Ballers in Dubai

Also, some people have expressed concern that the economy is too shallow for any kind of sustained growth in the financial services sector. It is assumed that Oil is their main source of revenue, and once this dries up (most likely within the next 20 years), their world presence will disappear as well. However, oil is only 6% of the Emirate's reveunues (http://www.ameinfo.com/122863.html), and trade and finance make up 16% and 11%, respectively (Wikipedia).

U.S. banks also seem to have a long term interest in the Middle East. I found this article on Mergers and Inquisitions http://www.iddmagazine.com/issues/2008_21/182122-1.html?partner=thestree...
It seems these banks are in it to win it as they are moving some serious rain makers over to the Arabian Peninsula.

Comments?

Also, is anyone aware of what kind of tax you would pay on the income you earn in dubai if you plan to move back to Canada at some point? Im assuming the tax rate is much lower, but does anyone have a ballpark figure?

Tourism also constitutes a significant portion of GDP and will continue grow as they seek to diversify away from oil. Dubai is overdeveloped in my opinion (at least as far as projected developments that are yet to be complete). It would be amazing to spend some time over there

I don't know the exact situation there but some of my classmates had offers from banks (not bb) in Dubai/DIFC and were not very convinced by the opportunities. They were originally from the Middle East and had no problem living in Dubai but told me that taking into account the rapidly increasing real estate prices and/or long commute/poor transportation system, the base salary was not that great (even taking into account the lack of income tax). Also, they were convinced that getting experience in more mature markets i.e. London and going to Dubai after 2 years or so would be better for their careers.

Real estate (especially luxury real estate) is a HUGE industry in Dubai and Abu Dhabi, and you're right junkbondswap, they definitely have to cut back a little...they expect everybody to be able to live in a +2mil condo or to buy their own $50million slice of "the World"

as an ex-pat, i believe you don't pay taxes at all (or pay very little) as there is an agreement with the UAE.

I think in terms of US expatriates, you are tax free until ~100k, and then its still much lighter than being here, because you don't have to pay a state tax and some other things.

the bb in dubai are not doing very well. I think only way to cash in from the Dubai boom is by working for local banks (dubai islamic, emirates bank ndb, etc). All the local bank's profits increased more than 50% from last year, but the global BBs are not doing well (theyre only into infrastructure financing).
On the other hand, PE is hot as alwys and pays well.

Living here is tough, the rents are much as NY, and there is no public transport (it is under construction to be completed by 2010-2011). Having said that, it will be a big change from NA lifestyle.

Wow so meyouzick, do you have any data on the top PE firms over there?

They just launched a satelite site of the NYMERC, called the Dubai Mercantile Exchange its supposed to be a full blown trading floor for oil ... you can get some really good insight into dubai if you read "Rigged: The True Story of an Ivy League Kid Who Changed the World of Oil, from Wall Street to Dubai" ... its an amazing book

Thanks, I'll definitely check that book out, even though I'm not really into trading..

the book sounds good, ill be lookin out for it too.

some of the top PE firms in dubai are abraaj capital, ADIA (abu dhabi investment authority), DI (Dubai investments), EIIC(emirates int'l investment company).

fellow monkeys,

i worked with a BB in dubai for about 5 months..the problem is that even though all the BB are moving into dubai, the deals predominantly revolve around real estate or oil & gas..

second, there is a big PE presence but it is focused to providing capital adequacy than execution, which is also exhibited by the sovereign wealth funds..there are a couple financial firms partly owned by the government which have deep pockets and sizable deals on a global scale..

third, getting a business visa is kinda expensive if the bank you work with is not in the duty free zone, so at the very least they expect you to work with them for atleast 3 years..

hope that helps..

That's very helpful, thank you. But what is the problem with real estate and oil/gas?