employment in the region within 30 days but this is a very high risk strategy especially in the current economic environment. After your initial 30 day visa has ended it is possible to extend this, although there will be a charge, or alternatively you can cross the Dubai border into a neighbouring country and then return again on a new visa.
If you have no money, no immediate job prospects and no contacts in the region you are taking a massive risk by relocating yourself to Dubai at any stage of the economic cycle, let alone the current downturn!
Job agencies in Dubai
With more and more expats visiting Dubai for temporary or permanent employment positions, there has been a massive increase in the number of job agencies in the region. It is worthwhile checking out the best agencies in relation to the particular areas in which you are interested although it has to be said that many job agencies in Dubai have been accused of talking up the economy and talking up the prospect of employment in the region to try and attract more and more custom. A simple review of the local press, via the Internet, will show you the current job situation at any one time.
You need to be very aware of job agencies who charge upfront fees and ongoing charges for their assistance because ultimately you could be paying out with no real prospect of an employment position at the end.
Moving to Dubai with your current employer
When we saw the first stage of the increase in economic activity in Dubai it attracted a large number of Western companies to the region which is potentially a gateway to the Middle East. As more and more companies moved to Dubai, setting up branch offices, one of the safest and most structured employment opportunities became available to thousands of expats. The ability to move overseas with their current employer was a godsend for many because they had a ready-made sponsor, good salaries, were well supported by their employer and ultimately had a point of contact if they had any problems.
If possible, moving to Dubai with your current employer could reduce the stress, the paperwork and ultimately cost of moving overseas. However, unfortunately this particular avenue is not as common as it has been in the past because of the economic downturn and the fact that many Western companies are looking to reduce their cost base in the region which has ultimately led to significant job losses.
Labour laws in Dubai are very “hit and miss” and like so many rules, regulations and laws in the region they can and do change on a regular basis often without prior notice. As in many Western economies, the average working day in Dubai is eight hours in length and you would normally expect to work for five days a week. During Ramadan the length of the working day is reduced to 6 hours although this is flexible for international companies with a non-national workforce. There are also the traditional holiday entitlements, public holidays as well as the fact that income in Dubai is tax-free (at least at the moment!).
However, if you have any labour disputes in Dubai the situation is most certainly tilted towards the employer so beware!
As you would expect, the ongoing recession in Dubai has resulted in a massive increase in the number of employment disputes, some malicious and some genuine. As a consequence, it was recently announced that those who take their disputes to the local authorities and lose will be expected to pay the cost of the hearing and will actually be barred from working in Dubai for 12 months. This particular rule change has been introduced because of a growing number of malicious cases and it will impact significantly on the number of people prepared to take their grievances further.
It must be noted that on paper there are various employee protections available in Dubai although unfortunately in the real world there are still many local and international companies willing to flout regulations and introduced their own working practices and working procedures. As more and more companies struggle with cash flow and profitability during the downturn, we are seeing more and more examples of contracts being terminated at very short notice, often without payment of any compensation. We are also seeing instances of full-time employees being pushed onto a commission basis sales program, forced to take unpaid leave or accept lower than statutory level compensation packages to leave their positions.
If you’re in a position where you are forced out of your job you must be aware that losing your sponsor will have a massive impact upon your life in Dubai and could potentially see you removed from the country.
Cost of living in Dubai
The cost of living Dubai has increased dramatically over the last decade as the economic boom times increased wealth in the region and ultimately attracted the attention of more and more companies looking for more and more profitability. However, it has to be said that aside from schooling and housing costs the cost of living in Dubai is comparable in many ways to the Western world. It is the boom time in the property market which has increased the cost of accommodation in the region with a two-bedroom flat likely to cost in excess of AED100,000 per year.
When you also take into account it can cost in excess of AED40,000 per annum to place your child in a private school, where the UK, US or European curriculum is taught, it is easy to see how the cost of living can spiral out of control unless you do your homework and plan ahead.
Local produce in Dubai is of good quality and broadly similar in price to the likes of the UK but if you have a particular taste for imported foods, for example from the UK or another popular expat country, there will obviously be an increase in cost. In simple terms, aside from property and schooling, the cost of living in Dubai is basically down to the type of lifestyle you are after and the type of lifestyle you can afford.
Setting up your own business in Dubai
While just two years ago the banks in Dubai were investing heavily in start-up and fairly immature companies, the situation has changed somewhat over the last 18 to 24 months. The criteria for lending has been tightened, existing finance is being restricted and the opportunities for finance to set up a new business has almost evaporated in some areas of Dubai.
While the opportunity to set up a new business in Dubai may temporarily be unavailable for many it is no different to places such as the UK where the banking system is under pressure and lending to consumers and businesses is very much subdued. However, bank finance in Dubai will return again in due course because ultimately, despite the doom and gloom merchants, this is an area of the world which will return to the growth path and will offer attractive investment opportunities and job prospects in the future.
Conclusion
Prior to the ongoing worldwide recession there is no doubt that Dubai was one of the major hotspots of the world attracting billions of dollars of investment, large remuneration packages and a lifestyle which many people could only dream of. While the salaries available in Dubai obviously depend upon the industry and experience of the employee involved, there is a significant gap between the various industries such as construction, IT and financial services and you need to do your homework before even contemplating a move to the region.
The construction industry is currently on its knees and when you bear in mind this was one of the major growth areas of Dubai it is no surprise to learn there have been significant job losses in this particular field. However, there is a feeling that the property market in Dubai had been overheating and investors had been guilty of a “blue skies” strategy where they could see no wrong and no problems in the future.
The rise and fall of the Dubai economy has attracted a number of mixed comments around the world with many of the doom and gloom merchants suggesting that the region is a busted flush, while others believing it will return in due course. The bottom line is that Dubai is a relatively immature economy, the authorities have not always handled the situation as best they could but ultimately we have seen billions of dollars of investment in the region, the creation of new business sectors which will ultimately support the Dubai economy going forward. Those who have called the end of the boom times in Dubai may be right in the short term but the medium to longer term situation in the region is still very positive and the economy will, in the right conditions, start to grow again.
If you are looking for employment in Dubai it is essential that you do your homework before moving to the region and ultimately you should have an employment position open to you before you move. It is also worthwhile checking the changes in regulations with regards to visas and foreign workers because they have and continue to change on a regular basis, sometimes without any prior notice.
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