Anyone could chime in for the verdict on this one? I've heard unverified information from an Associate 2 at BCG that entry level comp is $140k all in now (100k base - 15k profit sharing - 25k performance bonus - PLUS 15k housing allowance). Obviously all non US citizens are not taxed.
This is too ridiculously high and I for one don't believe it. Would appreciate any insight
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The Middle East offices pay the most in the world and those firms pay the most in their industry. I've heard similar quotes in the range of $130-$140k for MBB and top Rx shops in the region.
If you ever do think about moving to the region one day, reach out and I would gladly give you a referral. You are a great guy who has contributed a lot to the Consulting forum..
While I can't directly confirm or deny that number :) the compensation is pretty well. To the extent of my knowledge, McK pays the least among MBB and strong Tier 2s (S&, Kearney, OW) pay more than them to compete for top talent. I know that most firms pay 25-30% more for people to join the Riyadh offices and that number might even go unto 50%...
Got an offer for 130k USD entry-level from a strong tier 2 so can confirm.
Apologies but could you please elaborate a bit more here? What's the breakdown for the 130k?
What's up with this "housing allowance" thing I keep hearing about?
I’m sorry but I’m not at liberty to disclose the exact breakdown. Base is about half the figure I provided. Rest is split between housing stipend, travel and transportation allowance, expected bonus (your performance + firm performance).
It’s the first offer I’ve gotten in the region so I don’t know why they give this housing allowance. From what I’ve heard it’s included in every contract. I guess it’s just money you can spend on rent/mortgage.
I worked in strategy consulting before in another region and we had some transportation and travel allowance and I had heard it was for tax reasons that they labelled it that way. Maybe it’s the same for this housing allowance? fyi just speculating here
I can confirm BCG pays $90k base +20/30% bonus for entry-level jobs straight of undergrad in Dubai/Abu Dhabi. I assume the rest of MBB pay similar salaries but it grows quickly as after 3 years I can also confirm you get to make $130-140k including bonus at MBB (0% tax unless you are American). This includes housing allowance but it's almost the same than salary, all companies and jobs label 30-50% of your salary as housing allowance but companies here usually give you the money and then you can spend less on housing and keep the rest, it's common practice. However I heard other tier2 consulting companies pay significantly above MBB and when you look at banking salaries including bonuses people here can make a lot for the age/exp, again except Americans that need to pay taxes at home.
Happy to share more about the middle east market, I have been here several years already.
Hey,
This seems interesting I’d love to hear more about banking comp compared to consulting as I recently received 2 offers in consulting in Dubai and applied for a couple of banking positions as well.
Would also appreciate if you could give me a rough estimate of how much you spend on a monthly basis (and if you are a big spender or not) so I can make sense out of it.
Thanks in advance, much appreciated!
Congrats on your offers! I cannot talk about banking salaries in depth because I only have 2 friends doing banking in the ME but I know salaries are not comparable to consulting as the tax and bonus factors makes them really high. Consulting salaries here are good but I wouldn't say higher than other corporate jobs at well established companies (maybe slightly higher since bonus in consulting is usually higher than at corporates). An interesting industry is tech/data science in the region, I have seen salaries skyrocketing here in the last 2 years for mid-senior positions (say 4/5 years of exp).
Regarding the cost of living, there 2 things you want to control if you want to save (which for me is the only reason to come here): rent and leisure. If you are young and single then rent won't be a problem and I highly advise you to move to expat neighborhoods and have flatmates if possible (many junior consultants share 3-4 bedroom apartments and it is the wisest decision to keep your rent costs down and also make friends). Regarding leisure, in my case I have a cheap taste and don't like to overspend but I keep seeing many young people making the mistake of coming here and spending their salaries on having 'too much' or 'expensive' fun (or both) and even running into debt to finance lavish lifestyles, which is extremely easy in this country as everything is designed for you to spend money. The rest here is not very expensive: food, bills and some stuff is way cheaper such as cars and gas (obviously this country produces its own). Feel free to PM me if you want me to give you specific numbers on what you can expect to spend based on your profile (age, single/married, kids)
Right after undergrad? correct me if I'm wrong, but I grew up in the GCC and the impression I have so far is that firms in the Middle East prefer hiring slightly experienced people (i.e. 5-10 years of experience in the West). I don't think moving to the GCC right after undergrad is the best idea, since you will be constantly overlooked for promotions and have a very slow ascent up the ladder, whereas you can join them at a more senior position instead later on in your career. Again, this is the impression I have. I could be wrong here.
Yeah but how hard is it to move back?
Extremely hard.. the industries and expertise you develop there are often not applicable in other regions e.g., government projects vs due diligence, or pricing strategy projects. Other factors are more personal such as would you be willing to cut your comp in half to do the same job elsewhere
I think you last point is absolutely right. Whenever I meet people who has been living in the ME for +5 years their reason #1 not to go back to the US/EU is because they will not get paid as good as in here after you factor taxes in, many times we are talking about 30-50% paycuts. Now, I wouldn't say this is true for 100% of the people but it happens to most of us.
Now I wouldn't say going back is extremely hard, for example one of the best ways to move back is transferring internally in your company, but you have to be willing to take the paycut although many would be willing to do it especially if you have kids and you want them growing up in the US/EU. Also, depending on the industry you work in skills are actually very transferrable, good point on government projects but that is not all to it.
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