Just about to sign on the dotted line..

ShaunB

Hi all,

I'm just about to sign a contract to come to Dubai. Along with a couple of collegues. I've just wondering about a couple of things, hope you guys can help me.

How stable is the Dirum? I and another collegue are from the UK and have bills to pay back there. Our salary will be in local currency, so it's good to know to the Dirum is about plummet in value and devalue the worth in Sterling. Have there been any local events that could mean the Dirum going down in value or, hopefully, up in value?

Tax! If Dubai is tax free, are there any tax obligations to the UK?

Would much appreciate any advice and am looking forward to Dubai.

Cheers,
Shaun

arniegang

The AED is fixed against the dollar USD. Therefore your interest is the exchange rate between srerling and the USD.

As it happens at the moment the dollar is fairly strong against the pound, meaning a weaker exchange rate between the AED and the £.

As you will be paid in AED, whilst the USD is stong you will have a better exchange rate to convert back into sterling.

ShaunB

Hi,

Thanks. That helps a lot. I've been asking about currency fluctuation protection with my company, which basically means linking your salary to the US Dollar or Euro. They don't seem to be sure what I'm talking about. If they mentioned the AED is already linked to the USD, it would have answered the question. I probably don't need currency protection.

So, thanks. You're answer beat the answer from a major international companies HR. Well done.

Cheers,
Shaun

arniegang

your welcome Shaun.

the two rules make it easy to remember.

1 If you are a tourist its good to have a weak USD then the exchange rate is good between the AED and Sterling.

2. If you earn in AED and want to convert back to Sterling then a strong USD is good.

The short term view is that because interest rates have risen globally and in particular the US, the pound is weak against the USD at the moment, longer term it will start to stengthen

At the moment you will get around 6.4 AED to the Pound. Last summer it peaked at 7.1 when the dollar hit a low againt sterling. A few weeks ago it was 6.3. But make sure you shop around there can be huge difference in exh rates.

Unlike the UK, Banks in UAE do not give a favourable exch rate. The better rates are to be had in the malls etc.

onetickin

Whatever you decide to do, I would advise against trying to play the market as advertised by the ocassionally new member on this site, such as hemufx-

http://www.dubaiforums.com/viewtopic.php?t=6129

But, then again it's your choice.

ShaunB

Ok. Onetickin, I'm not at looking at playing the market, just interested in making sure the currency I'm being paid in will be worth something back home or elsewhere.

Arniegane, by what you've said and the (little) research I've done. The currency is fairly stable. I think my collegues and I can all handle a few percentages fluctuation, it's not likely that I'll be getting my salary delivered to me in wheel barrows, (similiar things have happened to expats elsewhere!), so I'm happy. Whenever you go abroad you have to accept some sort of risk but worth checking what sort of risk. I don't think there's going to be too much risk in Dubai.

Thanks for the help
Shaun

arniegang

Shaun

Its not a major issue at the moment the fluctuation is minimal currently. But always keep an eye on the dollar.

Mind you i been saying this myself, i had a stash in my bank in dubai and have whittled it down to almost nothing, meanwhile my sterling stash is waiting to be converted back to AED, and over the last few months i have been saying, it will improve - It hasnt

Im gutted really - i should have cashed moore up last summer when i was getting 7.1 AED to the pound.