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?
