High living costs force half of expats to consider leaving UAE
Around half of expats in the UAE are considers leaving the country due to the rising cost of living, according to new research published this week.
A YouGov study into the saving habits of Emiratis and expats, carried out for The National newspaper, found that while 42 percent say they have improved their position financially in recent years, 50 percent of employed expats would consider leaving the UAE due to the high cost of living.
The survey polled 1,104 expatriates and Emiratis across the UAE on attitudes towards money, spending, saving and job security. When asked if they would consider moving away from the UAE because of the cost of living, 17 per cent said definitely yes while a further 33 per cent said probably yes. Only 21 per cent said no, while the rest were unsure. Many blamed the increased cost of living on their inability to put away a little money every month.
“The majority of expatriates consider money and saving for the future as an important factor in moving to UAE,” Alaeddine Ghazouani, research manager at YouGov, told The National.
“But the rising costs of living are increasingly holding them back from safeguarding the financial security they have been looking for, which makes moving out of the UAE a serious alternative.”
Of the 1,104 respondents, 56 percent said rent was impacting most on their financial well-being, while 13 percent said it was education.
When asked how they were coping with the cost of living in the UAE, 56 percent either said somewhat difficult (40 percent) or very difficult (16 percent).
The cost of living (22 percent) was among the biggest financial worries, followed by rising rents (19 percent), not being able to save (15 percent) and becoming unemployed (12 percent).
Transferring money home is a common occurrence for expats, with 86 percent sending funds back for basic needs and expenses of family members, with 40 percent of expats doing so at least once a month.
When it comes to savings, 25 percent of those surveyed said they didn’t save anything at all, while 30 percent managed to save between one and ten percent each month. Just 40 percent are happy with what they manage to save each month.
When it comes to job satisfaction, 74 percent expressed some level of happiness with their current position, with just under half receiving a pay rise during the previous year.
The cost of living was not an exclusive worry of expatriates.
Mai Al Hameli, 26, an Emirati who works as a brand coordinator in Abu Dhabi, said her biggest financial worry was school fees. “Every year the fees are increasing,” she said.
E M, 23, an Emirati student and housewife in Dubai, criticised the cost of rent in the Emirates.
“I got married and moved to Ajman,” she said. “Now I am looking for a house in Dubai and everywhere is expensive.
“I even cross-referenced prices in Dubai and in Barcelona, Spain. The rental prices in Barcelona in comparison to Dubai are about 30 per cent less.”
E M said she worried about money and was considering moving abroad to study. “To be able to pay for a house or rent a house in Dubai or Abu Dhabi – where my preferred university will be – in the long run it will cost too much.
“It will be cheaper for us to study abroad and move abroad.
“The only way for us to afford to study and live in Dubai is to take a loan. Or ask for financial help from family, which we do not want to do.”
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