Expats mourn the good old days of generous Gulf States relocation packages

The Gulf States employment market is shifting away from mega relocation packages and employing younger expat professionals.

It seems the good old days for expats in the Middle East will soon be a memory as a market shift towards less generous subsidies, lower wages and fewer perks takes hold. According to recruitment market analysts, employers are moving towards taking on younger expat professionals on lower wages as well as slashing living allowances, refusing to pay for schooling and cutting back on fringe benefits. If schooling subsidies are allowed, they’re being capped at a set amount and limited to two children.

As a result, Dubai school fees have been reduced by up to 15 per cent and competitiveness between educational institutions has increased. Perks such as business class flights for senior executives are on the way out, with all employees now forced to travel in economy class. Expats already in work aren’t exempted from the belt-tightening exercises as companies across the region continue their obsession with cost-consciousness as regards increased salaries. Several recruitment agencies note that when interviewing for new positions, clients are offering salaries lower than the present earnings of prospective expats.

The agencies are blaming company accountants’ total control over salary inflation, also noting that applicants often accept lower wages as they’re not happy in their current jobs or want to move to a better-known company brand. As a result of the changes, more and more applicants at the mid-salary level are prepared to leave their families back in the home country rather than lose an opportunity to move jobs, and those who’ve brought their families with them are considering home-schooling as an economical alternative to the region’s high-cost school fees. Arrivals from war-torn countries and those with vulnerable jobs are now attempting to emigrate to Australia or Canada rather than returning to their own lands.