# Do the Emiratis have too much money?



## amln (Nov 14, 2011)

Currently travelling across the UAE. I've noticed that there are lots of luxury or SUV cars on the streets. 
From an acquaintance who works for a large European company in Dubai I hear that they can't manage to recruit local Emiratis (apparently the package isn't attractive enough for them), so they have to resort to expatriates.

Which makes me wonder if perhaps the Emiratis have too much money. If yes, I'd be curious to know what jobs the Emiratis have which generate such high incomes. What does the local economy depend on. Is it all the oil wealth which trickles down to everybody?
What does the average Emirati do for a living?


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## dreamer2014 (Dec 25, 2013)

interesting question and thoughts...i wonder the same....


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## twowheelsgood (Feb 21, 2013)

Who decides what is 'too much' ?

Its a fatuous argument which doesn't belong in this forum.

FWIW anyone who say they do have too much is just envious


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## xxxxxxxxclownfish (Dec 15, 2013)

twowheelsgood said:


> Who decides what is 'too much' ?
> 
> Its a fatuous argument which doesn't belong in this forum.
> 
> FWIW anyone who say they do have too much is just envious



I agree, this is a ridiculous thread. Regardless of what anyone thinks about our Emirati hosts, it is irrelevant. The Emirati Government earns its income from oil and more recently, tourism and what it choses to spend it on and how much it choses to support its citizens is, quite frankly, nobody's business but their own.

Yes, it is true, Emiratis do receive very generous payments from their Government and given these benefit payments, may find themselves being in a position of not having to work. Many chose to do so as they will often want to experience life outside the UAE or make a meaningful contribution to society and their own mental wellbeing. It is difficult to work abroad unless you have a working visa.

Boy am I jealous of the payments received by Emiratis who can then spend their days at leisure and shopping - show me anyone who says they aren't and I will show you a liar!

Regardless, all ex-pats here are working under invitation only and if you think differently, then best you leave now. It is rude to openly criticize your hosts and I would chose a different platform if you want to do so.


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## amln (Nov 14, 2011)

This wasn't meant to criticize the Emiratis, and believe it or not, I'm not envious. I'm just curious.

This lady of the European company with whom I spoke was told me that there was a position available and then applied for it. 
She has a local contract, but it still makes sense for her because the total amount is the same as in Germany, but because it's tax-free the net amount she gets is about twice of what she would make in Germany (because in Germany you have to pay tax, unemployment, pension etc.)

The only reason she got this job is that the company wasn't able to recruit an Emirati.

But coming back to the original question, is it really so that Emiratis have a wealthy life without working? If so the economy will collapse once they run out of oil.


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## Canuck_Sens (Nov 16, 2010)

1. There are no silly questions.

2. It is true that there are tons of luxury cars in this country and they may give you the impression that Emiratis are handsomely paid. You probably saw more of them driving these cars. It is true that this is something most people ask themselves after spending some time in the country

Let me shed some light into this.

a) There is an "Emiratization" policy where companies are obliged to have a certain number of locals working for them. There are not many of them so Supply is limited. Along with that, they are not usually as qualified as to expats. So yes they tend to be handsomely paid and have a strong bargaining power. Qualified Emiratis are very very well paid. For me, well paid means 30% to 50% more than a skillful expat . Say a guy is drawing AED 40K, I woud tend to think that an Emirati in the same level would draw somewhere between AED 52 K to AED 60 K (or more). Wasta plays a role too.

b) Cars are cheap in general here and even the Luxury ones compared to other "tax" countries

c) There are also some people that love showing off and portray a financial status they cannot really afford. So yeah you will see people having cars like a BMW X6 living in weird places eating shwarmas everyday. Or be penniless to sustain a standard..


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## pamela0810 (Apr 5, 2010)

Emiratis work hard for their living. Don't judge the entire country by what you see on Dubai's roads. Not all Emiratis are born into wealth and drive flashy cars. There are plenty of people living reasonably frugal lives outside of this city. That being said, the government does take very good care of its people irrespective of their stature.

A lot of the fancy cars are driven by overpaid expats. Some of them have BMW goggles and coca cola pockets (I think that's what the saying is).


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## Chocoholic (Oct 29, 2012)

It's a huge misconception that Emiratis have loads of money and don't have to work - anyone who's been here long enough and actually knows some locals will be able to tell you that. Whilst it's true that many work in government owned companies, earning good wages, there are also many Emiratis who work their behinds off!

I know several who not only hold down two or more jobs at the same time, but also have their own companies as well.


