UAE residents feeling the pinch and considering move home

Many say the high costs of housing and rising expenses is pricing them out of the UAE and feel it is time to return home.

Removal companies have reported more expats relocating – many moving back to their home countries or elsewhere abroad. The increasingly high cost of living without salary increases has been highlighted as a major reason people feel they have to leave. Nicole Hill / The National
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ABU DHABI // Many expatriates are packing up and moving home because the cost of living is rising every month while their salaries stay the same, or are even reduced.

Many of those interviewed said the cost of housing, household bills and even petrol, was pricing them out of the UAE.

A resident of Al Zeina in Abu Dhabi, who asked to remain anonymous, said when she and her family moved to the UAE for her husband to take up a public-sector position last year it was an “attractive ­proposition”.

“Since then, being here has ­become less economically viable and, as a result, less enjoyable,” she said.

“Rents are far too high in ­relation to salaries and housing allowances, the infrastructure charges and now property taxes have made it worse, and the cold water charges are astronomical when the service charge is sometimes quadruple the usage charge.

“With so little competition in the marketplace for utilities there is nowhere to go to get a better deal. Fuel is due to go up again and we believe VAT will be charged at some point.”

It was disappointing, she said, after moving to the Emirates with the “high expectations” that come with starting a new life.

“The reality is very different and the lifestyle and sunshine do not mitigate the costs,” she said.

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“The more stealth taxes are ­imposed, the less attractive coming here will be. After all, we came here so as not to pay tax.

“I like it here, but I’m concerned that we may well be in a situation where, in the not-too-distant future, we will be forced to leave even if we don’t want to.”

This expatriate said she believed her views would resonate with others.

They do with Abu Dhabi resident and quasi-government ­employee Laura, who asked for only her first name to be used.

“I do feel this is an important issue,” she said. “I love the UAE, I feel at home here and I had a couple of years of ceaseless job hunting to move here.

“However, I’m now considering leaving because I’ve realised I have fewer opportunities here, not more.

“It is almost impossible for me to progress in my field because there’s widespread Emiratisation in the senior positions and there’s a haze of uncertainty over my position here.”

Laura said that low oil prices and subsequent government restructuring meant she had to change jobs within six months of arriving, and she felt a repeat situation could be imminent in her current role.

Meanwhile, she said, costs were increasing.

“The expense of everything is a secondary but not insignificant point,” she said.

“I feel many expats would agree we’re taking home far less than we used to because of health ­insurance changes, constant and uncapped accommodation increases and the introduction of municipality tax.

“I don’t want to sound like all is doom and gloom because I love it here, but I do think there are some compelling reasons to consider moving away.”

One Dutch expat in Abu Dhabi has made the decision to go. She and her family will leave in September, disillusioned by high rents and “insane” annual increases in the cost of accommodation.

“My husband has received a 15 per cent salary decrease,” she said. “On top of that we don’t know for how much longer the job will last.”

She identified Tasleem utility bills, the 3 per cent tax on rentals, the lack of a rent cap, and the fact immigrants pay more for electricity and water as factors that squeezed her family’s monthly budget.

Another Abu Dhabi resident, who is seven months pregnant, said her family was feeling the ripple effect of the oil price slump. After four years, they will leave in August, after her husband recently lost his job.

“It was a surprise and not a good moment at all,” she said. “We would like to stay but it’s almost impossible to find a new job in the oil industry.”

newsdesk@thenational.ae