Compensation and assignment practices in the United Arab Emirates (UAE)
Article

Compensation and assignment practices in the United Arab Emirates (UAE)

The world of business is constantly changing, and globalization, if not already, is becoming a necessary component to a wide variety of industries. To become and remain competitive, companies must re-think their traditional talent development plans to incorporate international assignments.

Each country and city pose unique challenges relative to the work environment, local and expatriate staffing and total rewards package. However, in the United Arab Emirates (UAE), this challenge can get even more complicated since it is more attractive and common to hire expatriates “expats” than locals.

The UAE is home to around 250,000 British expatriates, the largest Western contingent. The population of US workers is estimated around 40,000 and mainly located in Dubai.

Why do so many organizations in the UAE prefer to hire expats? Many reasons explain the living practices (some of which arise from employer and employee perceptions), while others relate to the policies and the realities of the labor markets both locally and abroad. This paper explores some of the drivers and complexities surrounding this phenomena and what companies may want to consider when structuring both local and expat compensation and benefits – particularly allowances to secure competitive hiring of both.

- Read more about the UAE's practices

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely.  The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.

Kim Wylam
Managing Partner
Risk-based advisory services: strategic partnerships and approaches for gaining assurance in an increasingly complex higher education environment
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Risk-based advisory services: strategic partnerships and approaches for gaining assurance in an increasingly complex higher education environment