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## xxxxxxxxclownfish (Dec 15, 2013)

pamela0810 said:


> Emiratis work hard for their living. Don't judge the entire country by what you see on Dubai's roads. Not all Emiratis are born into wealth and drive flashy cars. There are plenty of people living reasonably frugal lives outside of this city. That being said, the government does take very good care of its people irrespective of their stature.
> 
> A lot of the fancy cars are driven by overpaid expats. Some of them have BMW goggles and coca cola pockets (I think that's what the saying is).




Champagne Lifestyle, Lager Income!!!


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## indoMLA (Feb 6, 2011)

DEBT. That is all.


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## kiwistech (Dec 14, 2013)

*Liked it*



pamela0810 said:


> Emiratis work hard for their living. Don't judge the entire country by what you see on Dubai's roads. Not all Emiratis are born into wealth and drive flashy cars. There are plenty of people living reasonably frugal lives outside of this city. That being said, the government does take very good care of its people irrespective of their stature.
> 
> A lot of the fancy cars are driven by overpaid expats. Some of them have itgoggles and coca cola pockets (I think that's what the saying is).



I am very much satisfied with your answer, it is not good to say always controversial about Emiraties, some of them must be like ordinary people who are basically not from wealthy background.


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## Berliner (Jul 18, 2013)

- The cars are bought on bank loans. That's how most people (not me!) buy their cars here

- They get free land from the govt. Not all, but quite a few do (esp. in Abu Dhabi). Furthermore they get loans with super low interests from banks to build a house on that land.

- If an expat wants to start a business in UAE, then he has to find an Emirati who gets to be a sleeping partner and owns 50% of the company. 

- A lot of Emiratis have their loans pardoned by the govt. 

- Emiratis in UAQ, RAK, Ajman and Sharjah are not so well off, and don't receive as much support from the govt., as the ones in Abu Dhabi & Dubai

Jealous? Hell no. I am glad I went through super tough times when I was growing up. Didn't have money to pay rent sometimes, ate spaghetti and eggs for weeks cause that is all I could afford. Looking back at those times I appreciate them, because they made me the person that I am today.


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## Chocoholic (Oct 29, 2012)

Berliner said:


> - If an expat wants to start a business in UAE, then he has to find an Emirati who gets to be a sleeping partner and owns 50% of the company.


Actually it's 51% as they have to be the major shareholder. Plus this isn't true anymore as expats can start their own business through one of the many freezones.


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## Canuck_Sens (Nov 16, 2010)

I think people are making big big confusion about the main question. The poster asked whether Emiratis have too much money or earn too much.

Compared to others people (non Emirati) they do on the same level of qualification and experience (even not having the right qualifications they tend to make more)

Those who cannot work or don't have land or whatever reason, there is a pretty good welfare system.

The welfare system is such that even Emiratis who went to jail for not honoring their cheques were bailed out by the federal government and they are given lands if they dont have any, they have marriage funds and a series of other schemes. They can go overseas for health treatments using the right channels. All in all, it is pretty good. The well being for Emiratis is actually awesome. 

So my view is really simple they are better off compared to expats. I am not here to say whether this is right or wrong just stating the facts.

In my company ALL locals have other businesses while expat workers are forbidden to have their own businesses.


Oh there are poor people everywhere, but they have chance to rise. Opportunities and policies supporting that abound.


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## Mix (Jul 18, 2010)

As mentioned by others, “too much” is a relative term. I don’t think anybody should deny or resent others their good fortune; nobody controls where or when they are born. Let’s face it – if our own countries could support such a balance of low tax and high welfare, there is a good chance many of us wouldn’t be expatriated here in the first place.

Others have already made the good point that the visible signs of wealth are not necessarily reliable. For example, luxury cars are not as expensive here, and plenty of them are paid for on credit that is effectively underwritten by the state.

I have a couple of other thoughts:


If you consider the long-term interests of the nation, and the government’s desire to build a sustainable economy, vibrant society, cohesive national culture, etc. then the benefits built into the system may well be “too much”. I have heard Emirati colleagues argue that the generosity of many well-meaning policies inadvertently undermines the incentive for nationals to try hard, take personal risks or responsibility at school and work. This is sometimes an area of cross-generational friction – the country-building generations who were born into much poorer living conditions vs. the new generations who have only known the (relatively recent) prosperity.

If you consider how the UAE is able to afford to support its citizens in this way, then these benefits are probably not “too much”. If you go to other GCC countries there is often a lot of jealousy and bitterness among those nationals (Saudis, Bahrainis, etc.) about how well looked-after the Emiratis are. There are many reasons why this is the case (natural resources, population ratios, etc.). However, I believe some of the most important are to do with how the Emiratis collectively managed their country, opened up and diversified the economy, committed to long-term investment and development in strategic industries, distributed the benefits beyond a few families, learned from expatriates (rather than treating them only as servants), etc. Even if you look at differences across the Emirates, it seems clear that not all the benefits enjoyed today were inevitable and unearned.


