The Asia Chronicles: The Dubai Life
[Ed. note: This post is authored by Evan Jowers and Robert Kinney of Kinney Recruiting -- sponsor of the Asia Chronicles, and an ATL advertiser. Kinney has made more placements of U.S. associates and partners in Asia than any other firm in the past two years. You can reach them by email: asia at kinneyrecruiting dot com.]
Evan here. I am writing to you from the Emirates Towers in Dubai, in between meetings with law firm clients (today those firms happen to be Baker Botts, Curtis Mallet and Vinson & Elkins). Last week, we did not venture past the Burj Al, the most famous and symbolic building in Dubai, but a place that you would likely go to only rarely, if at all, if you lateral to Dubai. Today, I am going to give a very basic and broad overview of life in Dubai for a US associate at a major law firm. I am writing off the cuff here, so to speak, being a bit swamped. I will just focus on information and save you this time from my attempts at humor and entertainment. As always, please feel free in the comments area to ask for further information or clarification on any subject. In the near future we will deliver a post that is more focused on life inside the Dubai firms, including practice area focuses and general office culture.
Housing - Expect to spend about $3,500 US per month (if single). This will be a nice and spacious luxury 2br apartment. All of the residential buildings fall into the category of new to brand new and there are plenty of nice amenities and views. A negative is all the construction going on. For example, earlier this year my wife and I spent a week at an apartment in Marina (a new high rise residential development in swanky spot, close to the beach and on a waterway similar to the intracoastal in South Florida, with a large marina, but with 50 to 100+ story buildings all about). It was a very nice building and close to shops and restaurants and the marina walk, but there was construction going on 24 / 7, and it really kicked in at 7am, so sleeping in was not an option (neither was relaxing on the spacious balcony with ocean and marina views, unless you enjoy watching high rise cranes move about and the soothing sounds of a jack hammer). The other residents of the building were seemingly 95% young professionals, from Europe, Australia and USA (this is probably the case at just about any new reasonably priced Marina or Old Town building). Many major law firm associates seem to live in Old Town (which is ironically very new), near the base of the Burj Dubai (tallest building in the world (near completion).
Housing allowances - If you come to Dubai expecting the wonderfully large housing allowances of Hong Kong or Tokyo, for example, you are going to be mighty disappointed. You can expect no more than $30,000 US per year and most firms figure out the housing / expat / cola allowance on case by case basis for each lateral hire or internal transfer (in other words, firms will make sure you come out ahead of your take home pay from whichever market you are being hired from). At most firms, you will need to negotiate your cola. Keep in mind though that there is 0% tax in Dubai and thus US persons will pay no income taxes on the first $87,500 earned each year (number will go up slightly each year). Further, US persons can spend up to approx. $42,000 on housing each year tax free. Thus there is, in effect, a 0% tax liability on the first approx. $130,000 earned annually. However, it is the 0% income tax in Dubai that drives down the cola / expat / housing packages for associates. This is because firms can and routinely do bring in associates from England, Canada, Australia and China, among other nationalities (many of these have US JDs as well) who are obviously thrilled with 0% income tax (who wouldn't be?) and don't have any need for any cola adjustment.
Read more, after the jump.
Night life / Restaurants - I have spent about 3 months in '08 in Dubai thus far and have sampled the nightlife / restaurant scene enough to have an opinion I suppose. I find the restaurants to be excellent on the high-end, especially for seafood (especially my favorite, Pierchic, an end of the pier spot that I am on the way to in above photo) but in the mid-range grab a bite to eat in between meetings category, there is room for improvement. There are world-class lounges and clubs with top DJs in the world routinely flying in. Almost all of the hotspots, with a notable exception or two, are in the top hotel resorts, as that is where most of the liquor licenses are. Thus nights on the town are usually at a beach resort. Everything shuts down at 2am and during Ramadan month most places are closed. In general, Dubai is a great place to be a single young professional.
