For those of us who have been in the UAE for a while it is easy to forget the challenges of moving abroad. But, as the economic downturn eases, we are seeing an increasing number of new residents walking through our Jum-eirah branch's door everyday.
In addition to the emotional complexities of leaving behind loved ones, expats face the potential challenges of setting up a new life for themselves and their families abroad. In this month's column I want to impart a few words of financial wisdom which should prove useful in your first few months here.
Always have enough cash for the first few weeks. You never know what added expenses may pop up and having easily ready funds will smooth this process. Some organisations in Dubai will only take cash payments, so make sure you have this to hand.
Budget The best means of preparing for this is to allow yourself a ‘set-up' budget for costs which you will incur in establishing your new life and a living expenses budget. Try to keep the two separate. Large expenses such as housing rent and transportation need to be factored in and covered. Remember you will probably need to wait a full month before your first pay cheque.
Remember the exchange rate. Foreign currency can seem like ‘Monopoly money' and this can lead to overspending. By keeping a calculator and a note of the exchange rate handy you can ensure you know how much things cost and exactly how much you are spending. On a regular basis remember to deduct the amount spent from your budget to ensure you keep on top of all your outgoings.
Open a local bank account. One of the first things you will need to do is open a local bank account when you arrive in Dubai. This is mandatory for salary transfers when you live and work in the UAE. With a great selection of top international banks with local product offerings, as well as a range of UAE banks, there is plenty of choice for expats moving to Dubai. Consider opening your new account with a financial institution that has a global reach in order that it gives you the capacity to manage your affairs should you wish to relocate again or repatriate, without having to go through the often onerous process of setting up foreign accounts.
Financial advice is widely available in the UAE, but for reputable and qualified assistance make sure the individual is licensed by the Central Bank.
Take advantage of standing orders. Outstanding payments in your home country for a mortgage or perhaps your children's school fees can be paid in a straightforward fashion by setting up standing orders which transfer your money automatically every month. Similarly, once you have a clearer idea of your outgoings, its advisable to sit with a financial adviser to look at various local savings and investment option that may be open to you for your duration of stay in the UAE.
Always have a safety net in your home country. Just in case your situation should change, it's a good idea to keep a financial nest egg in your home country in preparation for any expenses at home or abroad which may arise unexpectedly.
In short, taking professional advice on as many topics as possible as well as talking to those who already live, or have lived, in the UAE will give you the greatest chance of success. If you have any questions (about money!) don't hesitate to pop in and see us.
The writer is Head of Personal Banking for Lloyds TSB Middle East. Opinions expressed are his own.
