Saturday, July 14, 2012

No longer financially attractive...


The idea that Abu Dhabi is a lucrative working environment has taken a few major body blows over the last few years. Housing of course went through the roof in 2008 and is now only just beginning to roll back to acceptable levels. Inflation has been a constant factor especially in the Education sector where school fees have risen at an approved rate of 5% per year annually. This has stretched family budgets considerably. Food and Petrol have crept up steadily.

But the biggest threat is coming from a Government Decree to freeze salaries, bonuses, and annual increments for public sector workers. Decree No. (2) for 2012 from the President of the Executive Council. In the matter of payroll, increments and Bonuses that applied in the governmental entities and the company’s owned entirely by the government. This is indicative of fundamental financial malaise infecting the economies of Dubai and Abu Dhabi. At a time when the UAE is earning more from oil than ever before it is still strapped for cash, such has been the effect the bailing out of local failures and the massive hit from investments decimated in the American and European financial crises.
It is not permissible to top up salaries with extra part-time work,even the local neighbourhood car wash labour force are regularly chased to stop their supplementary income (only official car wash companies are allowed to wash cars!).  Taxes are not far away. Apart from the 10% + 6% you get stung with in hotels and hotel restaurants, there are many other hidden taxes. Resident’s parking permits, liquor licenses, emirates’ ID cards, visa medical checks, visa renewals, and there is talk of a VAT in the not too distant future.  So what you've got now is all that it will be, and maybe less than what you thought... Can you live with it?