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Concept of Expats vs. Westerners

Concept of Expats vs. Westerners

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Old Oct 10th 2014, 12:14 pm
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Default Concept of Expats vs. Westerners

Hi All,

I'm now in discussions with ADCO (part of the Abu Dhabi National Oil Company) about a likely employment opportunity and I'd like some help if possible. What I realize is that there are huge differences in the 'official' ADCO packages of Emiratis vs. Expats, with the Expat packages (basic plus allowances) being 'objectively' rather low (to the point of being not attractive) and the Emirati packages being rather generous.

So my question is this:

- Is it possible that when HR extends an offer to a Westerner instead of setting it as per the Expat levels, they more set it as per the Emirati levels? The reason I ask is that given that the vast majority of expats in ADCO are from non-western countries, I'd not be surprised if such a policy was followed. Otherwise, I'd find rather unlikely that a Westerner (with qualifications) would join ADCO (at least with enthusiasm) given the low expat packages.

Lastly, do you know (from personal experience or otherwise) how much the monthly compensation for a Westerner would be (without the housing allowance) for a Grade 16 and a Grade 17 position within ADCO or the ADNOC group ?

Thank you in advance for any help.
Best,

Omega
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Old Oct 10th 2014, 11:33 pm
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Default Re: Concept of Expats vs. Westerners

ADCO /ADNOC will only give Emirati level salaries to Gulf Nationals. It's well known in hue industry to pay locals more. In Oman we used to lose many locals to Gulf oil and gas companies.

Let's look at your statements again: the vast majority of expats in ADCO are from non-western countries; I'd find rather unlikely that a Westerner..... Would join ADCO...... Given the low expat salaries.

You've given yourself the answer right there.

No idea about grade 16/17.
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Old Oct 11th 2014, 8:19 am
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Default Re: Concept of Expats vs. Westerners

Thanks for the prompt reply.

From your experience in Oman or elsewhere, have you heard of exceptions where Westerners have received better than the standard (& low) Expat package and closer to (albeit lower than) the Emirati/GCC package?
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Old Oct 11th 2014, 10:23 am
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Default Re: Concept of Expats vs. Westerners

OK, I'm not in ADCO, ADNOC etc, but I do work in a large UAE semi-govt organisation, and I'd guess our hiring policies are not dissimilar to theirs. Our HR will definitely offer more to a westerner than to a non-westerner expat - they know that if they want to tempt a Brit or American they'll need to pay more than for, say, an Indian. But you'll need to be able to prove why you bring a greater benefit to ADCO than a cheap expat.

What sort of package are they offering you? In many sectors salaries are well down on what they were 5-6 years ago...
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Old Oct 11th 2014, 11:42 am
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Default Re: Concept of Expats vs. Westerners

I haven't received an offer yet (though it should be forthcoming), but I assume that for my (assumed) Grade the offer for non-western expats would be around 35k (plus housing), whereas the equivalent for Emiratis seems to be ~60k (housing again on top).

I know this 60k figure may sound too high (and it's for sure not low) but it's just +20% more than what I currently take (albeit gross) and I feel it's a 'fair' level. And I say 'fair' given that from what I gather, a 'normal' salary to target for a UAE move is a modest increase (e.g. 20%) over current compensation (given that the lack of taxes would also add - significantly - to net pay).

But I welcome thoughts from the 'field'.

Last edited by omega7; Oct 11th 2014 at 11:46 am.
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Old Oct 11th 2014, 1:18 pm
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Default Re: Concept of Expats vs. Westerners

35k plus housing etc is what a mid level experienced non manager western engineer in oil and gas would take home, pretty much across the gulf.
In Oman, locals get paid less eg 25k, plus 500 for housing because the country doesn't have the budget.
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Old Oct 11th 2014, 2:53 pm
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Default Re: Concept of Expats vs. Westerners

Originally Posted by OriginalSunshine
35k plus housing etc is what a mid level experienced non manager western engineer in oil and gas would take home, pretty much across the gulf.
In Oman, locals get paid less eg 25k, plus 500 for housing because the country doesn't have the budget.
According to the pay structure I've seen, the 35k plus housing is indeed a level reserved for expats. However, for the western expats I know, with similar backgrounds to mine, this level is not attractive enough to leave current salary and career prospects for a move to the ME. When Emiratis at similar levels earn ~60k, my hypothesis would be that for a qualified Westerner the Expat offer could get upgraded to a similar, but lower level (e.g. 50k). In other words HR (& and most likely the hiring manager) would try to limit the distance between the Expat pay (reserved mostly for non-westerners) and the Emirate pay. But then again, it's only a hypothesis.
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Old Oct 12th 2014, 12:21 am
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Default Re: Concept of Expats vs. Westerners

Why are you so special that you should get paid more than a non westerner?
Why would HR want to limit the distance between expat and local pay?
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Old Oct 12th 2014, 8:11 am
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Default Re: Concept of Expats vs. Westerners

The original topic is if HR might offer salaries above the regular Expat pay and closer to the Emirati one, to qualified westerners that they'd like to attract. In other words, whether they always stick to the policy of treating all westerners equally to non-westerner expats or whether there is some flexibility.