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## Canuck_Sens (Nov 16, 2010)

Hi Mix,

Let's dig further your other thoughts since you are opened to discuss the consequences of such policies.

I do really concur with your point 1 there. The excessive generosity offers no incentive for Emiratis to "get better". I also think that there is no way to promote a vibrant society if you do not have an immigration policy that is well bound. The fear that expats will "steal" their wealth is really a very limited view shared by many locals still. A good immigration policy will guarantee a better growth like it did in many countries.

You have also to consider that extra generosity is a way of control. If you make the entire population happy money wise they tend not to complain. The UAE population did not have the same sort of complaints compared to the other Arab countries when the Arab spring blossomed. See what Saudi did..a massive donation to everyone.


I don't really concur with point 2, though. Diversifying the economy is one condition but not the sole condition to guarantee a prosper future for this nation. As with any developed nation, the prosperity of its people relies heavily in education which is the major building block and policies supporting that. I think they still lag a lot in this sense.

The strategy as I see it unfolding is to transform this place as a hub for goods and have the locals controlling it and couple that with the tourism industry.

This model is weak as it is easy to copy. Asian countries that are not far from here have better conditions (less hardship and are becoming less expensive) and are doing the same. Where do you think people will wanna go in 10 years ? I bet China. That land is immense and there is a lot to see. We dont have a lots to see here


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## Mix (Jul 18, 2010)

I don't necessarily disagree - and I think it's important to separate out the backward-looking view vs. the forward-looking view.

I was referring to the historical reasons why today's Emirati wealth or income may be justified. The most obvious benchmark for relative performance is other GCC countries (for similarity of history, institutions, natural resources, climate, etc.), where the UAE compares favourably. That is not to say the UAE's approach to development has been "optimal" in a wider context, or "the best" compared to all nations around the world (although subjectively, I suspect it ranks in the top 25% over the past few decades).

You raise a very important secondary question about the future perspective and whether current wealth or income levels are sustainable.

I fully agree that education is key - human capital cannot be built as quickly as physical infrastructure has been. Without delving into the mechanics of what is/is not working right now, I imagine it will take another decade (at least) of sustained investment and focus to build end-to-end educational systems to the right level. You referred to a "developed nation", and while I think the UAE has many developed features, public education is one of the things that still tips it into the "developing" bucket for me.

Personally, I have always been a bit puzzled as to the tourism attractions of the Gulf, so would go along with arguments that other regions with better natural or cultural advantages could easily take over. In terms of acting as a trading hub, I think that has been the UAE (or at least Dubai) advantage for a long time, and I'm not sure it is that easily or quickly eroded. Trust and reputation take time to establish and the UAE has done a relatively good job over a sustained period of building a business-friendly environment (via the Free Zones, etc.) within a challenging region. I think there is plenty of life left in the UAE's role as an East-West meeting place and market (particularly given the investments in transport and information infrastructure).

I don't have detailed insight to the UAE public accounts, but I think the inherently high visibility of tourism and our particular exposure to it as expats disguises more prosaic revenue streams - a quick google suggests about 55% of Dubai government revenues come from business and trade fees, and only 14% of UAE GDP is from tourism (vs. a 9% global average).

I'm not even qualified to come to any conclusion about the UAE's prospects over the next two years, let alone the next 20 (as somebody recently asked on this forum). However, I think the nation has at least been taking a more forward-looking approach than many others towards a post-oil/geo-politically different world. It seems unlikely that all of the strategic industries the various emirates are investing in (finance, transport, alternative energy, tourism, property, etc.) will survive and thrive long-term, but by hedging its bets there is a chance a couple of them will do so.


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## UmMohamed (Dec 31, 2013)

it was mostly oil, they have been building a non oil dependent income in many areas now for a long time, they look ahead. They do not have too much in my opinion. They do have a lot, but are very genouse, they do a LOT of aid around the world. Locals tend to work in gov or own land/malls/companies, ect


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## arabianhorse (Nov 13, 2013)

silly thread started by someone who is either too bloody naive or just a plain ole sh*t-stirrer


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## adilrafiqxm (Jan 2, 2014)

Hi, 
Yes it may be true that the Locals receive benefits from their government,, But they work as well along side the expats in both public and private sector... and not all are that lucky.. i have seen not so rich ones too..


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## Seabee (Jul 15, 2010)

A comment on a couple of things in the original question:

_I've noticed that there are lots of luxury or SUV cars on the streets. 
Is it all the oil wealth which trickles down to everybody?_

Emiratis are only around 15% of the population, so most of what you see on the streets is owned by the 85% expat population (in reality bank owned because the majority are bought on bank loans).

It's only Abu Dhabi that has oil wealth, the other emirates including Dubai have none or very little.


