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The Life Of An Indian In UAE- A Practical View

Posted on 23 August 2008

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I got an email from my brother, about the life of a working individual in the UAE. It was truly an insightful one, and this is how I found inspiration to write this article, which will definitely be of help to all the people who decide to come here for a better life and are attracted by the extra moolah which is offered for jobs in UAE.

UAE is a wonderful place to live and a lovely destination for shoppers. People around the world come here specially to buy gold, which is known for its purity. Surprisingly, it’s also cheap compared to other countries. It’s also a great tourist destination and a melting pot of all cultures and traditions. Emirates airline and the convenient duty free shoppers zone at the Dubai International airport, makes it a major travel hub with flights connecting to almost all the major cities in the world.

The rate of inflation here is above 15%. The average rent for a non-sharing room is 2500 Dirham per month, and with family, it is a cool 3-4k minimum. . If you choose to live in Sharjah or Ajman, deduct 20-30% from the above figures, and add at least 2-5 hours of transportation every day to your workplace in Dubai or Abu Dhabi respectively.

My brother who has been in Dubai since past five years used to multiply his salary by 13 Indian rupees and that forms the main criteria for your decision to work here, think again! Firstly, nowadays you roughly get 12 Indian rupees per Dirham at the max. Secondly, the money is useful only if you manage to save.

That brings me to the main point, Savings!

The average salary of an educated and less experienced (2-3 yrs) person in Dubai is around AED 7k-8k. Most of the subcontinent expatriates who are educated and have 2-3 years of experience fall into this bracket. Out of this, deduct 2500 Dirham’s for your accommodation. Lucky if you are allowed to share your room with another person, then maybe you can save half of this amount. Take out another 900 Dirham’s for your food, depending upon your eating habits you can add another 900 Dirham’s to it if you are a food lover. And if you are living in an accommodation of your own, then deduct another 1000 Dirham’s for electricity and water. Approximately 50% of your salary goes for your basic living amenities. And if you are unlucky not to be provided transport by your company, you will have to shell out another 5-10% of your earnings for that. In effect, 5000 Dirham’s are required for living in the most reasonable fashion! Any decent individual needs that much to survive here. And if you decide to buy a car, or other such luxuries, well manage your calculations yourself. That leaves you with your final savings. But wait, we still have to talk about credit cards, entertainment and education for children. Does that make the picture clear?

The traffic situation is worse and deteriorating further. There is no hope for improvement until the Metro rail project will be completed. Hoping that it finishes by early 2009, the authorities are trying their best with new projects and expansion of current road network, but the results are still to be shown. 4 years ago, it used to take around 1 hour and 15 minutes to travel to Abu Dhabi from Dubai. Now it takes around 2 hours if you are lucky enough not to find traffic, which is very unlikely to happen and sometimes it can take up to 3 hours.

Having said that, I would like to mention that if you are offered a 5 figure salary, then be optimistic as your future can be promising. So next time, before you jump onto this bandwagon, think about it deeply. The quality of life here is extremely good, and you get proper facilities for your money. But then again, if you convert and see, some facilities are expensive too. For example, calling from UAE to India is around $0.65 normally. The rate for the other way round is just $0.23 a min roughly! VOIP is also banned and Internet facilities are good compared to India, but relatively costlier compared to other developed countries.

Finally, I would say that a salary of 8K dirham’s without family is good, but with minimum saving of 4K. Essentially it takes a minimum of 10-12K for a rosy future with family. You will be hard-pressed if you bring your family without earning more than 10K.

That’s my analysis about the life in Dubai or UAE. Having said all this, I would still prefer to work here, since there are no taxes, no pollution, the infrastructure is great (except transport), crime is almost nil, no religious tensions, and no dirty politics.

But remember the bottom line, “DONT convert your salary into rupees… what you need to convert is your savings”

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15 Comments For This Post

  1. Atif Hussain Bangash says:

    Good one man. Its really helpful specially for people who are looking for a career in UAE.

  2. Prateek Sinha says:

    Advice to people who are willing to relocate to UAE with their family –

    Rent is very high especially in Abudhabi. Accomodation is in short supply. For one bedroom independent apartment you might have to shell out AED 100000 Per Anum, Two bedroom is over AED 160000 Per Anum. Therefore its an indirect taxation on you. For a room it might cost you AED 40000 and above. Therefore it is not so rosy as you may imagine. I am not discouraging anybody but these are bitter facts in the current scenario. Therefore keeping this in mind try to bargain as much you can with your employer before accepting the offer.Generally people are unaware of this and when they finally arrive they realize that they were better off in their own country.

