UAE Salaries To Fall; Corporate Tax Changes; Top Dubai Real Estate Areas; Drone Deliveries Launched – 10 Things You Missed This Week

Also making the news have been changes to Saudi Arabia’s career opportunities for engineers, Dubai real estate and the launch of the UAE’s first licensed lottery.

Catch up with 10 of the biggest stories of the past week, as selected by Arabian Business editors.

UAE salaries to decrease as expat numbers surge: Report

UAE is currently experiencing a boom in expat relocation as workers and investors continue to flock to the region. Due to the rising influx of expats, salaries and benefits offered by companies is forecast to decline next year, according to the latest Robert Half salary guide.

Less competitive salaries and benefits are impacting those already working in the UAE, resulting in the lack of opportunity for job changes. This can be beneficial for companies, contributing to rising retention rates, however, chances of declining productivity and employee dissatisfaction is high.

The report revealed that although demand for talent with UAE experience is often preferred, companies are having to compromise due to budget restraints.

Saudi Arabia approves new pay scale for engineers

Saudi Arabia has approved a new pay scale for engineers as it looks to boost employment in the sector.

The approval was confirmed at a Cabinet meeting chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister. The Ministry of Human Resources said the engineering job salary scale will come into effect as of December 31, 2024.

The engineering pay scale targets government employees who hold engineering jobs according to the Saudi Unified Classification of Professions and are on the general employee salary scale. It targets workers with a bachelor’s degree in one of the engineering specialisations from Saudi or recognized universities.

‘Rent Now, Pay Later’ trend shifts Dubai rental market, changing tenant-landlord relations

The property rental market in Dubai is seeing a transformative shift, with the new ‘Rent Now, Pay Later’ (RNPL) mode of payments gaining fast traction with both tenants and house owners, helping rental services firms offering the payment option to gain market share significantly, industry insiders said.

The trend is also leading to higher tenant retention in the city, as the new payments mode enables better cash flow management for tenants, aligning with their monthly income cycle, while house owners get to maintain their preferred payment schedules.

While rental services ventures such as Keyper which are in the forefront to promote the RNPL mode are said to be fast gaining market share, several other firms are learnt to be readying plans to get on to the bandwagon.

UAE corporate tax hike to fuel influx of multinational companies flocking to freezones

The UAE’s move to hike corporate tax is anticipated to trigger large-scale shifting of multinationals and corporate biggies – already operating and planning new entries – to the various economic free zones in the country, experts said.

The country, however, could expect to emerge as a research and development hub, besides witnessing a fresh round of top talent influx, as companies are expected to tap tax refund provisions in the new corporate tax proposal to the optimum potential.

The UAE announced hiking of corporate tax – Domestic Minimum Top-up Tax (DMTT) – to 15 per cent from the existing 9 per cent for multinational companies earning EUR750m or AED3bn and above in global revenues from January 1, 2025.

Dubai real estate: Top areas for residential sales revealed

Dubai’s real estate market continued to demonstrate remarkable resilience and robust growth in November, with the residential sector achieving a 15.4 per cent year-over-year increase and the commercial market recording a total sales value of AED9.2bn ($2.5bn), according to the latest report from Engel & Völkers Middle East.

The city’s residential sector recorded 12,695 sales transactions, and while the figure reflects a cooling off from October’s record-breaking figures, it underscores the market’s sustainable and steady growth.

The month also saw a modest 0.38 per cent increase in average prices, reinforcing the market’s continued uptrend. An increasing appetite for affordability was evident, with properties under AED1m ($272,000) climbing to 32.2 per cent of sales, up from 26.7 per cent in October.

UAE launches major health insurance package for private sector from $87 per year

The UAE has introduced a major new insurance product for private sector employees and domestic workers.

With coverage available from AED320 ($87) per year it aims to make insurance affordable and boost the healthcare options for workers in the UAE.

The Ministry of Human Resources and Emiratisation (MoHRE) launched the basic health insurance package for private sector employees and domestic workers across the UAE who are not currently covered by any insurance, as part of the Health Insurance Scheme approved by the UAE Cabinet.

Massive 9-bedroom Dubai villa sold for $54.5m on ‘Street of Dreams’

A nine-bedroom mansion in Hills Grove, Dubai Hills Estate has sold for a record-breaking AED200m ($54.5m).

Dubai Sotheby’s International Realty announced the sale, which surpasses the firm’s previous record of AED145m ($39.5m) set less than two months ago. Dubai Sotheby’s International Realty represented both buyer and seller in the landmark transaction, with Senior Global Property Consultant Renit Shah acting for the buyer.

The fully furnished mansion, sits on a 37,700sq ft private plot and spans four levels, including a rooftop terrace and basement. Features include a large private garden and a unique boomerang-shaped swimming pool.

Dubai Police and RTA announce truck ban on major from January 1, 2025

Dubai authorities have announced a ban on trucks on a key road to Sharjah during peak evening travel hours.

The Roads and Transport Authority (RTA) and Dubai Police General Headquarters announced a restriction on truck movement along Emirates Road, specifically the section between Al Awir Street and Sharjah, during evening peak hours from 5.30pm to 8pm.

This restriction will take effect on January 1, 2025.

Drone deliveries launched in Dubai with Sheikh Hamdan making first order

Drone deliveries have launched in Dubai as city sees results of technical innovation for futuristic transport.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of the Board of Trustees of the Future Foundation (DFF), launched the Middle East’s first-of-its-kind drone delivery system at Silicon Oasis (DSO),

Sheikh Hamdan placed the first order using the drone delivery system through the platform from the Rochester Institute of Technology, one of the landing points within DSO’s drone delivery network. The order was successfully delivered from one of the take-off points in the community.

UAE Lottery results: Check winning numbers for $27m prize draw

The draw for the first UAE Lottery has taken place and winning numbers for the AED100m ($27m) grand prize have been revealed.

The historic draw is the first federally licensed lottery in the region and is operated by The Game LLC under licence from the General Commercial Gaming Regulatory Authority (GCGRA).

According to a social media report by the UAE Lottery on X, there were no winners of the AED100m ($27.2m) jackpot or AED1m ($272,000) second prize. However, it did conform the following winners:

• Four winners of the AED100,000 ($27,200) prize for matching five numbers plus the month number
• 211 winners of AED1,000 ($272)
• 28,858 winners of AED100 ($27) for other winning combinations