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Thursday, 17 May 2012 |
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IT Contracting in the United Arab Emirates
Tuesday, 25 February 2003
Economy, Jobs and Tax
The United Arab Emirates was formed shortly after the discovery of huge oil reserves in Abu Dhabi in 1958. More oil discovered in Dubai in 1966 created massive revenues for the Emirates and allowed the development of a modern social and economic infrastructure. The main industries which underpin the country's huge prosperity are still oil and gas, but there are now many jobs in government-sponsored projects set up to diversify the economy and reduce the dependence on oil. This strategy has been particularly successful in Abu Dhabi and in Dubai, the two richest Emirates in the UAE, with IT jobs now available in a broad range of industry sectors including banking, insurance, financial services, telecomms, tourism, consultancy and software development.
Abu Dhabi is the capital of the UAE and the largest of the seven Emirates. The parliamentary buildings are based there as are all the federal institutions, foreign embassies, head offices of large corporations and most of the country's oil companies. Since the government began its economic diversification program, Abu Dhabi has evolved into a major league financial centre and the need for skilled IT professionals has grown. However the demand is still much higher in Dubai where the culture is more liberal and the communities of ex-pat settlers are more established. Alvin Parmar, Research Analyst at MRK Consulting commented 'There is a big preference for Dubai particularly since the opening of the “internet city” developed to attract hi-tech companies into the area.'
Tax-free earnings are obviously a big attraction for IT contractors and according to Bradley Barr of New Technology Recruitment, Dubai vacancies are snapped up quickly. 'Dubai is a popular destination and there is a broad range of IT jobs there now in a diverse range of industries – although the highest paid positions are in the oil industry' he said. Senior IT jobs are well rewarded with salaries for experienced software development managers going up to $150K - $170K but on balance Barr believes that rates in both contract and permanent sectors are on a par with the UK. 'People mistakenly believe that rates are really high in the Middle East, and its not true' he said. Parmar agrees 'Its difficult to make a comparison because many jobs come as a package with accommodation thrown in - and many employers contribute to educational expenses, transport and even life insurance.' The tax situation is different, of course, and this is one of the major attractions for Australians, but according to Barr people should think carefully about this too. 'You can earn tax-free money while you're there, but its not so simple if you want to bring your money back to [Austalia]' he said.
There are also a few legal peculiarities which you will need to bear in mind. Your contract for example may well be presented to you in Arabic as well as English so before you leap in and sign it be prepared to check the fine print in both languages. The Arabic translation is usually taken as the legal default in cases of dispute and there have been examples of the two versions reading differently. Also, make sure that the contract you accept is the one you want as there are laws in the UAE which prevent people from job hopping - if you resign you may receive a 6 month ban.
The Lifestyle
Working hours are generally very different from back home making a big allowance for a midday siesta period. Many companies use a split-shift system working from 8.00 – 13.00 and then from 16.00-19.00 while government offices tend to work from 7.30 – 14.30. Friday is the holy day of the week for Muslims so the weekend is generally on Thursday and Friday, although some companies are now finding it more convenient to close on Saturdays instead of Thursdays to keep more in line with the international working week. During Ramadam, the working day is often reduced to six hours.
Dubai is a more relaxed city than Abu Dhabi and has become a major attraction for European and American settlers. Contrary to popular belief Dubai has a tolerant cosmopolitan society that maintains its Islamic values and culture. The city is dynamic and progressive, with a thriving nightlife including theatres, comedy clubs, bars, restaurants and live music. It also has state-of-the-art communications, huge shopping malls, and modern hospitals. In fact there is a vast list of attractions when it comes to working and living there including all-year-round sunshine, un-crowded clean sandy beaches, a varied nightlife, zero taxation and a practically crime-free environment.
Eating out in Dubai is a popular pastime and the number and variety of restaurants is impressive. You will find Indian, Algerian, Italian, Thai, Vietnamese, and much more all catering to a variety of different budgets. Restaurants tend to open at 6.00pm but will not be busy until about 9.00pm which is when people start to go out in Dubai. Thursday nights tend to be very busy as it is the beginning of the weekend for most people.
As far as health is concerned, Malaria is not considered a risk in the UAE and tap water is safe to drink, but milk is un-pasteurised and should be boiled before drinking. As for medical treatment, private health insurance is essential. Medical facilities are of very high quality but are extremely expensive.
Despite its relatively liberal atmosphere, it must be remembered that Dubai is part of a Muslim country, and certain restrictions will effect you. Alcohol for example is only served within licensed bars and restaurants that are within hotels. Women should take care to dress modestly and men smartly and certain codes of conduct must be respected particularly when being entertained on business. Make sure that prior appointments are made and followed meticulously as evening business entertainment can often be lavish and extravagant. Also, do not be surprised at postponements of meetings or other business events as the Arab's attitude to time is very flexible – they do not believe in the Western concept that 'time is money'.
UAE Links
News
This article originally appeared on the British contractor's website, Contractor UK. It has been edited for an Australian audience.
Eleanor Turton-Hill
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member email contact addresswell done henry, 09/04/2003 05:19:40 PM
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