Tax-free salaries and a jet-set lifestyle are not enough to keep expats in the United Arab Emirates, according to new research.
While many agree that money and other benefits of living in the UAE are good, the high cost of living is pricing all but the wealthy out of the country.
The population of the UAE is 9.346 million – and around 80% are expats, giving the number of foreigners as 7.47 million.
Out of these, the poll reveals half of expats are thinking about moving to another country, even though 42% have gained financially from living in the UAE, where there is no income tax or capital gains tax,.
The UAE is recognised as one of the leading expat magnet nations in the world with a low population of nationals.
Expensive lifestyle
“The problem is the USE is a great place if you have money but the cost of living makes saving difficult. Renting or buying property is expensive and the lifestyle in general is not cheap,” said a spokesman for YouGov, the firm that carried out the research.
“Financial security for the future is why many come to the UAE, and the high cost of living keeps expats from attaining the money goals they come for, so many wish to leave.”
More than 1,100 expats were quizzed for the survey – and the issue that was of the most concern was housing costs, with 56% ranking this as the factor most influencing their desire to leave the UAE.
Next, a long way behind was the cost of education (13%).
Researchers also asked expats how they managed their money and 56% responded they had difficulty managing on their income.
Money worries
Nearly a quarter said they worried about the rising cost of living and how they will cope if prices continued to increase, while 19% had gripes about high rents, 15% bemoaned the fact that they could not save any money and 12% feared that they might lose their jobs.
Many expats had real financial concerns because they not only had to pay their way in the UAE, but 86% sent money back to their families in other countries.
Around a third of expats managed to save between 5% and 10% of their salary each month, while 25% saved nothing. Only 40% were satisfied with the amount of money they saved.
Nevertheless, despite their concerns about money, three-quarters were happy at work and half had a salary increase during the last 12 months.
