DUBAI—Brad Dennis, an accountant from Chicago, more than doubled his salary by leaving the country. Dennis (those are his first and middle names) came to Dubai two years ago after being headhunted by a global firm. He now makes $250,000 a year and drives a Mercedes-Benz provided by his company. At night, he gets past the velvet rope at some of Dubai’s hottest clubs, each time accompanied by a different woman.
Life is obviously good for Brad, just as it is for the thousands of other Americans and Westerners who have come to Dubai in recent years to seek their fortunes. The combination of high salaries paid to professionals and executives driven by Dubai’s exploding growth, luxurious housing and transportation allowances, and the fact that there are no local taxes has proved an irresistible lure to many.
"Dubai has become a magnet for ambitious young people who want an environment where they can make a lot of money and also have fun," says Kashif Arbab, a Briton of Pakistani origin who trades for equities firm Killik & Co. in Dubai.
The expat scene has traditionally been dominated by Britons because the U.K. controlled the region until 1971. But as Dubai’s profile in the U.S. grows and more American companies open offices here—oil-industry-services company Halliburton, for one, relocated its global headquarters from Texas to Dubai in 2007—the accents heard at some of Dubai’s hottest spots and most luxurious stores are increasingly American.
Among the new expats is Mare Elston, who was one of the few Americans in Dubai 10 years ago but who left and returned again recently. She works as a specialist in communications and event planning, and while she wouldn’t reveal her salary, it’s likely she takes home at least twice what she would earn in a comparable job back home in the U.S.
"There are many more Americans than ever before here these days," says the 36-year-old Elston. "The economy is expanding rapidly, and companies cannot seem to find enough qualified professionals to fill middle- and upper-management jobs."
In order to attract those professionals, firms in Dubai are paying top dollar. According to one C.E.O. of a major bank in Dubai, the average compensation package for an expat working at his bank is around $150,000, and he expects that number to grow in the coming years as competition for employees increases. In addition, firms typically give housing allowances of up to $10,000 per month to their top executives, in addition to transportation budgets of another $5,000 per month. Further sweetening the deal is the fact that none of that income is taxed in Dubai, and Americans are not required to pay any taxes on their first $80,000 earned abroad.
A wide range of industries in Dubai are hiring, especially those being hardest hit in the U.S. and Europe. New sovereign wealth funds are being created, real estate companies are expanding, financial-services firms are sprouting like palm trees, international banks seem to be opening branches here almost daily, and the hospitality industry is growing exponentially.
That means more midlevel and upper-management executives are needed in the United Arab Emirates, particularly in Dubai, which has been exploding at warp speed.
"The region has a shortage of qualified executives," says Patrick Satamian, head of Kraft Foods in the Middle East. "Companies are continually looking for talent."
Hence the Dubai-bound traffic of youthful executives in search of El Dorado. And these well-heeled expats have plenty of places to spend their riches. There are miles of shopping malls with stores representing every major luxury brand. There are long waiting lists for Ferraris and Lamborghinis—even Gulfstream jets. The exclusive Polo Club is besieged with applications, as are several golfing facilities in and around Dubai.
On any given evening, you can see the high-end sports cars parked near the bars and restaurants of places like the Marine Resort or Brad’s favorite haunt, Boudoir, a restaurant-cum-dance bar. Those who frequent places like these do not seem to mind that the prices for food and libations are at least as high as those in the toniest joints in New York or London or Paris.
As Elston points out, "Dubai has certainly become a city of single young Americans who make big money and who like to party."
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