Larkymarky

Hi all, I'm another newbie with an "is it worth it query". Before you shoot me down, I have done some research, have been over for a flying visit/interview where I tried to increase my research whilst there.

I have a couple of friends in the same industry already in UAE but unlike me they are single so, whilst they are fairly comfortable it's not apples for apples so I'm reaching out for some additional advice.

I have been offered a management role in an aerospace company. The current offer is 41k AED/month (basic + accom + transport). In addition there is a 35k AED education contribution, 45k AED 'settling in' contribution, business class return flights yearly and access to id50 and id90 flight rates. I'm currently negotiating for an improved package and am hopeful of squeezing a bit more out of them.

How does this stack up to support wife and 5 year old child? Live a relatively modest life, odd night out, odd game of golf etc. Ideally would rent out uk home so would arrive debt free. I've researched the biggies and reckon 3 bed in Al Reef or 2 bed apt in Al Muneera could be had for 145k, average schooling cost approx 45k. It's all the rest I'm struggling with...

Comments welcome

Irishbeekeeper

Well, I would say the package sounds ok (not good, just ok) for a small family. But 3 things are expensive in UAE.
1. I am in Dubai so don't know much about the AD property scene but I did hear that in AD one has to pay the years rent 100% in advance in a "one-cheque" deal. Not sure if that is true for all properties but if yes then that would be a major investment from you. Maybe you can talk to your company about paying that for you and then deducting that on a monthly basis from your basic?
2. Education even for a toddler is expensive in a half decent school. 45k per year might just about cover it for now but definitely won't be enough when the child grows up.
3. Health care is very expensive here so make sure everything and I mean everything is covered.

Market is in a slump but the cost of living is going up so make sure your contract is also ironclad as no one wants to come all the way down here and then leave again in 6 months or a year.
Good luck and feel free to ask anything you want to mate.

Larkymarky

Thanks for the response.
The company have already said they will pay the cheque upfront then deduct from salary. They have actually given me a choice of having it in the company name and the pay the landlord directly or having it in my name where they will give me the cheque to pay the landlord and then deduct monthly, I don't really know if there is a benefit to one or the other?

For the contract and medical insurance, I've asked to see both the full contract and health insurance policy as part of the negotiations before I make any decision.

Are there any other major hidden costs I'm missing because when I do the math, I reckon I will have some left over each month? All the cost of living comparison sites suggest there is little difference between UAE and UK city prices, some things cheaper and some more expensive. I'm concerned I'm missing something significant.

Irishbeekeeper

1. Better to have it in your name mate. Sometimes things go south and lets say you need to join another company but like your house and dont want to leave it, so atleast you wont have that hanging over your head all the time.
Another reason is people just looooooooooove beauracracy here. Especially in the facilities provision companies like tv, internet, water and electricity departments etc and lets say you have in issue with them like late payment, complaint or whatever, if the lease (ejari) is in your name then it is very easy to duke it out with them, which you will...from time to time
2. Grocery etc is cheap here and besides the big 3 already mentioned above, otherwise I reckon one can live well here if you dont go out every night or you are not into ukranian / african girls
so if your calculations are covering the big 3 then its safe to say that you are ok.
Do ask your friends already living here which Insurance company they found most easiest to get along with and just insist that you go with the same company.
Also ask your friends about the boot-leg run down to Ajman, which brings the cost down as well. It is definitely an experience that needs to be done every couple of months to truly enjoy UAE haha!
Which reminds me....

Larkymarky

Valid points on the housing contract mate, thanks

The insurance company advice you mention, is that for health insurance?

Irishbeekeeper

more than welcome and yep
I myself dont do insurance so I cannot recommend anyone but by the end of this year it will become mandatory for my company as well so will burn that bridge when I get to it

Larkymarky

Thanks. I'm hoping for an improved offer next week after EID holiday so we will see, maybe get another few comments on here between now and then too. I will most likely have more questions too....

jam25mack

Looks like a reasonable offer to me and shouldn't be too hard to have a decent life on it.

Larkymarky

Thanks for the feedback, much appreciated

archie159

I'd be astonished if you could negotiate over the insurance company. Unless you are joining a "2 men and a dog" company, they'll have a company deal with a particular insurer. Insurance in AD has been mandatory for years, unlike Dubai.
Rental cheques... I know a few AD landlords still hold out for one cheque, but most seem to accept 2-3 at least (I pay in 3). Rents have dropped over the past 6 months, so you are in a better place to negotiate.

Larkymarky

Thanks archie159, I've now been sent the policy and you're correct, it is the companies chosen provider. Looks in order, platinum policy with everything covered except optical.

I managed to get them up to 43k salary with a bit more settling in too. Based on that I think we are going to give it a try

IKnowNothing

£9k a month tax free, you'd be mad not to.