My Riyadh Salary: ‘I took on a $10,000-a-month job as my savings are locked in Lebanon’

Mosbah Dannaoui, who works as a QHSE director, says he has $400,000 frozen in a Lebanese bank

Mosbah Dannaoui sought employment in Saudi Arabia early last year due to the financial crisis and inflationary pressures in Lebanon. Courtesy: Mosbah Dannaoui

Mosbah Dannaoui, an industrial engineering specialist, decided to retire early at the age of 50 and started a consultancy in his home country, Lebanon, in 2016. His consultancy helps companies restructure their operations, helping them improve efficiency, problem-solve and obtain certifications.

“However, the situation in Lebanon worsened during the 2018-2019 uprising and again with the Covid-19 pandemic, intensifying financial strains on my family,” Mr Dannaoui recalls.

“With wages falling short and expenses rising, my eldest daughter and son contributed their earnings while my consultancy absorbed the mounting costs. Amid these challenges, I also took on a role as an associate professor at a local university.”

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The resulting financial crisis and inflationary pressures in Lebanon forced Mr Dannaoui to seek employment in Saudi Arabia early last year. He lives and works in Riyadh as a quality, health, safety and environment (QHSE) director.

Although the role does not fully align with his experience and offered “below-market” pay, it was a “necessary step” to secure financial stability during uncertain times, he says.

Mr Dannaoui’s wife and three children live in the Lebanese city of Tripoli. He has a bachelor’s degree in industrial engineering from the University of Arizona, Tucson, and a master’s in industrial engineering and mathematics from Texas State University, in the US. In 2019, he completed a PhD in industrial engineering through a correspondence programme from Atlantic International University in Hawaii.

What was your first job and salary?

My career began in 1995 at Future Pipe Industries in Lebanon as a quality control engineer on a monthly salary of $832. I worked there for 13 years. When I quit, I was QHSE manager for the whole group.

I was later offered an opportunity to co-establish a fibreglass factory in Dammam, Saudi Arabia. FPI's refusal to grant me a $500 salary increase led me to take up that offer.

In 2008, I co-founded Tamid Pipes in Dammam, where I assumed the roles of QHSE general manager and board member. In parallel, I expanded my expertise internationally through consulting. I established and led the NSF International office in Abu Dhabi as the manager for the Mena region and advised the marketing and public relations teams at pipe manufacturer Amiantit in Dammam.

By 2014, insufficient funding and a lack of support forced the closure of Tamid Pipes, culminating in my termination without receiving my dues.

Tell us about your current role and salary

I work as a QHSE director for Wetico, a water treatment company that’s a part of Abunayyan Holding in Riyadh. My overall monthly salary is about $10,000 or 38,000 Saudi riyals.

My consultancy business in Lebanon is on a project basis and depends on market demand. At its peak before Covid-19, I would make $3,000 to $4,000 a month.

What are your major monthly expenses?

I spend nearly $5,000 in Lebanon every month. This includes education fees for my children and bills for non-government service providers. We have two electricity bills, one to be paid to the government for supplying power for five to six hours a day, and the other to power generators or solar energy firms. Similarly, we have two separate water bills to be paid. Also, taxes and inflation are high in Lebanon.

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In Riyadh, because I live alone, my costs are up to 10,000 riyals a month. This includes 4,500 riyals in rent for a one-bedroom furnished apartment, 3,000 riyals on my car and 2,000 riyals on food.

What do you spend your disposable income on?

Family holidays. We're planning to go to Turkey this summer.

Have you saved for retirement?

I did save for retirement, but I cannot access the money. I retired in 2016 and started my consultancy to keep me going. But banks have stopped us from accessing money in our accounts.

Banks in Lebanon do not allow depositors to take [out] their money. I have close to $400,000 in the bank that I have no access to unless it's a withdrawal of $400 a month. This is why I had to seek employment again in Saudi Arabia.

I don’t manage to save a lot from my current income as most of it is used to cover my needs in Riyadh and my family’s expenses in Lebanon. I save between $2,000 and $3,000 a month for emergencies. This can sustain me for four to five months based on my current expenses.

What asset classes do you invest in?

Not too many. I invested in the stock market in 2016 when I went back to Lebanon. I did not lose a lot of money, but I bailed out.

Have you purchased property in your home country?

Yes, I purchased an apartment in Tripoli for $76,000 in 1996 and have also bought a new apartment in the same city for $240,000.

Mosbah Dannaoui says he has saved for retirement but cannot access the money from his Lebanese bank account. Courtesy: Mosbah Dannaoui

Do you have any debt?

No. I only owe small amounts of money to my family and friends. My wife does not believe in taking debt to sustain our lifestyle. She encourages my family and me to live within our means.

Have you inherited a sum of money?

I have a substantial inheritance from my father. It is worth nearly $300,000 but it's tied up in real estate. My siblings and I did not split the inheritance because the property market is not stable and none of us is in dire need of cash. My father made his money working as an electrical contractor in Kuwait. He also set up a factory in Lebanon.

Growing up, were you taught to handle your finances?

Yes, my mother is a budgeting queen and my father was also financially aware. They taught us to consider where we spend money. I am also self-taught since I had to learn to manage my income, especially while studying abroad.

What are your financial goals?

To live comfortably. I believe money earned is money to spend. I don’t believe in the idea of keeping it for later, because I've tried that and now my money is stuck with banks.

Do you worry about money?

Yes, because of the uncertainties in the region. But I believe in spending logically and not going overboard. Keep aside money for emergencies.

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