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Cost of Living UAE Report 2015 - 2016

Table of Contents

INTRODUCTION ............................................................................................................................................ 5

ACCOMMODATION ..................................................................................................................................... 7

2015 SUMMARY .................................................................................................................. 7 ABU DHABI RENTALS ............................................................................................................ 8 ABU DHABI RENTALS – YEAR-ON-YEAR PERCENTAGE CHANGE ........................................................ 18 DUBAI RENTALS ................................................................................................................. 23 DUBAI RENTALS – YEAR-ON-YEAR PERCENTAGE CHANGE COMPARISON ............................................. 36 SHARJAH RENTALS ............................................................................................................. 41 SHARJAH RENTALS – YEAR-ON-YEAR PERCENTAGE CHANGE COMPARISON .......................................... 45 AJMAN RENTALS ................................................................................................................ 48 UMM AL QUWAIN RENTALS ................................................................................................... 55 RAS AL KHAIMAH RENTALS ................................................................................................... 56 FUJAIRAH RENTALS ............................................................................................................. 64 RENTAL COMPARISON ACROSS EMIRATES .................................................................................. 66 FREEHOLD OVERVIEW ......................................................................................................... 67 ABU DHABI FREEHOLD ......................................................................................................... 68 ABU DHABI FREEHOLD – YEAR-ON-YEAR PERCENTAGE CHANGE COMPARISON ..................................... 77 DUBAI FREEHOLD ............................................................................................................... 82 DUBAI FREEHOLD – YEAR-ON-YEAR PERCENTAGE CHANGE COMPARISON ........................................... 99 AJMAN FREEHOLD ............................................................................................................. 104 UMM AL QUWAIN FREEHOLD ................................................................................................ 107 FUJAIRAH FREEHOLD .......................................................................................................... 108 COMMUNITY FEES & MAINTENANCE CHARGES ........................................................................... 109

EDUCATION .............................................................................................................................................. 111

OVERVIEW ...................................................................................................................... 111 COST OF EDUCATION IN ABU DHABI ....................................................................................... 113 COST OF EDUCATION IN AL AIN ............................................................................................ 115 COST OF EDUCATION IN DUBAI ............................................................................................. 117 COST OF EDUCATION IN SHARJAH .......................................................................................... 119 COST OF EDUCATION – CURRICULUM COMPARISON, BY EMIRATE .................................................... 121 COST OF EDUCATION – EMIRATE COMPARISON, BY CURRICULUM .................................................... 125 COST OF DAYCARE ............................................................................................................ 129 HOME AND AWAY .............................................................................................................. 132

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HEALTHCARE ............................................................................................................................................ 134

HEALTHCARE SUMMARY 2015 .............................................................................................. 134 IMPLEMENTATION PHASES OF THE MANDATORY HEALTH INSURANCE LAW ......................................... 137 INSURANCE ANALYSIS & COSTS ............................................................................................ 138 INSURANCE PREMIUMS – 4 YEAR TIME SERIES ANALYSIS ............................................................. 139 COST OF DRUGS ............................................................................................................... 141 COST OF HEALTHCARE – PREMIUM LEVEL ................................................................................ 142 COST OF HEALTHCARE – MID-LEVEL HOSPITALS ........................................................................ 143 COST OF HEALTHCARE –SPECIALIST CLINICS ............................................................................ 144 COST OF DENTISTRY .......................................................................................................... 145

HOUSEHOLD AND UTILITIES ............................................................................................................... 147

HOUSEHOLD GOODS OVERVIEW ............................................................................................ 147 THE HOUSEHOLD BASKET .................................................................................................... 149 COST OF UTILITIES ........................................................................................................... 150 COST OF LAUNDRY, DRY CLEANING & POSTAL SERVICES .............................................................. 151

LIFESTYLE ................................................................................................................................................... 153

COST OF BEACH CLUBS ....................................................................................................... 153 COST OF DINING .............................................................................................................. 154 COST OF GOLF CLUBS ........................................................................................................ 155

TRAVEL AND TRANSPORT .................................................................................................................... 157

BUSINESS TRAVEL & HOTEL COSTS ........................................................................................ 157 3-STAR HOTEL COSTS ........................................................................................................ 159 4-STAR HOTEL COSTS ........................................................................................................ 160 5-STAR HOTEL COSTS ........................................................................................................ 161 INTERNATIONAL HOTEL COSTS – STARWOOD HOTELS INDEX ........................................................ 162 TRAFFIC FINES ................................................................................................................. 163 CAR COSTS IN THE UAE ..................................................................................................... 165 PUBLIC TRANSPORT COSTS IN THE UAE .................................................................................. 166 LOCAL & GLOBAL PUBLIC TRANSPORT COSTS – THE METRO INDEX ................................................. 168 THE COST OF AIR TRAVEL ................................................................................................... 170 FUEL PRICES .................................................................................................................... 171

