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12 | Focus on Dubai
Bank accounts? To remain known in the UK rental properties in Dubai has been strong of population mixture that has to be one of the
by financial institutions and retain your credit recent years. Unfortunately for tenants, this world’s most cosmopolitan, this diversity
limit, many people opt to leave their UK bank has resulted in skyrocketing rents and has put discourages any real ethnic tensions.
accounts open, especially if regular payments accommodation in the central locales of Nonetheless there are pertinent cultural
such as transferring UK pensions or rental Dubai and Abu Dhabi out of reach of many. differences that have been brought into sharp
returns from a UK property, are to be made As such this has left many opting for the more focus of late.
from there. An offshore savings account or reasonable priced localities of Ajman, Sharjah Fuelled with excitement, in the rush to start
offshore bank account may also be beneficial and Ras Al Khaimah. a new life in the UAE, many expats overlook
for long-term savings and for tax planning. Owing to the high cost of renting it’s worth the differences in local laws. It is worth being
Offshore savings can be held in various noting that approximately half of UAE mindful that much of what is tolerated at
worldwide currencies. However you will also residents spend about 30% or more of their home could well be a punishable offence in
need to open a local bank account when you salary on accommodation expenses. Despite the UAE. With penalties ranging from
arrive in Dubai as this is mandatory for salary this, rather than committing to a purchase, it imprisonment to deportation, although a
transfers when you live and work in the UAE. still may be wise to rent for a time, to see how number of couples risk it, officially it is illegal
With a great selection of top international things work out. Plus, the government has for unmarried couples to cohabit.
banks with local product offerings, as well as a now imposed legislation stipulating that any Furthermore, although it is basic common
range of UAE banks, there is plenty of choice rent increase shall not exceed 7% of the sense to adopt business dress when visiting
for expats moving to Dubai. annual lease price, which should offer relief to any government, office or business building,
Handsome remuneration packages are often many. it’s interesting to note that it is actually a
one of the plus points of relocating. And, As with other aspects of life in the UAE, government offence not to assume this attire.
since you’ll be legitimately spared from paying regulations differ to the UK. Unlike in many This is also a country where alcohol must be
tax on your income when you move to Dubai, countries where rent is paid on a monthly hidden in a paper bag when being transported
it’s a saving that can be utilised if you save and basis, in Dubai the entire year’s rent is paid and consumed in designated areas. Bouncing a
invest wisely. Financial advice is widely upfront by post dated cheque. Beyond familiar cheque will invoke a much harsher reaction
available in the UAE, but for reputable and requirements such as a deposit and reference, than an officious letter from the bank – this is
qualified assistance make sure the individual is the basic necessities required by the landlord also illegal!
licensed by the Central Bank of Dubai. in the UAE include; a copy of a residence With high profile cases hitting the world’s
Considering a financial institution with a permit, a no-objection letter from the person’s headlines in recent years of visitors being
global reach will however give you the employer, real estate commission, and a copy jailed for carrying prescription medicines,
capacity to manage your affairs should you of the employer’s trade licence. If a company Dubai’s hardline stance on drugs is also not to
wish to relocate again or repatriate, without is paying the rent on behalf of an individual, a be taken lightly. However, whilst some of the
having to go through the often onerous copy of the person signing the rent cheque’s other laws are not necessarily strictly enforced,
process of setting up foreign accounts. passport will also be sought. it is worth being aware of the various
For those considering retirement abroad, To minimise the risks of using a sensitivities and where the lines are drawn in
it’s advisable to get a pension forecast from disreputable property agent the Dubai day-to-day existence, and to respect the
the Inland Revenue as entitlements vary Property Group at culture and religion of the UAE.
according to the country of residence. Private www.dubaipropertygroup.com contains a list
pensions should be payable worldwide but its of member companies that adhere to the Lifestyle
advisable to check this with your company in group’s code of ethics. Young or old, there’s something for everyone.
order to confirm payment arrangements if The social side of life in the UAE is fantastic
you move. Law & Culture and diverse.
Daily life can be unsettling at first, bearing in Dubai has a penchant for grand projects -
Cost of Living mind that only around a quarter of the offering lush championship golf courses in
Dubai is an expensive city. The cost of living Emirate’s population is ethnically Emirati. In a one of the most arid areas of the planet, and
has spiralled over the past five years owing to
rising house prices and inflation, so this
should be factored in. Living accommodation Money Management
Saver and a Regular Saver. Paul chooses
to transfer as much of his earnings as
is expensive as is private education if you still
have children who are studying. If you are
Case Study
possible into these accounts every month
as an insurance measure, and to avoid
negotiating a ‘package’ with your employers Paul McMillan (36) originally from certain restrictions which can be placed on
before moving out to Dubai, keep in mind Kilmarnock, on the west coast of Scotland, funds held in Dubai bank accounts. He
that the cost of living for a western expat is at has been living in Dubai since August 2008, uses the Web Saver accounts to transfer
least as high as it is in Central London. A working in the oil and gas industry. money into and between the offshore
number of websites offer detailed breakdowns As a Halifax customer for 16 years in the accounts depending on the best exchange
into the cost of living that are an invaluable UK, when he moved to Dubai Paul decided rates at the time, enabling him to save
for planning. to open an offshore account with Halifax effectively and make his money go further.
www.Justlanded.com International in order to manage his The Regular Saver account enables him to
www.Costoflivingdubai.net finances effectively. Such accounts are pay between £100 and £2,000 per month
www.Thatsdubai.com specifically designed to meet the needs of into his account by standing order. Paul
www.Liveworkexplore.com British expatriates who are resident highlights that thanks to the Internet and
abroad. telephone banking, the process of
Property Paul in fact opened four Halifax transferring money between his accounts
Attracting in the region of 800 new residents a International offshore accounts - a sterling in the UK, Dubai, and offshore is
day, equating to 33 an hour, the demand for Web Saver, a dollar Web Saver, a euro Web convenient and simple.
June 2009 Investment International www.investmentinternational.com
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