According to a recent worldwide poll, the emirate comes in third place for paying tech personnel with at least three years of expertise, behind only Silicon Valley and New York. Software developers make over 30% more in Dubai than they do in other major technology centres like London, Amsterdam, and Berlin.
The survey was conducted by consulting firm Mercer, which pointed out that the difference in compensation is because of high demand for software engineers, boosted by government initiatives such as National Program for Coders.
Launched last year, the Program aims to attract 100,000 coders from around the globe and set up 1,000 digital companies by 2026.
While Dubai is the most expensive city in the GCC to live and work in for expatriates this year, it ranked 31st in the world as per another Mercer research – the Cost of Living 2022 survey. It ranked considerably lower than most established tech hubs in the world, including London (7th), Singapore (8th), New York (11th), San Francisco (19th), and Amsterdam (25th).
“Dubai’s status as a global business hub, coupled with its income tax-free environment, world-class infrastructure, safety, and high quality of life make the emirate a very attractive market for talent,” Vladimir Vrzhovski, workforce mobility leader at Mercer Middle East, said.
“The demand for tech talent, in particular, will continue to grow in the UAE given the nation’s drive to be a global capital of the digital economy. Above all, a key incentive for tech talent is the opportunity for a significant uplift in salary when compared to other tech hubs, where the cost of living is higher in terms of transportation and housing,” he added.
Factors behind low cost of living
The Mercer survey pointed to two main reasons for Dubai being a relatively affordable city to work in – the acceptance of flexibility to work from home and housing cost.
With the rise of remote and flexible work globally, almost 60 percent of UAE employers offer flexible working, thus reducing employees’ transportation costs significantly. And even if they have to travel, the cost is less with low average fuel costs and lost cost of procuring vehicles. The cost of public transportation is also lower in Dubai as compared to other cities.
The housing and rental costs, which is a significant portion of the cost of living in a city, are lower compared to places like London, New York and Singapore.
The survey said there are a few areas where Dubai residents have to pay higher, like the cost of high-speed internet which is essential for flexible working. The internet cost in Dubai is 50 to 60 per cent higher than London, Singapore, Berlin, New York, and Lisbon. Another hindrance to the flexible working culture is nearly 70 percent higher cost of cafes and co-working space in the city.
“Over the years, the UAE has also implemented several initiatives that make it easier for talent to live, work and stay in the country,” Vrzhovski added. “The launch of Golden Visa program in addition to Dubai’s recently announced Talent Pass aims to attract global professionals in the fields of technology amongst other key areas.”
Mercer’s Cost of Living 2022 survey provides employers with data to help them navigate compensation strategies for their mobile employees in the global markets. It looks at the rising cost of living across 227 cities worldwide, including the cost of packages for employees which depend on factors such as currency fluctuations, cost inflation for goods and services and accommodation expenses.
About Author