BUSINESS SET-UP & LICENSES ............................................................................................................ 173

DOING BUSINESS IN THE UAE – A GLOBAL COMPARISON ............................................................. 173 EASE OF DOING BUSINESS IN THE UAE TIMELINE – 2008 TO 2015 ............................................... 174

COMMERCIAL PROPERTY ..................................................................................................................... 178

COMMERCIAL PROPERTY OVERVIEW – DUBAI & ABU DHABI .......................................................... 178 ABU DHABI COMMERCIAL RENTAL RATES ................................................................................. 180 DUBAI COMMERCIAL RENTAL RATES ....................................................................................... 182 DUBAI COMMERCIAL FREEHOLD............................................................................................. 184

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JOB MARKET .............................................................................................................................................. 187

JOB MARKET 2015 & 2016 ................................................................................................. 187 2015/ 2016 SALARIES SUMMARY ......................................................................................... 190 FINANCE & FINANCIAL SERVICES STAFF – 2015/ 2016 SALARIES .................................................. 193 FINANCE STAFF – 8 YEARS OF TRENDS ................................................................................... 197 LEGAL STAFF – 2015/ 2016 SALARIES ................................................................................... 198 LEGAL STAFF – 8 YEARS OF TRENDS ...................................................................................... 199 HUMAN RESOURCES STAFF – 2015/ 2016 SALARIES .................................................................. 200 HUMAN RESOURCES STAFF – 8 YEARS OF TRENDS ..................................................................... 202 INFORMATION TECHNOLOGY STAFF – 2015/ 2016 SALARIES ........................................................ 203 INFORMATION TECHNOLOGY STAFF – 8 YEARS OF TRENDS ........................................................... 205 ENGINEERING STAFF – 2015/ 2016 SALARIES .......................................................................... 206 SUPPLY & LOGISTICS STAFF – 2015/ 2016 SALARIES ................................................................ 209 SUPPLY & LOGISTICS STAFF – 8 YEARS OF TRENDS .................................................................... 211 SALES & MARKETING STAFF – 2015/ 2016 SALARIES ................................................................ 212 MEDIA & PR STAFF – 2015/ 2016 SALARIES ........................................................................... 215 RETAIL STAFF – 2015/ 2016 SALARIES .................................................................................. 218 TOP-LEVEL MANAGEMENT – 2015/ 2016 SALARIES ................................................................... 219 BUSINESS SUPPORT STAFF – 2015/ 2016 SALARIES .................................................................. 220 INDUSTRY SPECIFIC - AVIATION – 2015/ 2016 SALARIES ............................................................ 221 INDUSTRY SPECIFIC - INSURANCE – 2015/ 2016 SALARIES .......................................................... 222 INDUSTRY SPECIFIC - OIL & GAS – 2015/ 2016 SALARIES .......................................................... 223

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2 Bedroom Apartments Annual Apartment Rental Cost Sharjah

Name of Area Q4 2014 (AED) Q4 2015 (AED)

% Change Min Max Average Min Max Average

Al Rolla 40,000 43,000 41,700 27,429 57,391 36,155 -13%

Qassimia 35,000 60,000 46,300 24,615 44,286 38,459 -17%

National Paints Ara 38,000 47,000 42,500 24,615 44,286 38,459 -10%

Al Khan 42,000 80,000 55,000 32,143 48,889 38,605 -30%

Al Nahda 35,000 72,000 51,700 27,407 61,111 46,164 -11%

Sahara Centre Area 42,000 70,000 60,500 N/a N/a N/a N/a

Al Buhaira Corniche 40,000 70,000 48,800 37,000 68,000 42,000 -14%

Al Majaz 35,000 75,000 51,400 26,250 66,250 45,148 -12%

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

Al Rolla Qassimia NationalPaints Ara

Al Khan Al Nahda SaharaCentreArea

Al BuhairaCorniche

Al Majaz

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Y-O-Y Average Annual Rent for 2-Bedroom Apartments in Sharjah

Q4 2014

Q4 2015

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60,000

110,000

160,000

210,000

260,000

310,000

360,000

410,000

460,000

510,000

560,000

2008 2009 2010 2011 2012 2013 2014 2015

Average Annual Rental for 4-Bedroom Villas in Dubai Over Time (AED per annum)

Al Warqa

Mirdif

Al Barsha

The Meadows

Arabian Ranches

Jumeirah

Jumeirah Islands

Umm Sequim

Palm Jumeirah

70,000

170,000

270,000

370,000

470,000

570,000

670,000

770,000

2008 2009 2010 2011 2012 2013 2014 2015

Average Annual Rental for 5-Bedroom Villas in Dubai Over Time (AED per annum)