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## nonoa (Jan 9, 2014)

I'm an Emirati and just thought I'd give my 2 fils.

Practically everything all of you said is true and false. With the attempt to infuse other cultures, religions, businesses, standards and everything else, the UAE is rife with contradiction.

My family and I have rented homes (over 10) for 28 years. This is due to our financial instability, changes in the economy, prices of my siblings schooling which means we always have to be on the lookout for better rental deals just like everyone else. I don't work for myself. I work to support a family that I did not start. I have to send my brothers and sisters to school and God knows if I ever get married, I do not want to have to deal with that all over again.

You also have to note, that most Emiratis, unlike western countries, live with extended family especially if they don't have the means to move out on their own (imagine if everyone over 18 decided to move out and rent their own apartment in AD...it's impossible, the rents are ridiculous). It also means managing grocery bills, electrical consumption, leisure spending etc can be way more difficult and without a good salary package, can barely make budget. At the same time there are those who are lucky to have a wealthy family to support them, and ease them into their own homes and lives. They get to keep their salaries and not have to spend them on helping support the family.

I don't blame anyone for assuming things about us. It's hard to judge Emiratis by looking at them. We all wear Abayas and Kanduras (which makes us look fancier than we are) and just like many of you said, a lot of what you see is debt. If we had the same laws the US did when the economy crashed, a lot of us would have been living in tents.

It's partly true that keeping us comfortable means we have less to complain about but then again, many other countries have different benefits for citizens than visitors. There are no unemployment benefits, even my grandmother (who was 81) had to prove every 2 years that she did not have or start any personal business in order to receive her welfare check. She couldn't walk and barely left the house.

All the big benefits like housing loans, free housing, debt repayment and all other "get out of jail free" initiatives require a long process. Most people receiving homes have applied to them many years ago and you have to prove that you are in need of the aid in order to receive it. We are few in number, and the government is trying to just keep us from being entirely eradicated.

Is it perfect? no
Does everyone get what they ask for? no
Is it free of corruption? nowhere is
Are we lucky that these opportunities exist for us? YES. And that's what they are, opportunities. You have to work hard to try to get them and when you do, you say Alhamdullilah because we are aware that not many countries offer chances like the UAE does.


Sorry for the long post!


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## mariot (Nov 4, 2013)

Good post Nonoa


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## adilrafiqxm (Jan 2, 2014)

lovely answer bro..


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## blazeaway (Sep 28, 2011)

nonoa said:


> I'm an Emirati and just thought I'd give my 2 fils. Practically everything all of you said is true and false. With the attempt to infuse other cultures, religions, businesses, standards and everything else, the UAE is rife with contradiction. My family and I have rented homes (over 10) for 28 years. This is due to our financial instability, changes in the economy, prices of my siblings schooling which means we always have to be on the lookout for better rental deals just like everyone else. I don't work for myself. I work to support a family that I did not start. I have to send my brothers and sisters to school and God knows if I ever get married, I do not want to have to deal with that all over again. You also have to note, that most Emiratis, unlike western countries, live with extended family especially if they don't have the means to move out on their own (imagine if everyone over 18 decided to move out and rent their own apartment in AD...it's impossible, the rents are ridiculous). It also means managing grocery bills, electrical consumption, leisure spending etc can be way more difficult and without a good salary package, can barely make budget. At the same time there are those who are lucky to have a wealthy family to support them, and ease them into their own homes and lives. They get to keep their salaries and not have to spend them on helping support the family. I don't blame anyone for assuming things about us. It's hard to judge Emiratis by looking at them. We all wear Abayas and Kanduras (which makes us look fancier than we are) and just like many of you said, a lot of what you see is debt. If we had the same laws the US did when the economy crashed, a lot of us would have been living in tents. It's partly true that keeping us comfortable means we have less to complain about but then again, many other countries have different benefits for citizens than visitors. There are no unemployment benefits, even my grandmother (who was 81) had to prove every 2 years that she did not have or start any personal business in order to receive her welfare check. She couldn't walk and barely left the house. All the big benefits like housing loans, free housing, debt repayment and all other "get out of jail free" initiatives require a long process. Most people receiving homes have applied to them many years ago and you have to prove that you are in need of the aid in order to receive it. We are few in number, and the government is trying to just keep us from being entirely eradicated. Is it perfect? no Does everyone get what they ask for? no Is it free of corruption? nowhere is Are we lucky that these opportunities exist for us? YES. And that's what they are, opportunities. You have to work hard to try to get them and when you do, you say Alhamdullilah because we are aware that not many countries offer chances like the UAE does. Sorry for the long post!


A very good post!


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## twowheelsgood (Feb 21, 2013)

Thank you for your hospitality here Nonoa - you and your country make us all very welcome !


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