As taxes rise in London, bankers are eyeing Abu Dhabi and Dubai instead
Last week's UK budget may not have increased income taxes or been as punitive as feared when it came to carried interest, but it's unlikely to have done much to dim London bankers' sudden enthusiasm for moving to the Middle East. As London's star has dimmed since Brexit, those of Dubai and Abu Dhabi have risen.
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Oscar Orellana-Hyder, co-founder of Gulf Cooperation Council (GCC)-based executive search firm Cordell Partners, says applications for jobs in the UAE from London and Europe are up around 25% in the fourth quarter of this year compared to the same period of 2023. "I have dozens of people reaching out from London and Europe for a new opportunity in the GCC, not only the UAE, in Bahrain, Oman Kuwait Qatar and Saudi Arabia as well," he tells us. "Interest in working in The GCC is up dramatically."
Taxes are some but not all the issue. Bankers who've moved to the GCC say they're also encouraged by the time zone, which sits between London and Asia, by the cost of living, and by the lifestyle, which is like a cross between Singapore and a non-apocalyptic version of Mad Max.
"It's good here for families," says one senior buy-side quant. "There are cheap services and personnel like maids, chauffeurs and butlers." As befits an oil-producing region, the ultimate downtime activity involves driving cars around the desert. "It's very motorsport friendly here," says the quant, referencing the Yas Marina Circuit which hosts the Abu Dhabi Grand Prix, and the fun to be had driving about in the desert.
Another banker says driving in the desert on the sand dunes is the ultimate in local experiences. "It's a vast space," he says. "Last time I did it, I only saw two or three other people." Desert driving seemingly helps compensate for the lack of greenery: "It's a lifestyle choice. There are few trees, but you can spend the weekend desert driving or scuba diving instead."
It's not just London that people are moving from. Singapore and Hong Kong are also furnishing the UAE with talent. "Singapore has become very expensive, and Hong Kong has fewer opportunities than in the past," says the quant. "Expenses here are only marginally higher than in London, but you can earn significantly more on a net basis," claims one banker.
Orellana-Hyder says people are also drawn to the GCC by low crime rates, ever-improving schooling and good healthcare systems. "I've never waited longer than 30 mins for anything. You're usually seen in A&E immediately, and you can get same day bookings for doctors," he claims.
Individual enthusiasm for jobs in the Middle East is matched by organizations' enthusiasm for hiring them. Barclays, Goldman Sachs, Lazard, SMBC and others are all building in Saudi Arabia. Hedge funds have discovered a passion for Abu Dhabi, which they say is driven by individual portfolio managers demanding to move there. Orellana-Hyder says there are openings for everyone from portfolio managers and analysts to compliance, risk and finance staff.
Most of the hires are expats. However, many will not stay forever. "A lot of people here are saving up," says one banker. "What they're saving for, I'm not too sure, but I think they have aspirations of moving back home in the future."
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