Al Warqa

Al Barsha

Arabian Ranches

Jumeriah

Umm Sequim

Palm Jumeirah

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3 Bedroom Villas Villa Freehold Cost Abu Dhabi

Name of Area Q4 2014 (AED) Q4 2015 (AED) Annual %

Change Min Max Average Min Max Average

Hydra Village 1,350,000 1,550,000 1,435,000 1,450,000 1,550,000 1,500,000 5%

Al Reef Villas 1,900,000 2,300,000 2,000,000 1,850,000 2,000,000 1,925,000 -4%

Al Raha Gardens 2,700,000 3,500,000 3,145,000 2,750,000 3,200,000 2,975,000 -5%

Al Raha Beach 2,600,000 5,000,000 4,338,000 2,800,000 3,500,000 3,150,000 -27%

Saadiyat Island 7,000,000 8,100,000 7,583,000 6,800,000 8,000,000 7,400,000 -2%

100,000

1,100,000

2,100,000

3,100,000

4,100,000

5,100,000

6,100,000

7,100,000

8,100,000

Hydra Village Al Reef Villas Al Raha Gardens Al Raha Beach Saadiyat Island

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Y-O-Y Average Freehold for 3-Bedroom Villas in Abu Dhabi

Q4 2014 (AED) Q4 2015 (AED)

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Cost of Education – Curriculum Comparison, by Emirate

Please see below for a comparison of the cost of various educational curriculums, specifically for Kindergarten and Year 12. There’s a comparison for 3 emirates - Dubai, Abu Dhabi and Sharjah, as well as Al Ain. Each graph shows average annual school fees in United Arab Emirates Dirhams (AED):

AED 0

AED 10,000

AED 20,000

AED 30,000

AED 40,000

AED 50,000

AED 60,000

AED 70,000

AED 80,000

IB Indian UK US

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A 3 - Y E A R O U T LO O K

Lowest KG 2013/2014 Lowest KG 2014/2015 Lowest KG 2015/2016

Highest Year 12 2013/2014 Highest Year 12 2015/2016 Highest Year 12 2014/2015

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AED 4,455

AED 17,400

AED 12,000

AED 30,000

AED 6,410

AED 22,000

AED 3,800

AED 9,369

AED 0

AED 5,000

AED 10,000

AED 15,000

AED 20,000

AED 25,000

AED 30,000

AED 35,000

Lowest KG Highest Year 12

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Abu Dhabi Dubai Sharjah Al Ain

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Insurance Premiums – 4 Year Time Series Analysis

The time series line graph below shows a 4-year trend of fluctuating insurance costs from both local & global providers, for individuals & families:

2,000

12,000

22,000

32,000

42,000

52,000

62,000

Q4 2012 Q4 2013 Q2 2014 Q4 2014 Q4 2015

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Individual - local insurer

Individual - global insurer

Family - local insurer

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Cost of Dentistry

To illustrate whether the price of treatment in the UAE for both out and in-patient services has changed since our last report in November 2014, we have provided below a table that summarises the cost of various treatments by type; showing a 3-year comparison for each individual treatment at international premium-level dentistry clinics:

Medical & Healthcare - Cost per Treatment & Service

Dentistry - International Premium Level Q4 2013 (AED) Q4 2014 (AED) Q4 2015 (AED)

Routine Check- up, international western dentists 200 - 600 175 - 425 60 - 360

Fillings 400 - 1,000 545 - 800 510 - 1,230

Root Canal Treatment 2,500 - 10,000 1,600 - 4,000 620 - 4,100

Scaling and Polishing 400 - 1,000 450 - 680 310 - 1,230

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International Hotel Costs – Starwood Hotels Index

Below we compare the cost of booking an equivalent standard hotel room at different Starwood hotels across the world’s major cities. The date the price was recorded has remained as July 15th to ensure a fair comparison against prices taken from previous years’ reports:

Starwood Hotels - International Index (Price per Night)

Name of Hotel City Local Cost US$

Le Méridien Abu Dhabi Abu Dhabi AED 679 $185

Sheraton Doha Resort & Hotel Doha QAR 1,049 $288

Le Méridien Dubai Dubai AED 977 $266

Le Méridien Mina Seyahi Dubai AED 999 $272

Le Méridien Cyberport Hong Kong HKD 1,550 $200

Sheraton Kuwait Kuwait City KWD 94 $311

Le Royal Méridien Piccadilly London GBP 258 $391

Sheraton Bahrain Manama BHD 55 $146

Le Royal Méridien National Moscow RUB 19,860 $299

Sheraton Oman Muscat N/a N/a

Le Parker Méridien New York USD 549 $549

Le Méridien Etoile Paris EUR 277 $312

Sheraton Riyadh Riyadh SAR 1,335 $356

$185

$288 $266 $272

$200

$311

$391

$146

$299

$549

$312 $356

Starwood Hotels - International Index (Price per Night)

