Brandy Scott’s Post

Dubai has become the costliest city in the Middle East for international employees, rising three places to rank 15th globally. However, sources are confirming that salaries are staying stagnant and / or reducing. How has this changed your value proposition to prospective candidates who were previously moving just for financial reasons? #employeevalueproposition #compensationandbenefits #hrconsultancy #visiblehr

🌍 Migrant Labor and Low Wages: Is Dubai's Service Sector Fairly Rewarding Its Workforce? 💸 Dubai’s vibrant hospitality and service sectors owe much of their success to a large expatriate workforce. But what impact does this reliance on migrant labor have on wages, job security, and workers’ rights? The truth might surprise you. 🧐 In Dubai, nearly 90% of the workforce is composed of expatriates, particularly in service roles like waitstaff, cleaners, and retail employees. Many of these workers come from countries with lower income standards, lured by the opportunity to work in one of the world’s most prosperous cities. But the abundance of available labor has created a competitive market that allows companies to keep wages low. This supply-demand imbalance results in monthly wages for entry-level service jobs often starting as low as AED 1,000 - 1,500. 📉 Job Security and Bargaining Power: Most migrant workers are on limited contracts, giving employers greater control over job retention and termination. Since visas and residency status are often tied to employment, workers face restricted bargaining power; a request for better pay or working conditions can lead to termination and, ultimately, repatriation. This dynamic limits workers' ability to advocate for fair wages and benefits. 🛑 Long-Term Effects on the Sector: While low wages may provide short-term financial gains for companies, the sustainability of this approach is questionable. A workforce that feels undervalued and insecure is unlikely to maintain long-term loyalty or high performance. For Dubai to continue thriving as a global destination, ensuring fair wages and stable conditions for all workers will be essential. It’s time for a conversation on fair treatment, better wages, and sustainable practices in Dubai’s service sector! 💬👇 #DubaiWorkforce #MigrantLabor #FairWages #ServiceIndustry #LaborRights #EconomicEquity #ExpatLife #SustainableGrowth #DubaiHospitality

💼 Why Are Wages Stuck in Dubai’s Hospitality Industry? Uncovering the Economic Forces Behind the Stagnation! 💼 Dubai’s hospitality industry is a powerhouse, attracting millions of tourists each year and generating substantial revenue. But despite the industry’s rapid growth, wages for essential staff like waiters and cleaners have remained frustratingly stagnant. What’s holding back salaries from keeping pace with the city’s progress? Let’s dive into the economic factors at play. 📉 1. Supply & Demand Imbalance: Dubai’s hospitality sector relies heavily on expatriate workers, creating an abundant supply of low-cost labor. With high competition for these jobs, there’s little pressure on employers to raise wages, keeping salaries low and often below the rising cost of living. 🏙️ 2. Rising Operational Costs: Hotels and restaurants face increasing costs tied to premium real estate, utilities, and marketing in a highly competitive market. To maintain profit margins, many companies prioritize cutting operational costs – often at the expense of wage increases for frontline workers. 3. Reliance on Temporary Contracts: Short-term employment contracts are common in the UAE’s hospitality industry, enabling employers to replace staff more easily without long-term wage commitments. While this offers flexibility, it reduces job stability and opportunities for pay raises. 4. Lack of Collective Bargaining: Unlike in many other regions, Dubai’s labor market has limited collective bargaining or unionization, restricting workers’ ability to negotiate better pay and benefits. 5. Currency Stability vs. Inflation: While the UAE Dirham’s stability is beneficial for foreign investments, it doesn’t shield low-wage workers from rising costs in essentials like housing, transportation, and food. As a result, the “real wage” value for many hospitality employees has effectively decreased over time. 📊 Addressing wage stagnation will require policy interventions, stronger worker protections, and a shift in industry practices to prioritize fair wages. Let's raise awareness and push for a more equitable hospitality sector in Dubai! ✊💬 #DubaiEconomy #HospitalityIndustry #WageStagnation #LaborRights #CostOfLiving #FairWages #EconomicTrends #EmployeeWellbeing #SustainableGrowth #HospitalityWorkers

As the global cost of living continues to rise, companies in the UAE and beyond are adapting their compensation strategies to attract and retain top talent. Here's what you need to know about the evolving landscape of expat salaries: - Index-based salary models are gaining traction in UAE. Many employers are now using international cost-of-living indexes to set fair and competitive salaries. This approach provides clarity for both employers and employees. - It's not just about the base salary. Companies are getting creative with perks and incentives to stand out in the global talent market. Think beyond the paycheck and consider the total package. - Location matters more than ever. Factors like quality of life, safety, and infrastructure are becoming key considerations for expats. Highlight these aspects when recruiting international talent. - Transparency is key. Candidates appreciate clear information about their potential earnings and savings. Be upfront about how you calculate compensation. - Stay flexible. While index-based models are useful, remember that each situation is unique. Be prepared to negotiate and adjust based on individual circumstances. - Look beyond immediate costs. Consider long-term factors like career growth opportunities and global connectivity when evaluating job offers or locations. - Keep an eye on global trends. Cities like Dubai are climbing the ranks of most expensive places for expats. Stay informed about these shifts to remain competitive. Hong Kong and Singapore figured on top of the list in Mercer’s annual cost of living city ranking for 2024. Dubai emerged as the costliest city in the Middle East for international employees, ranking 15th globally – up three places from 2023.Tel Aviv is the next most expensive city in the region, followed by Abu Dhabi (43), Riyadh (90) and Jeddah (97). The cost-of-living index for UAE is estimated at 72.3, with an average monthly income at $4,097 and an average purchasing power index at 88.6, while that for Saudi Arabia is at 51.8, with an average monthly income and purchasing index estimated at $2,307 and 69.6, respectively and India at 24.6, with an average monthly income of $199 and purchasing index at 12.6, as per World Data. #ExpatSalaries #GlobalMobility #TalentAcquisition #CompensationStrategy #CostOfLiving #HRTrends #WorkforceManagement