Misc. Lifestyle basics - On the plus side, beautiful beaches, sunny weather, close proximity to great diving / snorkeling spots, lots of family entertainment attractions, extremely low crime rate, busy airport with lots of quick, cheap and fun getaways in the Middle East and Europe available, about 90% expat population, very friendly people, beautiful buildings, interesting tourists passing through all the time, and excitement of being in cutting edge and truly unique environment. On the negative side, the sunny weather is way too sunny in the summer (with it being so hot that it is difficult to simply walk down the street); taxi lines at shopping malls, office buildings and other crowded places are very long; they keep building more beautiful buildings 24 / 7 and construction noise and dust can be ever present in some parts of town.
Transportation - A car is a must, although they will eventually finish the world's biggest raised metro system (but still will need a car). Cars seem to be cheaper here for some reason. Most firms have a couple (or more if big office) BMW 7 type cars with drivers on hand to take associates to meetings (and for partners' meetings and personal use). There is no car service like in NYC, but parking spots are paid for by firms.
Hours - I am sure I will get comments suggesting that the hours are very high for particular persons, but it is my take, based on my knowledge of the hours of many different major law firm attorneys in the market, that the hours are significantly lower than a normal NYC market (when 100+ year old leading investment banks are not dissolving). At the newer US firms here, the hours for associates can be as low as 1300 hours (while remaining in great standing at their firms), but that will be changing as more business is brought in. Associates in Dubai are expected to be part of the marketing / client development effort much more so than in US markets. It is very much an entrepreneurial atmosphere and those that get in on the ground floor now will have a lot of benefits, including being a part of building of a new office, developing major client relationships and usually less hours for a year or two (although some associates I understand would rather work more). Keep in mind though that in small overseas offices if an associate or two leaves unexpectedly, just as heavy deal flow is coming in, their former colleagues could be understaffed and overworked for a while (it can take months to replace associates).
Earlier: Prior installments of the Asia Chronicles (scroll down)
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The Asia Chronicles are sponsored by Kinney Recruiting. You can reach them by email at asia at kinneyrecruiting dot com.
(58) Comments
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yet again. if you are upset that you missed your chance to live on a plantation and be served by slaves, dubai may be the place for you. otherwise, you should stop and think about how all of this 24 hour construction is done. http://www.nytimes.com/2006/03/26/international/middleeast/26dubai.html?scp=2&sq=dubai%20india&st=cse
That photo is really informative.
Evan -- what type of exit opportunities are there after spending a few years at a firm in Dubai? Are there in-house jobs available for more senior associates?
What about for associated with wife & kids? Family friendly place?
What about for associate with wife & kids? Family friendly place?
can a 1L get a sa job in either hk or dubai? seriously, it would be awesome.
-nervous T-10 1L
What oppertunities for a 2L as a summer oppertunity?
What oppertunities for a 2L as a summer oppertunity?
what slanted reporting... totally kills any cred or truth that may be in other parts of this advert for you to claim that dubai, a islamic emirate with 'all the bars in hotels', no booze or none-prostitute women to speech of as a 'good place for young professionals' socially.
HA
Evan, HofstraMagna here. I know that you are out globetrotting and you probably haven't had time to watch the presidential debates, but the next debate will be held at Hofstra. Do you think the presence of the debate will help in terms of placement in Dubai? Also, what kinds of opportunities are there in Dubai for recent Hofstra graduates?
Do any firms hire people right out of (US) JD programs? If so which ones and how can one get one's foot in the door. Thanks.
There are plenty of opportunities for HofsTTTra graduates. They involve getting on your knees, closing your eyes, and sucking a a hose-shaped item.
ya... advice for 1L/2Ls interested in entry level positions in dubai? summer possibilities?
what about with some of the more british focused firms... do they even look at US entry level associates?
(how much of the work of these dubai offices actually being done for saudi clients?)
hey Hofstra"magna" - is there even such a thing? The only work opportunities for Hofstra grads are at Bogart's.
While these posts are interesting, what's annoying is the lack of specifics about how to get these opportunities.
5, Evan here. Sure, there are exit options in Dubai. It is a market on the rise in many ways so there will likely be multiple times more in-house opportunities for biglaw senior associates in the next few years or so. Funds, banks, holding companies, others.
