Dubai: A PwC (PricewaterhouseCoopers) data shared by Dubai Media office showed Dubai topped major global jurisdictions in take home earnings of individuals. Dubai’s position ahead of world’s leading financial and business hubs such as Hong Kong, Singapore and New York points to the pre-eminence of the emirate in offering top tax free compensation to resident employees.
The PWC study compared the salaries taken home by highly-paid resident employees in different cities across the world, and Dubai came out on top with employees here taking home 100 per cent of their income. Compensation is a major factor in employee attraction, retention, and turnover. With higher compensation packages attracting top global talent, it is only a logical extension that these high earners save, retain and manage their wealth within the jurisdiction where they work and live.
Tax-free salaries combined with efficient wealth management infrastructure in Dubai is indeed helping the emirate to retain and manage such savings. The UAE’s financial wealth reached $600 billion in 2020, despite the global pandemic impacting the local economy, according Boston Consulting Group’s latest wealth report.
One of the significant aspects of the study was that the UAE is fast emerging as a leading cross-border wealth management center with as much as half a trillion dollars of overseas wealth managed in the country in 2020. In 2020, the country became the sixth largest overseas wealth management centre. While Switzerland with $2.4 trillion in overseas wealth managed there is the top global jurisdiction that attracted largest chunk of foreign wealth followed by Hong Kong, Singapore, USA and Isle of Man in the first five positions.
In the global competition for talent, Dubai is fast emerging a clear winner with its tax-free salaries and world-class living. The city’s well-developed financial infrastructure is fully geared to help professionals manage their big earnings, leading to further wealth creation for both these professionals and the emirate.