The UAE has been ranked the second-best nation among 52 global destinations for foreign workers to start a new life abroad, as the country offers easy communication and minimal bureaucratic issues, according to a report by global network InterNations.
Bahrain topped the Expat Essentials Index in terms of offering a smooth transition to people moving to the country, according to InterNations, which polled 11,970 foreigners in 181 countries or territories last year for information on various aspects of life as an expatriate.
Singapore was in third place while Estonia and Oman were fourth and fifth, respectively, InterNations said in its annual report released on Tuesday.
Rounding off the top 10 was Indonesia in sixth place, followed by Saudi Arabia, Qatar, Kenya and Canada.
The Expat Essentials Index ranked destinations based on four categories: housing, language, digital life and administration topics.
However, the countries in which expatriates struggled the most with settling in were Germany, in 52nd place, Japan (51) and China (50).
“Foreigners in all three countries struggle with the local language and a lack of digitalisation,” said InterNations, which has more than 4.5 million members.
Last September, the UAE was ranked first across the Middle East, Africa and Asia, and was among the top 10 countries around the world for expatriates to relocate to, a survey by health insurance company Cigna found.
Four per cent of expatriates around the world said they wanted to relocate to the UAE because of its progressive policy changes, recent visa reforms and economic rebound after Covid-19, Cigna's 360° Global Well-Being Survey showed.
The UAE, the Arab world’s second-largest economy, has undertaken several economic, legal and social reforms in recent years to strengthen its business environment, boost foreign direct investment, attract skilled workers and provide incentives to companies to set up or expand their operations.
In 2019, amendments were introduced to the golden visa initiative to simplify the eligibility criteria and expand the categories of beneficiaries.
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The 10-year visa is granted to investors, entrepreneurs, skilled professionals who earn a monthly salary of more than Dh30,000 ($8,167), as well as exceptional talents, scientists and professionals, outstanding students and graduates, property investors, humanitarian pioneers and frontline heroes.
A green visa provides a five-year residency for skilled employees without the need for a sponsor or employer. The minimum educational level is a bachelor’s degree or equivalent and the salary should not be less than Dh15,000.
Meanwhile, the UAE introduced a one-year digital nomad visa in March 2021 that allows people to live in the Emirates while continuing to work for employers in their home countries.
Dubai also offers a five-year visa for retirees older than 55.
While the accommodation subcategory in the Expat Essentials Index focuses on the affordability of housing and ease of finding housing for foreign workers, the language section deals with the ease of living abroad without speaking the local language and the ease of learning the local language.
Administration topics include the ease of dealing with local bureaucracies, opening a local bank account and obtaining a visa.
The digital life subcategory includes the availability of administrative services online, the ease of obtaining high-speed internet access at home, ease of paying without cash and unrestricted access to online services.
The UAE scored highly in the language subcategory, with 85 per cent of foreign workers polled saying that it was easy to live in the country without speaking the local language, compared with 51 per cent globally.
Four in 10 residents said that learning the local language was easy in the UAE, according to InterNations.
Foreign workers are also “very pleased” with the way administration topics are handled in the UAE, ranking the country first globally in terms of the ease of obtaining a residence visa.
Additionally, 61 per cent said that it was easy to deal with the local bureaucracy in the UAE, compared with 40 per cent around the world.
In the digital life subcategory, foreign workers voted the UAE third out of 52 in terms of the availability of administrative services online, as well as 10th when it comes to the ease of getting high-speed internet access at home.
Three quarters of residents said they considered it easy to find housing in the UAE but only 38 per cent said that it was affordable, InterNations found.
First-placed Bahrain also scored highly in the administration subcategory, with 67 per cent of respondents saying it was easy to deal with the local authorities.
Seven in 10 expatriates also said that it was easy to obtain a visa to move to Bahrain, InterNations said.
When it comes to digital life, Bahrain is in the top 10 in terms of the availability of government services online.
Expatriates in Bahrain are also not held back by language barriers, with 82 per cent saying it was easy to live there without speaking the local language.
“Oman ranked among the top 10 in both the housing and the language subcategories, while Saudi Arabia offers expats relatively worry-free bureaucracy, easily available housing and not much of a language barrier,” InterNations said.
“Qatar claims a place among the top 10 in the language and admin topics subcategories.”
Top 10 countries for expats to get started
- Bahrain
- UAE
- Singapore
- Estonia
- Oman
- Indonesia
- Saudi Arabia
- Qatar
- Kenya
- Canada
Bottom 10 countries for expats to get started
- Malta
- France
- Czech Republic
- Vietnam
- Greece
- Italy
- Kuwait
- China
- Japan
- Germany
Source: InterNations
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Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Three ways to boost your credit score
Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:
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Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Specs%20
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The years Ramadan fell in May
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Engine: 3.0-litre six-cylinder turbo
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Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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