A guide to the United Arab Emirates

Careers

The UAE is an attractive place for many businesses, with a strong banking sector and stable political system. The economy depends on qualified expats, who make up over 80% of the UAE population and help create a dynamic work environment.

English is widely spoken in business, but Arabic is the official language – so you may need some documents translating. Regulations vary from region to region, which can be confusing if you work in more than one part of the country. Most international companies tend to stick with the culture of its home country and a lot of business will be with other expats. Local organisations are often family owned and more traditionally Arabic.

Emiratis value trust above all in business, so it’s a good idea to get to know your colleagues and build relationships. They’re polite, prefer face-to-face meetings and are concerned about others’ feelings, so avoid criticism or bad news. Be prepared to answer questions about your family or wellbeing.

Business structures are hierarchical; decisions are made from the top and it’s important to know who sits where on the corporate ladder.

Business hours are between 7.30am and 9.00am to 5.00pm, Sunday to Thursday, and the summer schedule sometimes includes a three to four-hour break in the afternoon with extended evening hours. Office hours are shortened during Ramadan.

A handshake with your right hand is the usual greeting and placing your right hand on your chest after shaking hands shows respect. If you’re greeting a Muslim person of the opposite sex, wait for them to extend their hand first – a simple bow of the head is acceptable. Always give and receive any gifts with your right hand.

Expat salaries in the UAE are among the highest in the world, with favourable taxes, so it’s no wonder people are drawn to it for work. Although the cost of living is expensive, expat packages often include many of the basic costs or the salaries are high enough to offset it.

Education

Expat children can attend public schools in the UAE, but you’ll be charged fees (unlike locals). This, combined with the teaching being in Arabic, leads most parents to consider international schools.

The school year runs from September to July, with three terms, and the week runs from Sunday to Thursday with hours varying between schools.

Private schools are expensive, if not included in your employment package, which has led to an increase in homeschooling, particularly for expats who don’t intend to stay in the country long.

International schools tend to follow the British or American curricula or the International Baccalaureate, but there are also French, German, Japanese and Indian schools. By law, all children in public and private schools must take UAE Social Studies and Arabic as a second language up to Grade 9. Schools must also offer Islamic Education as a subject, but this is optional for non-Muslims.

Moving money

Putting the right banking arrangements in place is vital for expats around the world. You want to be able to access and transfer money easily, and with a bank you can trust to comply with international regulations. Most people have two banks – one in their home country and one local to where they’re living. But, if your bank has a global network, you may be able to set up an account ahead of your arrival, which gives you time to assess the financial market.

It’s important to understand how foreign exchange works and how fluctuating exchange rates can affect you. When you’re juggling finances in multiple currencies, remember that the currency markets can move quickly and make a big difference to the value of your money.

To help you reduce the risk of fluctuating currency, you could choose a foreign exchange that lets you fix an exchange rate for a fixed period. Then you’ll know exactly how much you need to convert, whatever happens in the market.

Budgeting

When you’re looking to move to a new country, you need to consider how a change in the cost of living could affect your finances. If you’re moving with your job, sometimes your employer may help with expenses, such as accommodation or school fees. Remember to account for setup costs, such as buying furniture and sorting insurance, when you’re thinking about your budget.

Groceries and other household goods are reasonably priced, but clothing and imported products are generally expensive. Eating at Indian, Arabic, Chinese and African restaurants are better value than hotel eateries and bars. Alcohol is expensive, although some hotel bars and restaurants have happy hours.

Costs

Some of our offshore accounts have a monthly fee, such as the International Current Account, whereas others, like the Premier International Account, don’t. Both offer fee free International Payments (correspondent and recipient bank charges may apply) and 24/7 worldwide access. Plus, the Premier also includes worldwide travel insurance for you and your family, which is underwritten by AWP P&C SA and administered by Allianz Assistance, which is a trading name of AWP Assistance UK Ltd. Eligibility criteria, terms and conditions apply.

Financial planning

While it’s going to be a busy time, it’s also worth setting some time aside to review your financial plans, such as whether you want to open any offshore accounts. They offer the convenience of keeping your money in one place so you can stay with the same bank no matter where life takes you.

Your expat status could give you new opportunities that weren’t available to you at home. However, tax rules differ from country to country, so if you’re unsure about your personal tax obligations, you should seek professional advice.

Lloyds Bank International Private Banking is by your side every step of the journey as you start your new life abroad. We offer international knowledge, experience and dedicated expert support to help meet all your financial needs. From savings to international payments and transfers, we can help you navigate the complex world of wealth management away from home.

Security

Offshore accounts are not protected by the Financial Services Compensation Scheme (FSCS), which protects savings up to £85,000 with authorised UK banks and building societies.

However, our accounts are covered by other schemes. The Jersey Bank Depositor Compensation Scheme, the Isle of Man Depositors’ Compensation Scheme and the Guernsey Banking Deposit Compensation Scheme offer protection for eligible deposits of up to £50,000.

Tax

No personal taxation currently exists in the UAE. Laws covering corporate tax exist in all the individual Emirates at a standard rate of 9% but, in practice, taxes are enforced only on the following entities:

• Foreign oil and gas producing companies at rates set forth in confidential government concession agreements.
• Branches of foreign banks at rates fixed by decree or in agreements with the Rulers of the Emirates.

There is no capital gains tax – they are taxed as regular business profits. The UAE does not impose net worth tax or estate and gift tax. There are no social security taxes on foreign nationals – UAE and other Gulf nationals contribute to retirement and pension funds. Value-added tax is at a rate of 5%, although certain items are exempt, and some items qualify for a rate 0%. VAT registration is mandatory for businesses with annual taxable supplies above the 375,000 AED threshold, and voluntary for businesses with annual taxable supplies above the 187,500 AED threshold.

Visitors to the UAE are entitled to VAT refunds for purchases of items being exported with the traveller on their departure if it’s not been used in the UAE.

A foreign national employed continuously for over a year is entitled to gratuity, which may not exceed the remuneration of two years. It’s calculated based on the last basic wage paid to the employee and payable on the termination or expiration of the employment contract.

The tax authority is the Ministry of Finance – see www.mof.gov.ae/en for further information.