From what I understand from your previous comment, there is indeed some flexibility, however one would need to make the case of the added value he/she brings, which is a fair and valid point.
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Old Oct 13th 2014, 4:56 am
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Default Re: Concept of Expats vs. Westerners

Originally Posted by omega7
The original topic is if HR might offer salaries above the regular Expat pay and closer to the Emirati one, to qualified westerners that they'd like to attract. In other words, whether they always stick to the policy of treating all westerners equally to non-westerner expats or whether there is some flexibility.

From what I understand from your previous comment, there is indeed some flexibility, however one would need to make the case of the added value he/she brings, which is a fair and valid point.
Let's just be clear:

Emirati - Paid lots.
Western Expat - Paid a bit less.
Non-Western Expat - Paid the worst.

Each level will have it's ranges. If they say 35k then it might be 30-40k is the range / budget for that role. It may be that it's 32-35k.

I suggest you stop worrying about what other people are getting paid and look at what you earn today, what you want to earn on top of that and if the offer from them will be in line with that. If it is, then just take it. If it isn't, don't - someone else will.
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Old Oct 13th 2014, 6:32 am
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Default Re: Concept of Expats vs. Westerners

Originally Posted by Scamp
I suggest you stop worrying about what other people are getting paid and look at what you earn today, what you want to earn on top of that and if the offer from them will be in line with that. If it is, then just take it. If it isn't, don't - someone else will.
I agree with your point - this is the basis of my thinking. However, there is always a range within which one would (be prepared to) settle and take the job, and hence I'm trying (within this range) to maximize the received earnings. From your experience what would constitute "a bit less" in the level of Western Expat pay vs. the Emirati one? e.g. 20%?
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Old Oct 13th 2014, 7:21 am
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Default Re: Concept of Expats vs. Westerners

Originally Posted by omega7
I agree with your point - this is the basis of my thinking. However, there is always a range within which one would (be prepared to) settle and take the job, and hence I'm trying (within this range) to maximize the received earnings. From your experience what would constitute "a bit less" in the level of Western Expat pay vs. the Emirati one? e.g. 20%?
It ranges hugely.

I've worked with Emirati candidates for senior roles where I think the package would be about right for Western guys.

I've also worked with Emirati candidates for low level positions at 10-14k a month.

It's very rare that I'd find someone doing exactly the same role as a local...so don't really know what the salary difference would be.

Your salary range, that's available for you to earn is less than they will get paid. You need to work out what you want / need to make it worthwhile.

EG:

Take current NETT salary.
Deduct housing, car costs.
= (for example) £3,000 per month

So, you need to get cAED 18,000 + Housing + Car + Flights to match the current deal you get.

So....35,000 + Housing + Car + Flights is double bubble.
55,000 + Housing + Car + Flights is triple trouble.


You need to do that maths to know what you want and what will be worth it. You'll end up with a figure and end up not caring what a local gets paid...
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Old Oct 13th 2014, 8:26 am
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Default Re: Concept of Expats vs. Westerners

Originally Posted by Scamp
I've also worked with Emirati candidates for low level positions at 10-14k a month.
really????? I bet they didn't take it.
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Old Oct 13th 2014, 9:29 am
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Default Re: Concept of Expats vs. Westerners

Originally Posted by Scamp
You'll end up with a figure and end up not caring what a local gets paid...
The reason I ask for the pay difference (Emirati vs. Western Expat) is in order to understand (to some extent at least) what HR are willing to pay. While an approach (let's call it bottom-up) would be to take one's current net pay and add a differential for justifying the move to the ME (an approach I also used), I'd also like to assess a top-down approach where one tries to understand how willing they are to compensate a Westerner to a level close to (albeit lower than) the Emirati pay.

Unless I misunderstood something, it seems - from your contribution and the one offered by a colleague above - that such flexibility does exist, whereby HR (and the hiring manager) may get convinced to offer a salary closer to (or for senior positions even equal to) the Emirati level, provided of course they feel that you are worth it.
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Old Oct 13th 2014, 10:35 am
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Default Re: Concept of Expats vs. Westerners

Originally Posted by omega7
The reason I ask for the pay difference (Emirati vs. Western Expat) is in order to understand (to some extent at least) what HR are willing to pay. While an approach (let's call it bottom-up) would be to take one's current net pay and add a differential for justifying the move to the ME (an approach I also used), I'd also like to assess a top-down approach where one tries to understand how willing they are to compensate a Westerner to a level close to (albeit lower than) the Emirati pay.

Unless I misunderstood something, it seems - from your contribution and the one offered by a colleague above - that such flexibility does exist, whereby HR (and the hiring manager) may get convinced to offer a salary closer to (or for senior positions even equal to) the Emirati level, provided of course they feel that you are worth it.
You cannot work on that basis.

I once interviewed a fresh graduate emirati. He was useless and I said no... I was told by HR to not be so silly... we extended an offer of 33k/AED month. He said no.

We then found another sucker (graduate with a few months experience) to take 33k/AED month. He lasted 2 days before going back to his old employer who offered him more and we could not match it. The Indian doing the same job was getting about 10k. The westerner 22k.

There is no 'amount for the job' given by HR - it is 'amount for the passport'.

Also why I do not believe any Emirati would have taken 10k/month... especially when there are emirati receptionists in government on 50k.

Negotiate your rate and be happy with it. Negotiate hard as it is probably the last time you'll see a pay rise while working in the Middle East.
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