6, Evan here. I would say that Dubai is a more family friendly place than it is a singles hotspot, actually (and it is a good singles spot). There are two large waterparks - the award winning Wild Wadi at Jumeirah Beach and the new Aquaventure at Atlantis. Don't know how long it will take to build, but they are building an amusement park two times bigger than Disney World here. There are modern and fun outdoor and indoor gokart tracks. The biggest shopping mall in the world is about to open. There are 5 or so other very large shopping centers. You also have amazing snorkling and diving in Gulf of Oman a short drive away. The beaches in Dubai, on the Arabian Gulf are very family friendly. There is almost no crime here. Most importantly it is a great place for young children and teenagers to be exposed to different cultures, people from all over the world.
8, Evan here. It is possible to get 2L jobs in HK, but not happening yet in Dubai. To land in HK as a 1L summer would be very difficult as well. Being at a top 10 law school, just study hard and you will have great opportunities, notwithstanding the economy. Your 1L summer experience could take a hit by the economy, but you should be able to land a great 2L spot and permanent offer. I think in US markets there will be much less 1L summer associate hires this year (they were already hard to come by) but by all means send your resume around. Good luck!
13, Evan here. It is happening in Asia, but not more than rarely in Dubai.
Just don't make Sheikh Issa angry: www.uaetorture.com
17, Evan here. I am happy to discuss with you in detail how to get these opportunities in Dubai. In general, firms are very selective out here, even more so than their home offices in US in many cases. Speaking Arabic is a bonus, but not at all required, so most US associates that land out here at the top US and British firms are English only and have very impressive resumes.
17, Evan here. I am happy to discuss with you in detail how to get these opportunities in Dubai. In general, firms are very selective out here, even more so than their home offices in US in many cases. Speaking Arabic is a bonus, but not at all required, so most US associates that land out here at the top US and British firms are English only and have very impressive resumes.
Just don't make Sheikh Issa angry: www.uaetorture.com
15, Evan here. British firms are not so interested in junior US associates. They usually only look to hire US associates who have a few years+ experience and in general the British firms hire only UK qualified associates in Dubai and Middle East. Don't get me wrong, as they do hire US associates, but no many, are very selective when doing so, and not at the entry and very junior level. There are lots of reasons for this...
I'm no international tax expert, but it is my understanding that U.S. citizens are required to pay taxes on all income, regardless of where they are working. As such, I'm not sure about your statement that "US persons will pay no income taxes on the first $87,500 earned each year". Please let me know if I am missing something here.
27, take a look at IRS Publication 54 and Form 2555. I'm no tax expert either, but it takes about 30 seconds of research to confirm that Evan is essentially correct. (The exemption amount for 2007 was $85,700.)
Evan,
Can you expand on the professional experience and skills most firms are looking for? Is a broad base of US corporate experience enough, or is it limited to a few sub-specialties?
Also any benefit in being admitted both in the US and the UK?
29, Evan here. A broad base of US corporate is fine for Middle East. If you are 4+ years though then some firms (but not all) may be looking for more specialization in certain areas, such as private equity, M&A, project finance, finance, and real estate finance, as examples. 3 and less years of experience, very broad base of corporate is usually fine. Being admitted in UK and US is a big advantage actually, much more so in the Middle East markets than Asia.
Evan, do you see the COLA/housing allowance issue with firms in Dubai changing anytime soon? It seems that with the global economic slowdown, firms will be able to shift their associates from less productive offices to their Middle East offices, so because of supply and demand it makes me think that we are a long way off from COLAs in the region.
Evan, why aren't the firms interested in junior level associates from the US? Don't they regularly hire solicitors in training from the UK?
Evan, why aren't the firms interested in junior level associates from the US? Don't they regularly hire solicitors in training from the UK?
28, thanks. 27.
"US Persons". Is that like "Americans"? That's not really a grammatical mistake, just ridiculous.
"US Persons". Is that like "Americans"? That's not really a grammatical mistake, just ridiculous.
