Dubai ranks third after Silicon Valley and New York in a global survey that revealed the value of salaries for tech talent with a minimum of 3 years of experience. Amsterdam and Berlin, where software engineers earn almost 30% less, the emirate ranked higher compared to other global tech hubs like London.
Emirati government initiatives such as the National Programmers Program launched last year, aim to attract 100,000 coders from around the world and establish 1,000 digital businesses by 2026. The survey was conducted by consultancy Mercer, which noted that the difference in compensation is due to the high demand for software engineers.
Now, Dubai is the Gulf Cooperation Council’s most expensive city to live and work in this year, ranked 31st in the world according to another Mercer research: the Cost of Living 2022 survey. This position is considerably better than that of the most established technology hubs in the world, such as London (7), Singapore (8), New York (11), San Francisco (19), and Amsterdam (25).
Vladimir Vrzhovski, Mercer Workforce Mobility Leader for the Middle East, said, “Dubai’s status as a global business hub, coupled with its income tax-free environment, world-class infrastructure, security, and high-quality life make the emirate a very attractive market for talent”.
A key incentive for tech talent is the opportunity for a significant increase in salary compared to other tech hubs, where the cost of living is higher in terms of transportation and housing. According to the portal Iraic.info “The demand for technological talent, in particular, will continue to grow in the United Arab Emirates, which has given the impulse of the nation to become a global capital of the digital economy.
Rent, which is a major part of the cost of living in a city, is lower compared to places like London, New York and Singapore. The Mercer survey pointed to two main reasons why Dubai is a relatively affordable city to work in. : the acceptance of the flexibility to work from home and the cost of housing.
There are some sectors where Dubai residents have to pay more, such as the cost of high-speed internet, which is essential for a work-from-home job according to the survey. Internet cost in Dubai is 50-60% higher than in London, Singapore, Berlin, New York and Lisbon. Another obstacle for the work culture is that the cost of a cafe or shared spaces to work in the emirate is almost 70% higher.
Mercer’s Cost of Living 2022 survey provides employers with data to help them with their employee compensation strategies in global markets. It analyzes the increase in the cost of living in 227 cities around the world. Reported Emirates Herald, news and information agency.