Complete Management Guide for Expats in the UAE

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With nationals from almost 200 different countries residing and working in the UAE, the nation has undoubtedly emerged as the land of diversity. According to a recent survey from HSBC, approximately 75% of the expats residing in the UAE earn better money than the country of their origin. Including the factors mentioned and various other contributing factors UAE is ranked fourth best country in the world to work when it comes to personal finance, economics and prospects of career and profession.

From a quiet port town in the 1970s to a bustling metropolis in 2010, Dubai has made its way as a major business hub that sits in the middle of east and west providing a unique blend of cultures and investment opportunities in Dubai. UAE’s popularity as a career destination has increased the number of expats substantially within the past couple of decades.

Financial planning to accomplish your long and short term goals are extremely vital from the perspective of an expat residing in the UAE. However, if you are still planning to emigrate to the UAE this article will help you to plan, manage and invest in Dubai. UAE is a diverse country culturally, but quite different from countries in the west. Customs, laws and financial guidelines are different from the west which makes it a bit of hassle for expats to plan and execute financial management in the UAE.

To reduce your stress and help you through your journey into the land of investment opportunities: Dubai, today’s thread is a comprehensive guide for financial planning for expats in the UAE. We’ll enlist the most crucial factors to consider if you are planning to emigrate to the UAE or currently residing in the country as an expat.

Property

The majority of the expats prefer using their savings and additional earnings to purchase properties in their native countries. However, expats must remember that it becomes a bit difficult to get a mortgage in your native country if you have domiciled overseas. Expats should always maintain a record of their credit rating and history to apply for a mortgage.

Earlier the UAE had laws for property owners that didn’t allow expats to purchase property in the country. However recently the laws have been amended and expats can now invest in Dubai and the UAE by purchasing and selling the property.

Insurance and Healthcare

Most of the insurance plans and services do not provide coverage overseas. Technically, an insurance plan registered in one country will be void if you emigrate to the UAE or any other country. Alternate insurance arrangements are necessary to provide coverage in your new jurisdiction. Special international plans that provide coverage globally or tailored plans for expats are some of the options to be considered by expats in the UAE.

The healthcare system in the UAE is accessible for expats residing in the country. To avail healthcare services in the UAE, you will have to apply for a health card.  

Bank Accounts

Depending upon your employer and their preferred bank in the region you can open a bank account. Opening a bank account in Dubai or any other emirate will help you to gain access to facilities like home loans, car loans, etc. However, during your stay in the country, your bank accounts might freeze which can cause trouble. Therefore it is important to keep emergency funds in offshore bank accounts. Investing your earning offshore will help you to earn gross interest.

Pension

There is no state approved pension scheme in the UAE. However, some companies offer a pension scheme where an employee pays a certain amount of monthly as a premium from their earnings. While leaving the company the accrued amount we paid which provides financial support for the economically unproductive years of life. Expats should always prefer investments in Dubai like a retirement plan to help them spend their twilight years with peace and comfort.

As an expat, you always have the choice to opt for offshore pension plans, but it is recommended to go for investment in UAE initially followed by retirement plans.

A big advantage of emigrating to the UAE is that you are not supposed to pay any tax on your pension income.

Taxation

The taxation guidelines in the UAE are quite simple for expats. Residing expats are not supposed to pay any taxes. However, as a working expat in the UAE one should always get advice from financial experts to make sure they’re on the right side of the law financially.

Wills

The guidelines for taxation and inheritance are country-specific therefore gaining a sound understanding of all the implications of your residing status in current residency is crucial as it impacts how the will be executed. Expats should get their wills checked to ensure that they are recognized by law in their current jurisdiction. The best suggestion for expats holding assets in different nations is to have a will for every country where they own assets.

In a Nutshell!

Living in today’s era we are blessed with the power and access to knowledge. Before making any financial decision research and analysis is very important. Scan websites, reports, articles, blogs offline or online to ensure you have the correct information.

The UAE has one of the best career opportunities to offer, before making the move aspiring expats should do proper research and analysis to make the right decisions in their journey. Investing in Dubai as an expat can reap huge benefits that might not be available in an individual’s country.

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