36: Dude, get real. Americans can be anyone from North or South America. So U.S. Persons would be the correct way to say it.
Evan, why aren't the firms interested in junior level associates from the US? Don't they regularly hire solicitors in training from the UK?
Evan, why aren't the firms interested in junior level associates from the US? Don't they regularly hire solicitors in training from the UK?
Evan, why aren't the firms interested in junior level associates from the US? Don't they regularly hire solicitors in training from the UK?
Evan, why aren't the firms interested in junior level associates from the US? Don't they regularly hire solicitors in training from the UK?
36, Evan here. US Persons is typically used when classifying whether someone pays taxes in US, is a US Person for tax purposes. For example, a green card holder is a US Person, but is not an American. Just typically tax legalise language. Sorry to confuse. I used to be a tax attorney, but it has been a while...
38, Evan here. The top end US firms that are showing up in Dubai are looking for junior US associates (although being very selective). I happen to have 3 class of '07s interviewing in Dubai at present. You are right in that the British firms in the market, as well as some of the slightly less prestigous US firms, do hire juniors out of UK more than US.
31, Evan here. There will most likely never be a 60-80k cola in Dubai, like there is in HK, for example. However, there is a 25-35k cola amount that is settling into place at top US firms in Dubai. It is mostly handed out on case by case basis and can differ slightly between associates at same firm. Only a couple of firms that I am aware of have specific policy to pay certain cola amount to each associate. If you land at a top US firm in Dubai, you can pretty much count on the 25-35k range for cola, but not more. The global crisis is not really affecting cola amounts at top US firms abroad. It is affecting an associates chances of being hired to begin with, but not compensation amounts.
http://www.ianfraser.org/?p=656
I would not be planning my Dubai postings just quite yet. The emirate is heavily indebted, and with this credit crunch it is in big trouble.
45, Evan here. I dissagree with you on that one. Yes, Dubai has always had a lot of debt (whereas oil rich Abu Dhabi is not), but the credit crunch does not have Dubai in trouble, at least with respect to all the financing that is still going on for projects there. There is still a lot of foreign investment in Dubai and Middle East. Dubai has not been all that much tied into investment from US markets and thus are not as severely affected as other parts of the world. We shall see though...
Nakeel has to renegotiate 3.5 billion dollars of debt alone this year. Unless Abu Dhabi aggressively pumps oil money into Dubai where are they going to get that cash? What is going to happen to all that Russian investment when their stock market has collapsed in half? Models (or hookers) and Bottles are over.
47, Evan here. Nakheel must not be too concerned, as they are forging ahead on what will be the newest tallest building in the world (38% taller than what is now the tallest building in world, the Burj Dubai), among other projects they are pushing forward. Just announced at Cityscape 2008 last week.... The global credit crunch will undoubtedly affect Dubai, but not nearly as much as in most other parts of the world. Banks are still financing Dubai mega projects. With that said, regardless of whether the global crisis will affect new projects, most in Dubai believe that the real estate market there should have a correction of about 15% or so, but it has not happened yet. From a big firm work perspective, project finance work rolls on though...
Evan, could you please answer my question as to why firms are not interested in junior associates from the US? Is it because US associates are paid more than UK trainees? Thanks.
Evan, could you please answer my question as to why firms are not interested in junior associates from the US? Is it because US associates are paid more than UK trainees? Thanks.
50, Evan here. Top end US firms in Dubai are interested in junior associates from US, although they are very selective. However, British firms and some US firms do prefer UK juniors because of a) the compensation (with re to base, bonus and some expat / cola for US assoicates); and b) because a lot of the transactional drafting in Middle East is done in British style. The top end US firms in Dubai, like Gibson Dunn, Latham, V&E, Baker Botts, King & Spalding, Weil (opening soon), for example, do hire junior US associates and do not favor UK juniors over US juniors.
Nakeel anouncing another giant project does not equal it getting financing for it. There is a reason Dubai is asking for a 5 billion transfer from Abu Dhabi. And its not because the Al Maktum family is bored.