    Regards
    Prateek

  3. Hussain says:

    That’s exactly what I had in my mind when I was writing this article. I wanted to extend help by providing as much information as possible to all the Indian’s who wanted to come to UAE for work. Things have changed slightly due to the recent global economic developments. I will be writing another article which will include all the details surrounding the recent developments in the market.

  4. KR says:

    Dhs 2500 – 4000 per month is for a sharing room.

    Depending on the Area in Dubai
    Studio Rent : 55,000 – 70,000 Dhs
    One Bed Room : 70,000 – 85,000 Dhs
    Two Bed Room : 85,000 – 150,000 Dhs

    About the Metro rail, this is under-construction only in Dubai :-(

  5. Hussain says:

    I work in Abu Dhabi and have to change my accomodation. Im unable to find a single room in a sharing apartment for 3,500 Dhs (INR 47,000) I can believe that living in U.A.E. has become so expensive.

  6. mkm gen says:

    come over to singapore. much better here. and, anyway, it much easier to reconcile yourself to live in a plave dominated by the chinese who have been civilised for 4-5000 years than to boorish arabs who never saw civilisation and went straight from being bedouins to being bandits.

  7. kiran says:

    Traffic is the worst part of UAE life.i live in sharjah.It takes max.45 mins to reach my workplace but with the heavy traffic i spend as much as 4 and a half hours daily in car.Now the govt is making efforts to reduce this problem by introducing ferry transport and metro and by limiting the number of people who can apply for a driving lisence.

  8. IT Pro Spore says:

    Hussain: This is a very practical article. I believe the professional who has more than 5 years of experience, he would be happy in UAE.

    mkm gen: Running around from one country to another will not be a good option for professionals. What if you can’t do proper savings in the next 1 year, are you going to give an idea to the same individual, now go to China, Thailand, Vietnam. :-)

    And Yes, if you are going to migrate to Singpaore, Chinese are very much civilized than Indians over here. I totally agree to this point. That’s the reason, I prefer to live and mix around with Chinese rather than Indians (our people), just because I want to experience civilization :)

  9. srinivas says:

    The article is really very good and informative. Iam staying in uae for 3 years. My experience says -
    1. Accomodation is very costly – Single: earlier it use to be 900Dhs with sharing 1 person/room. Now 1700Dhs sharing with 3 in same room. At last its bedspace and sharing bathroom. Family can’t afford in Dubai so they need to go out of city like sharjah where it less expense but travel time is high. Family with 15k will be very difficult to save. again they will share the flat (1/2 bedroom flat) with bachelor or other family.
    2. Car EMI for basic model will be 1200dhs, road fine, salik and parking charges are hidden or additional.
    3. Salaries for indian/asian will be same as western or local people.
    4. We have missed laundry and other expense.
    To sum up I agree one should consider converting only actual saving in rupees, Compromise standard of leaving, practise on doing multiplying any thing by 11 (for atleast 6months to 1 year) and Prepare for traffic.
    Having said this – you can have International exposure, interacting with different people from different country, high apportunity to earn more.

  10. Vijay Khanna says:

    Thanks for the valuable details of staying in the Emirates. This really helps.

  11. Deepak Sharma says:

    Its an interesting topic, but Dubai is one of the best places to live if you can afford it. No doubt it has became very expensive in the last 5-7 years but its all because of its huge success in attracting people from world over, we all understand demand & supply theory. Dubai has been victim of its own success but the good thing is that the authorities do realize it and are taking all the necessary measures in improving the infrastructures, those staying here can see all the new roads, massive interchanges, metro, accommodation, commercial towers etc…work is going on 24×7 to ensure that Dubai provides the best to its residents.

    Every country has taxes and if a few indirectare introduced here, so what? How does one expect the nation to keep on pumping money for the residents who are unsure of themselves staying here for long, and continue looking for greener pastures. Its all individual’s decisions where to stay or settle down, one man’s food cud be other man’s poison. So lets not criticise and assume as said assumption is mother of all screw ups! If Dubai doesn’t want to attract more and more number of people across the globe or grow itself why should it spend billions in infrastructure and introduce free hold properties, develop free zones, buy A380′s, construct several top world’s project etc….???

    Its not easy for every one in present circumstances to accumulate wealth in Dubai, so friends its survival for the fittest, businesses specially services-education, health, energy, FMS support are still in big demand, it still remains the most favourite place in the world for trading.