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Rental Price of Unfitted Office Space in Abu Dhabi (Non Freezone)

Name of Area Average Q3 2013

(psqf) Average Q3 2014

(psqf) Average Q3 2015

(psqf) Annual % Change

Mussafah AED 112 AED 102 AED 109 7%

Airport St AED 132 AED 117 AED 133 14%

Al Muroor/Mushrif AED 133 AED 129 AED 117 -10%

Al Bateen/Khalidiyah AED 102 AED 115 AED 99 -14%

Al Markaziya AED 110 AED 112 AED 101 -10%

Hamdan Rd AED 126 AED 111 N/a N/a

Salam St AED 124 AED 113 AED 148 31%

Corniche AED 130 AED 107 N/a N/a

Tourist Club Area AED 93 AED 108 AED 80 -26%

Al Reem Island AED 107 AED 125 AED 159 27%

Grand Mosque Area AED 135 N/a N/a N/a

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Annual Salaries in UAE Q4 2015 - USD Per Annum

Financial Services Roles

Firm Size

0 - 2 Years of Experience

2 - 5 Years of Experience

5 - 7 Years of Experience 7 - 9 Years of Experience 10+ Years of Experience

Min Max Median Min Max Median Min Max Median Min Max Median Min Max Median

Chief Compliance Officer M/L

firms 259,000 288,000 273,500 270,000 314,000 292,000

Head of Compliance M/L

firms 187,920 202,000 194,960 197,000 226,800 211,900

Compliance Analyst M/L

firms 38,880 51,840 45,360 48,600 61,560 55,080

Relationship Director M/L

firms 178,200 197,640 187,920 187,920 213,840 200,880

Relationship Manager M/L

firms 77,760 87,480 82,620 100,440 116,640 108,540 103,680 119,880 111,780

Head of Corporate Banking

M/L firms

243,000 278,640 260,820 265,680 311,040 288,360

Head of Wholesale Banking

M/L firms

259,000 362,880 310,940 372,600 388,800 380,700

Head of Collections and Recovery

M/L firms

178,200 194,400 186,300 184,680 213,840 199,260 220,320 226,800 223,560

Head of Retail Banking M/L

firms 236,520 255,960 246,240 268,920 314,280 291,600 330,480 356,400 343,440

Head of Branches M/L

firms 178,200 197,640 187,920 182,000 201,000 191,500 210,000 243,000 226,500

Head of Global Transaction Banking

M/L firms

226,800 240,000 233,400 231,500 258,000 244,750 249,000 291,600 270,300

Head of Internal Audit M/L

firms 155,520 174,312 164,916 194,400 220,320 207,360 255,960 275,400 265,680

Internal Audit Manager M/L

firms 81,000 103,680 92,340 126,360 145,800 136,080

Product Controller M/L

firms 64,800 100,440 82,620 81,000 124,740 102,870

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Human Resources Staff – 8 Years of Trends

In the above chart, we have used the average across 7-10+ years of experience for all senior roles, and for junior-level & mid-level positions, we used an average across 2-5 to, and 5-7 years of experience, respectively. This represents the market average across medium to large size firms.

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014-Q2 FY2014-Q4 FY2015-Q4

Average Annual Salaries in USD for Selected HR Roles Over Time

HR Director

HR Manager

Training andDevelopmentManager

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Industry Specific - Insurance – 2015/ 2016 Salaries

Please see below for salary ranges within the insurance sector, based on company size & years of experience. The below figures are based on annual salaries in US$.

Annual Salaries in UAE Q4 2015 - USD Per Annum

Insurance Roles Firm Size

0 - 2 Years of Experience

2 - 5 Years of Experience 5 - 7 Years of Experience

7 - 9 Years of Experience

10+ Years of Experience

Min Max Median Min Max Median Min Max Median Min Max Median Min Max Median

Actuarial Analyst M/L firms

71,280 106,920 89,100

Insurance Agent/Broker M/L firms

16,200 21,060 18,630 32,400 43,200 37,800

Claims Officer/Processor M/L firms

14,040 15,660 14,850 15,390 28,080 21,735

Claims Manager M/L firms

18,360 24,300 21,330 36,720 48,600 42,660

Wealth Manager M/L firms

21,330 24,840 23,085 47,520 55,620 51,570

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