NotDave

Hi everyone,

Just signed up here as I have a job offer to teach at a uni in Dubai and having been thorough salary negotiation would like to figure out whether it’s worth moving financially.

Trying to keep it simple, could anyone suggest a datum for salary/cost comparison.

for example, accommodation. If i wanted a 3 bed flat with market rate of around AED 100k then should I be earning around 300k all in for this to make sense.

I am referring to the 1/3 split that was used in UK which said that you should aim to spend a third of your earnings on housing, a third on expenses, a third into savings. Could this work in Dubai?

haven’t seen this mentioned in the discussions so far.

thanks
NotDave

UKMS

I think the reason perhaps you haven’t seen it mentioned is because it doesn’t really work here IMHO.

Better to work out the actual numbers from your own offer and then see if it meets your own personal circumstances/expectations/ goals.

Also how your offer is constructed and how the allowances are paid can impact decisions. An example being housing allowance (if paid), some employers give what appears to be an over generous housing allowance but reduce salary (to pay less end of service), some give you an allowance and pay it regardless of what you spend, some will give an ‘up to’ allowance but only pay the actual cost on the contract.

Hope that helps and if you want to share more detail I’m sure you’ll get some input.

NotDave

My offer is AED 450k per year + medical + 50% school fees. The pay is 50/50 basic/allowances. There’s a relocation pot which will cover our furniture and belongings to be shipped. Nothing else.

I have a wife and 2 high school aged kids. Scool fees are looking like AED 75k total per year each.

we currently live in Malaysia where I am paid much less but accom, schooling, and most meals are provided so we save around £20k per year plus employer contributes into a good private pension. There’s no pension contributions in the Dubai offer.

my wife hasn’t worked for a while, but had wanted to set up her own coffee shop which wasn’t possible in Malaysia but may be in Dubai.

Our financial goals are to maintain the same level of savings, hopefully the Mrs can set up her dream business and that’ll make some money.

You can see why I try to simplify things.

NotDave

UKMS

its never easy to simplify things here

I’ve just done some rough calculations from a starting point of 450k. Allowing for rent at 150k, your savings to remain the same, 50% of the school fees you are left with just over 10k per month to pay for absolutely everything else - transport, food, clothing, utilities, vacations, family activities etc etc 10k will disappear very fast with a family of 4. That’s also assuming that there is no maximum on the school fees.

NotDave

thanks for that. There is no cap on the school fees

is the 10k pm doable at all?

Added info: we would be buying a family car funded by the sale of our current car. We have always been frugal - don’t really eat out or buy things. All of our shopping would be done in supermarkets incl. clothes. Our only
travel is the annual summer vacation back to the UK. Might seem a bit sad but we are the type to go for walks, picnics, play games with the kids.

UKMS

Nothing sad about what you describe, it’s one of the great things here is that there is a lot to do and see that costs very little. However out of that 10k, I would factor 2k per month (across the year) on utilities, this could be +\- depending on choice of property. Also factor activities associated with school for the kids and other extras outside of fees. I can’t help you much estimating this as my kids are long grown up. Food for a family of 4, there is no doubt you can shop cheaply here but it will still cost and it will really eat into your 10k. You haven’t mentioned what the employer gives for annual travel, is it for you only or the whole family ? Running and insuring the car. No pension contributions, are you maintaining NI in the UK ? You obviously have a buffer with your level of savings. I don’t think 10k is impossible but you will really be watching every last fil each month and some months could be extremely tight for a family of 4.

Regarding the coffee shop dream, personally I would leave it as a dream, certainly in Dubai. Coffee shops everywhere of every description and unless you have an idea for something unusual then it would be a huge risk.

NotDave

We get a set of economy class tickets each year, booked by the university. So there’s no cost to us for this.

We are moving to Dubai to be in a more westernised setting, particularly better schooling for the kids as they approach GCSEs

The mrs has taken a back seat professionally and personally to raise the children. Particularly as I travel for work a few times per year. So we may risk some savings if she found something small to run that may fulfil her desire (she had the idea of a “bubble tea van” on a beach).

I stoped paying NI after the initial 12months. I may need to give this some proper thought.

DXBtoDOH

450k income

150k for a 3-bedroom apartment inclusive of utilities. Look for "chiller-free" apartments as the a/c is included in the rent. Very important differential! Greens is a good neighbourhood. Complexes will have pools and it's close enough to two metro stops to allow the kids some freedom on their own and to get to the malls. https://www.propertyfinder.ae/en/ren...1-8628476.html

150k for two school fees at a decent British school. Employer funds half this so it's 75k out of pocket for you.

That leaves you with 225k to fund everything else. 100k set aside for savings reduces this sum to 125k, or 10k a month.

Doable. One car. Rarely eating out and when you do it's cheap and cheerful curry houses in Bur Dubai. Weekends at the beach and camping trips in the desert. Some will find it very tight but if you're used to it you won't mind.

NotDave

Thank you both for your great feedback

Just been looking at silicon gates as it’s close to work and a good school. 3 beds are 90k chiller free, so that changes the equation a bit.

not sure about the quality of the building and wider area, doesn’t seem great.

UKMS

Tells you why they are 90k

NotDave

It may be right for us. We don’t need to live in a glitzy neighbourhood or in the city. Silicon oasis may be quiet and well located for us which is great. However the price may be due to building issues or may be resulting in a particular mix of residents.

I’d like to be able to test out an apartment for a month before taking on the one year commitment. Is this done?

DXBtoDOH

It's on the outskirts of Dubai, although what defines outskirt keeps changing. Knew a few who lived there to save money and money they did save. Apartment quality can vary and won't be different from comparable apartments in the Marina or other popular areas but the location is the discount. The immediate vicinity is fine. There's a villa quadrant and a small shopping centre. If you want a quiet life, you'll get a quiet life.

The one caveat might be your kids. If you lived near a metro stop, it gives them freedom they won't have in DSO. They can hop on the metro and go to the various malls or explore other areas of the city without having to be chauffeured around by mum and dad. Up to you to decide if it's worth the extra 30-40k AED!

UKMS

Im not suggesting you need a glitzy neighbourhood. Silicon Oasis may fit you well.

The most important thing is the building quality and quality of landlord and/or management company wherever you live. If your AC breaks in August and you can’t get it fixed for days on end it’s an issue. It’s also not the mix of residents that’s the problem but activities and behaviour that you may or may not find acceptable especially with a school age family.

An option for a month would be Airbnb (although I’d be surprised if these are on there) if you look at the monthly rent available units on the property sites you may also be lucky. If you simply want to look around there are lots of options for serviced apartments in nearby locations for a month. Generally if a landlord is looking for an annual tenant they won’t be geared up to let you try for a month but I suppose you could ask.

There can be many reasons that a 3 bed apartment is 90k chiller free not all of them bad, but my gut feeling here would be building and maintenance quality, I could easily be wrong.

NotDave

this is a great point and not something I would have considered without you pointing it out.
Really might be worth being near the metro for kids to have some independence.

on the other hand being near to
School and work is more of a time/effort saving daily. Particularly if kids can walk to school and I can get to work in 15mins, which seems possible at DSO

NotDave

thanks for your comments it has given me a lot to consider.