🇦🇪 Population Percentage of expats to uae nationals 🇦🇪 As of recent estimates, expatriates make up approximately 80-85% of the population in the UAE, with UAE nationals (Emiratis) comprising about 10-15%. This demographic structure has a significant impact on the property market in Dubai for several reasons: 1. High Demand for Housing: The large expat population drives demand for rental properties and residential units. Many expatriates prefer to rent rather than buy, ensuring a steady demand for rental properties. This demand supports stable rental yields for property investors. 2. Diverse Market Segments: With expatriates coming from various countries and economic backgrounds, there is demand for a wide range of property types—from luxury villas and high-end apartments to more affordable housing options. This diversity helps to create a robust and dynamic property market that caters to different segments. 3. Investment Opportunities: The influx of expatriates often leads to increased foreign investment in the property market. Investors are attracted by the potential for rental income and capital appreciation, further boosting the real estate sector. 4. Economic Growth: A large expatriate workforce contributes to economic growth and development, which in turn supports the real estate market. As businesses thrive and new ones are established, the need for commercial properties and office spaces also rises, complementing the residential property market. 5. Government Policies: The UAE government has implemented several policies to attract and retain expatriates, such as long-term visas and property ownership incentives for non-citizens. These policies enhance the appeal of Dubai as a destination for expats, promoting stability and growth in the property market. Overall, the significant expatriate population in the UAE, particularly in Dubai, provides a continuous and varied demand for real estate, contributing to a vibrant and resilient property market. Contact me directly if your looking for investment opportunities in Dubai 📲 - Ryan Booth - +971585700448 - ⁠Ryan.booth@tyronash.com Tyron Ash #realestateinvestment #property #dubai #expats #dubai

Dubai has risen to become the most expensive city for international employees in the Middle East, with rising rents and insurance premiums contributing to the increase in expenses. https://bit.ly/3LVkdo5 Find out more about the cheapest and most expensive cities in our 2024 Cost of Living City Ranking, and gain insights on how you can plan compensation strategies for international assignees. #talent #HR

"Buy and hold": great in theory and... Also totally impractical for most UAE expats. - You lose your job unexpectedly or there are delays in your salary and have to sell your investments at a loss in order to survive - You are highly paid in the GCC/UAE job market and with constant influx of younger, cheaper people from abroad, it’s hard to get that exact salary again - You don’t have a pension scheme, unemployment check or welfare system to help your family abroad or to take care of you. You’re assuming an indefinite time horizon that one has as a resident/citizen of UK/US/CA, but most expats here don’t actually have that kind of certainty, stability or time. As a high-earning expat in the Middle East, you need to consider that… - You don’t have the “forever” part of Bogle’s “buy and hold forever” formula. - You will probably need your money if something goes wrong if you haven’t already achieved financial freedom. - You’ll want to decrease dependence on your salary to feel security. - You’ll pay international student tuition for your kids in USD/AED/CAD. - You don’t have to pay taxes which makes some things far easier. You can know all the strategies you want… But as a UAE expat that doesn’t necessarily want to return home, Are you creating a financial life that actually feels free for YOU... Or are you only following other people’s rules? I wrote about this in even more detail in a past edition of my newsletter. Read it here: https://lnkd.in/d_RnRZ4D You could lose a decade of your life buying and holding only to sell at a loss when something goes wrong… Or you could choose a cheaper and faster path that actually fits your needs.

"Today, as we celebrate International Labour Day, let's honor the contributions of workers worldwide. Your dedication and hard work are the foundation of progress and prosperity for all. Happy Labour Day!" #laborday #workhard #workworkwork #worklife #home #dubaihome #realestate #labourday #internationallabourday #realestateagent #dubai #dubairealestate #dubairealestatebroker #dubaiproperties #prideandproperty #prideandpropertyae

The spirit of piety and blessings as Ramadan begins in the UAE on March 11 For businesses operating in the UAE, Ramadan presents a dual landscape. On the one hand, the altered working hours and cultural sensitivities could be challenging for foreign firms who are new to the market. Yet, on the other hand, it offers opportunities, especially for those who can adapt to the shifting consumer needs during the period. Experience the sacred month with reduced working hours for both public and private sector workers: https://ow.ly/V7s250QXmYn #MiddleEastBriefing #UAEbusiness #RamadanSpirit #RamadanOpportunities #CulturalSensitivities

It’s all well and good being known as the land of luxury, but is Dubai becoming unaffordable for middle-income earners? The latest salary survey from Cooper Fitch revealed, on average, employees shouldn’t expect any pay rise next year, despite the cost of pretty much everything increasing. Interesting insights from Trefor Murphy DBA; Stuart Fry; Hasnain Malik and Saeed Mohammed Al Qatami https://lnkd.in/dM9FShtp