    UAE is just 35 years young nation and has done remarkably well itself, compare it with the other nations in Asia or central Europe and you will find it for your self the long strides made and the phenomenal growth registered that has all taken place in last 10-15 years only, its all due to its pro active approach.

    I have been here for 14 years and have seen it grow inch by inch and brick by brick. Tourism, hospitality, trade and real estate have been strong sectors and will remain so. The realty sector is undergoing correction which is healthy as several unqualified and unprofessional agents/developers entered in but the authorities were quick to realize the grey areas and they have acted promptly to plug the holes. And now the global recession is affecting the tourism But all this will rebound quickly its a matter of time. its only healthy for prices or businesses to go down in correction made or else its not realistic.

    Life in Europe or States is not all that rosy my friends, its struggle every where but in Dubai its easy to adjust to the Indian culture and western comforts and most importantly the closer proximity to mother land.
    I have established several companies successfully for my my global employer with whom i was for 18 years before venturing in to my own business of real estate, trading and consultancy to set up the businesses in the emirates or risk/security and i am very happy on the out come and results. Should you need my assistance of any sort i can be reached at dubaisharma at [gmail.com|leo://plh/http%3A*3*3gmail%2Ecom/Hr7N?_t=tracking_disc ].
    Cheers and God bless us all ! Lets respect Dubai !!!

    Deepak Sharma
    By Deepak Sharma Dubai Real Estate Specialist, Consultant Realty Investments & Realty Fund Management !!!

  12. vigilnair says:

    A very nice and interesting article.Such articles give people insights before planning to move to such a country.Keep up the good work

  13. Hussain says:

    Thanks Vigilnair for your compliments!

    However, the shape of Dubai’s economy is totally different now. Though as an NRI living in Dubai, I now get much higher return in rupee against Dirham, there is always this thought in my mind that one day I have to return to my own country and I fear that day is going to come soon due to the job losses.

    To be honest, I dont even know whether there are any real job cuts but this is what people talk about all the time these days.

    Car prices have been slashed recently by almost 25% in UAE. There are lot of one way tickets booked from Dubai. Flights coming from other countries to Dubai are having lot of empty seats these days. what does all these signs say?

  14. Rajesh says:

    This article need refreshment. Today is 24th Dec 2010. I came to Abu Dhabi for for 3 month project.
    Living in Abu Dhabi is very costly I must say because I always convert and see (Normal Indian Mind). If anyone is planning to come to UAE Make sure your salary is atleast 15000 Dhiram per month or be ready to sacrifice quality of life here. As everyone said accomdation is a big problem here even today. When I came here I saw lots of sharing accomdation (of course to look for cheap to save money) a common sharing room with family will cost you minimum 3000 (if you are lucky). Else go for bed space. you belive or not I saw many bed space starting from 700 AED to 2500 AED. So you can choose whichever range fits you. I chose something of 1200 AED. Look for proximity of your work because trafic is worse than India these days here. Ok one more thing how to find accomdation. just walk on the road look for some bus stop. you will find lots of advertisement on the glass of bus stop. hopefully you will find one. Next is website (search in google).
    If you are not having travel arrangement pay daily 1 AED at first door of Buses in AbuDhabi and go anywhere untill that bus goes. or you can buy OJRA Pass at Main Bus Stand/Abu Dhabi Mall/Abu Dhabi Co-Operative society/Marina Mall or any other big mall from Transit Counter.(usually at enterace of Malls). Regarding food I say If you can cook it will be good will cost you less, but if you cant cook than keep at least 30 Dhiram for your food expenses. A normal food in India restorant can cost you 8-15 Dhiram. A take away from KFC minimum 14 Dhiram. A burger or sandwich at some bakaries around 5-8 Dhiram. Well this is about bachular life in ABU DHABI.

    A Married Person if want to live in AbuDhabi should have must a studio flat at least which will cost not less then 4000. Food depend upon you eating habit a family of 3 can live in 1500 Dhiram minimum.Then electricity,Water,Internet etc. will cost you around 1000 Dhiram. Well thats the basic things other depend upon you.

    Well that about living in ABU Dhabi.

  15. Hussain says:

    Thanks Rajesh for the comments… I’d written this article in 2008 and what you have written is surely something fresh… Just to let you know I left AbuDhabi in 2009 and since then I have been living in Dubai… though my workplace is still the same in AbuDhabi..

    Will see if I can write another article re people living in Dubai & working in AbuDhabi… afterall its not that bad driving 250KMs each day for work..

    Cheers,

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