Whether you pick Dubai or Abu Dhabi – two ever-growing cities in the United Arab Emirates, both of them are home to thousands of high net worth expatriates. Maybe you’re thinking of joining them? If the answer is yes, smart move!
Abu Dhabi, often dubbed the richest city in the world, is home to just over 1,500,000 people and is the second largest city in the UAE. It is also the political and industrial heart of the country, and the seat of government. Major multinational corporations and financial institutions are based there, too, among them the Central Bank of the United Arab Emirates and the Abu Dhabi Securities Exchange.
To many people in the West, Dubai – surrounded by the emirate of the same name – is synonymous with the UAE. It is the largest city in the country with a population of well over 3 million, composed mainly of expatriates from across the globe.
Historically, the oil industry drove Dubai’s phenomenal development, but now diversification is the name of the game. Today, the big earners for the city are finance, real estate and tourism. Although considered one of the most expensive cities in the region, Dubai is also regarded as one of the best places to live in the Middle East.
But it’s never easy moving home, even just a few miles down the road. It is even more difficult when your new home is thousands of miles away in a brand new country. There are lots of problems to contend with initially, especially if relocation involves the whole family. There’s the language barrier to think about, schools for the children, finding your way about for shopping and other domestic chores, making new friends – and worries over money, of course.
If finance in all its various guises is not your strong point then you need to take some time out to gather your thoughts. Talk to a bank like HSBC, for example, a multinational banking institution well respected in the UAE and wider Gulf region.
The right bank will be able to help with good advice and will probably suggest you set up some sort of offshore or international account in which to pay your monthly salary. Having the account up and running before you arrive in the UAE will certainly make life a little easier from day one, giving you one less problem to worry about.
It is equally important to talk to a U.S. expat CPA about your tax situation as an expat in the UAE as you will need to continue filing for taxes in the United States. Taxes in the United Arab Emirates are generally low but you will need to declare all your foreign bank accounts and foreign investments to the IRS. Most of the taxes can be offset partially or in their entirety thus contacting an accountant is paramount.
