Home Why Expats in the UAE Don’t Stay 2 Years Anymore
Why Expats in the UAE Don’t Stay 2 Years Anymore
Getting your Trinity Audio player ready... |
When I first started working in the UAE over 20 years ago, I had every intention of being an Expat returning to the UK in just two years… Doesn’t everyone say that? More recently, the new norm is 5 years, but I digress… For me, it was supposed to be a brief stint—an opportunity to experience a different culture, gain international experience, save some more money, reduce my mortgage, and then head back home. But as is the case for so many expats, what was once a short-term plan evolved into something much more permanent. Today, I’m not just an expat; I’m a long-term resident, and the UAE has become home to me and my family.
This journey isn’t entirely new to me. I spent much of my childhood in the UAE as well, as my father was an oil and gas expat. Growing up here, I witnessed firsthand how the country transformed and developed, and those early experiences left a lasting impression on me. Returning as an adult to work here felt like coming full circle, and it’s no surprise that what was supposed to be a short-term assignment turned into a lifelong commitment.
I’m not alone in this journey. The narrative of the UAE as a temporary work opportunity has changed dramatically over the years. More and more expats are choosing to stay, sometimes for decades, turning what was once a two-year project into a lifelong commitment. Let’s explore why this shift has occurred, the financial implications of staying longer, and how proper financial advice can make all the difference.
From Temporary Assignments to Permanent Residencies
Let’s use a real life example on this one, a married couple I know well arrived in Dubai in 2005 on a two-year assignment employed by an international bank. Both Expats returning to the UK once their assignment was complete but in the meantime, their plan was simple: work hard, save money, and return to the UK. However, as their careers progressed, they found that the opportunities in Dubai far outpaced those back home. Fast forward to today, and they’ve been in the UAE for nearly 20 years.
This is a common story among expats in the UAE. What starts as a short-term career move often evolves into an extended stay as expats find themselves advancing rapidly in their careers, with opportunities that are hard to match elsewhere.
The Evolution of Expat Roles and Family Dynamics
When expats first started arriving in the UAE decades ago, many came with the mindset of fulfilling a specific job role for a limited period. Today, the scenario has changed significantly. Expats are not only staying longer, but their roles are evolving, and they are often switching jobs within the region to further their careers. Additionally, what was once a single-income household has often transformed into a dual-income family, with many spouses joining the workforce.
The Importance of Financial Planning in an Extended Stay
When expats initially move to the UAE, their financial planning often revolves around the idea of a short-term stay. Investments, savings, and insurance are all set up with the expectation of returning home soon. However, as the stay extends, these initial plans may no longer align with their long-term needs.
Leaving behind old investments or insurance policies without re-evaluating them can be detrimental. For instance, many expats continue to hold onto life insurance policies or retirement accounts from their home countries that may no longer serve them effectively given their long-term plans in the UAE. The financial landscape here offers different opportunities and risks, which need to be managed with a strategy that aligns with their extended stay.
The UAE vs. Home Countries
One of the reasons why expats choose to stay longer in the UAE is the stark contrast between life here and in their home countries. The UAE offers a tax-free environment, a high standard of living, and world-class infrastructure that many home countries simply cannot match.
In recent years, many expats have been reluctant to return to their home countries due to increasing taxes, declining public services, and a lifestyle that doesn’t compare to the comfort and security they’ve found in the UAE. For example, expats from the UK and Europe often find that the cost of living, combined with higher taxes and less favorable weather, makes returning home less appealing. Having just spent 10 days in the UK, I was amazed at how expensive things were. The expense difference of the UK vs Dubai is no longer there. People used to go back to the UK and return with suitcases full, but now, in my opinion, the difference is cost is minimal, if at all.
However, there are still those who decide to go back. From my experience, the most common reasons include family ties or the education of children. Some expats also return to take care of aging parents or to pursue retirement plans that are better suited to their home countries.
It’s important to note that for those who do return, the transition can be challenging. Re-entering the workforce, adjusting to a different pace of life, and re-establishing a social network are all factors that need to be considered. This is where thorough financial planning becomes crucial to ensure a smooth transition and to maintain the financial gains achieved during their time in the UAE.
My Journey as an Expat
Like many of my clients, and as mentioned before, I came to the UAE with the intention of staying for just two years. But as time went on, I found that the opportunities here were far greater than I had imagined. The professional growth, the lifestyle, and the community all contributed to my decision to stay longer. I went back to the UK in 2015, I was an expat returning to the UK and my time in the UAE was over. It was right timing for my children’s higher education, family dynamic, etc. but as my 2nd winter was approaching, the darker days coming – that was me done, back to the sandpit I came. The commutes, the dark days, the taxes, the lack of positivity and growth were enough to convince me that my time in the UAE was not over.
It was just impossible to give up the UAE… and that being in the UK actually had no upside for me.
The Relevancy of Financial Advice
As expats transition from temporary residents to long-term ones, the need for relevant financial advice becomes paramount. Financial planning that made sense for a two-year stay is unlikely to be adequate for a longer-term commitment. This is where expert advice becomes crucial.
Reassessing your financial situation, considering new investment opportunities, and ensuring that your insurance policies and retirement plans are aligned with your extended stay can make all the difference. The goal is to not only protect your wealth but also to grow it in a way that supports your long-term goals in the UAE.
Embracing the Long-Term Journey
The UAE has evolved into a destination where expats stay, they thrive, and they build lives that span decades. Whether you’re just starting your journey or have been here for years, understanding the implications of staying longer and ensuring that your financial plans are aligned with your new reality is essential.
As someone who has lived this journey, I’m here to help you with the long-term expat life in the UAE. Whether it’s reassessing your investments, planning for retirement, or simply ensuring that your financial strategies are in line with your current and future goals, I’m committed to providing the guidance you need. Regardless of whether you are an Expat staying, returning to the UK, or anywhere else in the world, you need a solid plan to ensure nothing falls through the gaps.
Let’s discuss how we can work together to ensure your financial well-being as you embrace your long-term journey in the UAE.
Book A Discovery Meeting
If you need more advice then contact Mike Coady today to discuss our solutions and how we can help.
About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), a Fellow of the Association of Professional Sales (F.APS), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
To learn how to choose a great financial adviser, download our free guide.
Blog published by Mike Coady.
Related
You May Also Like
DISCLOSURE:
mikecoady.com, the website, does not provide financial, investment or tax advice. It is specially designed to provide its users with general information. It does not give individual or specific advice on which products or services are the most appropriate for an individual’s particular circumstances. We may from time to time publish content on this site that has been created by affiliated or unaffiliated contributors.