Dubai “It really is a dream,” says Stephy Beck, looking out the window of her apartment at the Dubai skyline. Your home is on the 81st floor of the Burj Khalifa – the tallest building in the world. Living here is a daily reminder of what she works so hard for, says Beck.
In Dubai, the city on the Persian Gulf with a population of 3.3 million, the native Franconian has set up a software company worth millions. Your customers are small businesses. Beck emigrated in 2018, initially she was employed by a charity company in Dubai.
Like them, around 1,500 Germans emigrate to the United Arab Emirates (UAE) every year. However, most of them return after a short time. According to those familiar with the country, this is often due to misconceptions about how life is there. Because although Dubai also offers some tax advantages and sunny weather all year round, the 12,000 expats there don’t always have it easy.
Emigration to Dubai is linked to a job
When Beck was on vacation in Dubai eleven years ago, she hadn’t thought about emigrating, she says today. It wasn’t until 2018, when she was once again passing through Dubai, that she started dreaming of living there.
At the time, she was on the verge of burnout, says the businesswoman, who at the time was still running her own advertising agency in Germany. For this reason, she initially did not want to take any risks in Dubai and initially started with a permanent position.
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A right decision, Mariem Al Ssayrafi would probably say. The lawyer has lived in the desert city herself since 2017 and supports emigrants in all legal issues relating to their move to Dubai. “We recommend that emigrants make a precise plan beforehand,” says Al Ssayrafi. “If you are already looking for a job in Dubai from Germany, the visa process is much easier and cheaper because the employer then pays for almost everything.” In this case, however, the visa is also linked to the job. If you lose your job, you face expulsion within a month.
Alternatively, setting up a business in Dubai can help emigrants obtain a visa. However, you have to budget at least 15,000 euros and five weeks for bureaucratic costs and administrative processes. The legal adviser says that you should allow at least six months for the entire emigration and immigration process. “I always recommend that emigrants have a financial cushion of at least six months to cover living costs. Otherwise the dream of Dubai will quickly come to an end.”
Another way to get a residence permit and thus the coveted “Emirates ID” in Dubai is through real estate investments. “Anyone who buys real estate worth at least one million dirhams, i.e. for around 250,000 euros, has the right to a residence permit,” says real estate entrepreneur Daniel Garofoli. He and his company have been brokering exclusive real estate projects to German investors for eight years.
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“However, I would not recommend my clients to move directly into their own property when they come to Dubai,” says Garofoli. “Then it’s better to take the return of up to ten percent a year with you and rent one yourself so that you can flexibly try out different parts of the city.” He himself emigrated to Dubai eleven years ago and, like Stephy Beck, rents a place in the Burj Khalifa.
Mariem Al Ssayrafi, Stephy Beck, Daniel Garofoli (from left)
Entrepreneur Beck feels safe as a woman in Dubai. “You don’t need to lock your front door here. You can even leave your bag or laptop unattended in the café. Nothing gets stolen there.”
Lawyer Mariem Al Ssayrafi explains that Dubai strictly checks who is allowed into the country. “When you apply for a visa, you go through a kind of quality check. And anyone who doesn’t follow the rules here or commits a crime will simply be thrown out of the country again.”
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A strictness that is also reflected in other points in the United Arab Emirates that are more problematic than the strict immigration policy: freedom of expression in the country is significantly restricted. Anyone who publicly criticizes the government, for example, must expect a prison sentence. The human rights organization Amnesty International also regularly attests human rights violations in the UAE.
Dubai offers plenty of tax advantages – with a catch
With regard to salary and employment opportunities, there is hardly any difference between women and men, says Al Ssayrafi. This has advantages and disadvantages: There is no maternity leave, which is why women can go back to work seamlessly after childbirth – provided they want to and can afford the meager wages for a nanny.
“What counts is that you are hardworking and good at your field. And you should be prepared to work more than in Germany,” says Mariem Al Ssayrafi. Perfect English is also a must.
The main reason why Germans want to emigrate to Dubai is still the tax advantage. “There are no income taxes here, and corporate taxes have just been introduced and are only 9 percent on domestic profits over a certain amount,” says Al Ssayrafi.
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However, many emigrants were too naïve when it came to taxes and then experienced a shock when they got there. “Dubai finances itself through fees,” says lawyer Al Ssayrafi. “Many of my customers are always amazed when they have to pay 5,000 euros after a year to renew their company license, for example.”
In addition, there is no social security in Dubai. Expats must take care of private pension or health insurance. At the same time, the cost of living is high. “What I save on taxes here, I spend more on my living expenses,” says entrepreneur Stephy Beck. According to the online database Numbeo, the average cost of living in Dubai is around 6.8 percent higher than in Berlin.
The dark side of Dubai
These costs are in stark contrast to the low salaries earned by construction and service workers in Dubai. They are often only paid 300 to 400 euros a month – human rights organizations often criticize Dubai for this as well.
The situation is very different for international entrepreneurs. Also thanks to the tax advantages, they can easily earn more than in Germany. However, the money earned has to be used to pay rental prices, which are tough.
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“The rent for an average apartment in an acceptable location in Dubai costs comparatively as much as an apartment in downtown Munich,” says real estate expert Daniel Garofoli. A two-room apartment costs an average of 1800 euros per month.
“At best, you can still get a room in a shared flat for less than 1,000 euros,” says Garofoli. The rent usually has to be paid a year in advance, if necessary with the help of the employer.
If you don’t pay on time, you could be thrown out of your apartment – and the country – within a month. “Dubai is very landlord friendly. That also makes it so attractive for real estate investors,” says Daniel Garofoli. He sells two-room apartments in luxury new buildings outside the city center from 200,000 euros. “The purchase prices are still relatively relaxed compared to the rental prices.” However, getting a loan from a bank in Dubai is very difficult and only possible with a lot of equity.
Dubai as a city of growth
The demand for new living space is unbroken, says the expert. Accordingly, there is constant construction. “Dubai is addicted to foreign investors’ money,” Garofoli said. Stephy Beck sees this as a disadvantage: “The city is never finished. You really have to get used to always having construction sites on your doorstep.”
You also have to be prepared for hot summers. “You can fry a fried egg on the street in the summer, it’s that hot,” says Beck. In the summer months temperatures of more than 40 degrees are the norm, in winter nights it doesn’t get colder than 15 degrees. According to Stephy Beck, summer can only be spent indoors.
All in all, the advantages outweigh the advantages for emigrant Beck in Dubai. “It’s a city that never sleeps and is constantly growing. There is no standstill here,” she says. If you want to grow quickly personally or entrepreneurially, this is the right place.
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