RDP80

Hi all,

I have been offered a senior role in tech sales for a global IT organisation based in Dubai. I must say I am trying to fathom out whether its a reasonable deal given the salary component is less than what I earn in the UK, though the overall package is made up of housing, schooling, mobility and an allowance for my 2 kids. My wife would also be giving up her job (not a career for her) here in the UK to join me.

The numbers look like this in AED:

Salary 240K p/a
Housing
Vehicle
Schooling
Child Allowance
Medical Insurance + annual flights home

I've looked at some of the cost of living numbers on the internet, studied this forum, and I think I've got an idea what I "might" be able to save - but I would really appreciate a general opinion from folks on the ground in Dubai, and it would help me immensely in making a more informed decision.

Thanks for your help.

Bahtatboy

You need to look at it from the perspective of disposal income.

If your employer will pay for virtually everything, leaving you only having to pay for food and entertainment, then you could probably live reasonably comfortably only digging into, say, AED6-8k pcm of your salary. You'll also have to factor in holidays and pension. Up to you how much you pay for those.

Then, look at what's left and compare it with how much you are able to save doing what you do now.

Every man has his price, but I wouldn't come out here unless I was at least a couple of grand (sterling) pcm better off.

co durham boy

You have all your basic costs covered in the deal wich is a great starting point , especially the schooling. Alot of people come over to the Gulf and are very poor deals , first and foremost you need your costs covered or a basic salary that covers that cost , it's the same cost to the company.

I do not know much about your industry so i can't comment . First of all get your add ons specified as a cost , i.e housing . Accommodation is at an all time low in Dubai but yo have your family with you so you need to know what you will get for your money.

Take a punt on 300 K AED for the basic and negotiate , they'll know it's maybe your first posting if i'm correct and maybe trying an entry level salary.

Remember , if you don't know your value they definitely won't and there is a lot of hidden costs attached to living here .

Good luck

RDP80

Thanks for the feedback. You're both absolutely right. Know thy worth and move from there methinks.

I'm not terribly enamoured with the basic salary TBH. Plus, the allowances could be changed or withdrawn as well as I understand it -which could be good (ever the optimist) or bad depending on what changes of course. Also I found the schooling allowance only works out to be about half of what seems to be the average cost in Dubai for a UK curriculum junior school. Otherwise, vehicle allowance is circa 40K and housing allowance is in the region of 150K.

What's inflation like in Dubai, and does this typically get factored into most negotiations?

co durham boy

I have no idea about the Schooling as i do not need it , The car allowance comes in about average and the housing allowance is ok , remember for anyone coming to Dubai now looking for rental accommodation it's fantastic , you'll get good value for money for that amount.

I suggest yo post a separate thread about schooling on the forum as you'll get a lot more information from that specific request.
Obviously you want a good school for the kids and i'm told they don't come cheap and it's better to be aware of any hidden cost as there's quite a few of them in Dubai.

Millhouse

Re School fees: depends on how old the saucepan lids are.

For some reason everyone in Dubai has an unnecessarily strong view on this subject. But, for a typical British school, fees start at around 35k AED / year for a 4 year old and rise to about 65k AED for one with spots.

You can pay double this and you can pay half of this. The figures I quote are for a reasonable mainstream British school based in New Dubai. Price is not an indication of quality.

Of course, you also have to pay for uniforms, shoes and maybe the school bus. They are expensive but probably in line with the UK (except there is no ASDA here doing uniforms for a fiver).

flares

Oxbridge rhyming slang

Millhouse

I did my best to try and educate them.

RDP80

Hi guys,

I thought I'd share my results of a bit of research I've done to give me a better idea of the feasibility of moving to Dubai. I'd appreciate any comments and especially your validation of what I've found.

The offer I have, given these numbers, leaves me in the plus..which is good. But, I've also factored in set up costs, which would leave us in the red, as the relocation bonus only covers about a 3rd of this. I'd be curious to know if the numbers in the set up costs sheet are reasonable.

More importantly, based on your experiences is the discretionary figure realistic and worthwhile given, I guess, the relative unpredictability and potential job short-termism for expats living in the Arabian peninsula?

Regarding pensions, I would be setting aside money for both myself and my wife - is the number in the sheet realistic for a conservative pension on retirement?

I have life insurance with the job, my wife doesn't. What would be a ball park figure for life insurance on a female non smoker mid 40s for say 250K USD?

I really hope others find this information useful. Its certainly helped me open my eyes

Many, many thanks again for your help

Millhouse

I'm loving your spreadsheet.

al dente

25,000dh towards your car seems a litle low and VERY low if you're buying two. Look on Dubizzle to get an idea.

Re petrol i have a 80l tank on mine and i spend 550 a month on petrol, that's with the school run and a drive to dubai once a week from AD. DH has a cheap car (35,000 dhs) and his fuel bill (only goes to work ad back) is around 120dhs a month.

RDP80

I did ... I was looking at an old w124 merc (which I could probably maintain easily enough by myself).. I think the idea I had would be to buy a cheap run around for myself and get something more decent for Mrs RDP using a car loan. Thanks nonetheless for your input on petrol costs.

Meow

The allowances cannot be changed or withdrawn provided they are set out in your contract. Do not accept anything verbally, but get it put in your contract as that is what is legally recognised.

As somene else said your provision for cars is low, as is your monthly allowance for mobile phones.

I can't say if that is sufficient provison for retirement planning without knowing more about you and what you have set aside already. Also you want an indication of life cover costs for your wife. What type of policy? I guess term assurance, so what term?

RDP80

Thanks Meow and al dente, Vehicles duly adjusted. I also get a mobile with the job. PM'd you (Meow) more about me in the meantime.

Mogs

I think some of your start up costs are on the low side - white goods and furnishings total only AED 12,000 - depends on what you are taking with you from the UK (have you considered the cost of shipping in your offer ?). e.g. A Dyson costs approx AED 2,000 here. A crappy Ikea sofa costs about AED 2,500 (AED 7,500 for a 3 seater from Pottery Barn for example).

You said your employer paid schooling - so why do you need to pay for the first term schooling or the registration ? They should be your employer's costs and definitely a point to argue with them.

FYI, When I came out a few years ago, relocation allowance I was given of USD 15,000 wasn't enough for a family of 4

Also, family entertainment of only 1,000 per month will not get you much for a family of four (AED 300 - 400 for a meal at TGI's for example). AED 35 for a pint adds up aswell.

Clothes - e.g. Next Dubai prices = UK price converted at 7 then add another 20% - so your clothing budget may be low depending on how many clothes you intend buying.

After school activities you have missed - I would estimate AED 500/term/child.

Social activities can be expensive here too. e.g a round of golf costs approx AED 500 - 800.

Dental bills - make sure they are covered in your medical policy.

Holidays ?