Also, Weil is not opening in Dubai. It is looking at Abu Dhabi.
I'm not tryin to gripe on you because I usually find these posts pretty informative but I think its fair to say that you are over selling Dubai way way too much. The golden moment was from about 03 to the end of this summer.
Now Dubai better hope that people with lots of cash are still willing to spend money on it rather than on some other playground...
Your points are well taken,, but I am not trying to sell Dubai to anyone, as I will not work with any attorney that is not already fairly certain they want to move a particular market. Although I understand Weil is likely to open in Dubai, I would not be so surprised if they chose Abu Dhabi instead. It is a short drive away, not that big of a deal. Re globalcredit crunch problems that are hurting every market, including Dubai and MIddle East, so far there seems to still be financing available there for projects (although the UAE has been injecting cash into their banks as well). There is a lot of cash in reserve all over the world and Dubai and the Middle East may get a bigger share of investment than before the global crisis. This includes investment from within the ME, as Sovereign Wealth Funds and wealthy ME individuals are looking for places to invest and very hesitant to continue to invest in US and other Western markets. The 5 billion transfer from Abu Dhabi is not such a big deal. They are sister states of the UAE anyways and Abu Dhabi is extremely oil rich. It is a relatively small amount in the big scheme of things. Office occupancy is, at least according to figures from a few months ago, at 98% in Dubai. There is construction going on around the clock. There are 250 new civil construction projects planned that are at bidding stage. Those are worth 120 billion US. The new tallest building planned by Nakheel is a 38 billion US project. I realize that it is impossible to predict what can happen in the crazy market we are in today, but so far things are seemingly continuing to go well in Dubai and the UAE in general. If the US and other western markets go into a deep recession and cannot ease the credit crunch crisis going on, then sure, eventually the ME can't possibly not be affected and Dubai, unlike other markets in the ME, is heavily in debt. These mega projects have to be financed and eventually, if problems remain, credit will run dry for Dubai as well (rather than simply the challenge that it is now). But for now, the ME (including Dubai) is considered a safer investment and finance risks than in most other major markets of the world. Here is a recent quote from this week at the Super Return private conference in Dubai:
Bahrain and London-listed Investcorp's president and chief operating officer Gary Long: “…while the Western private equity environment is very difficult, in the Gulf, it continues to grow and mature and prosper. It is the golden age for private equity in the Gulf. I'm very bullish about opportunities for private equity in the Gulf."
Here is quote from Cityscape last week:
According to Peter Riddoch, CEO of DAMAC Properties Dubai, “We believe Dubai has the potential to become the most expensive commercial real estate destination in the world in the coming years. The demand and prices for office spaces is increasing; according to a recent report by Colliers International, Dubai is ranked third in terms of global office real estate construction activity, behind Moscow and Shanghai.” The office occupancy rate in Dubai has been reported to be over 98% in ’08.
“The bad market situation in the US and Europe will bring even more investors to this part of the world,” said Mohammad Khazami, general manager of the Dubai branch of Doha, Qatar-based developer Al Madar. You are living in a region full of money. ... And those people are ready to spend.”
I am not an economist but it is clear to most in Dubai, including even me, that there is likely a real estate bubble and there will need to be a correction. Most experts say 15 to 20% correction, although there are some experts who predict no correction.
In any event, my law firm clients are busy in Dubai and hiring, selectively, US and UK qualified associates. It certainly is an alternative to consider, as the US markets are in bad shape.
There is a lot of cash in reserve all over the world and Dubai and the Middle East may get a bigger share of investment than before the global crisis.
Evan here. Before I am crucified for that statement, I just wanted to clarify that what I mean by a lot of cash in reserve is that investors are pulling their funds out of the market and thus there is a lot of cash on the table, sort of speak, ready to be invested, but investors are hesitant to invest in US and other established markets. The Middle East can potentially see an influx in foreign investment, as well as more investment from cash rich sources within the ME, due to the ME arguably being a more safer place to invest at present, relative to the western markets. That is one way of looking at things. Of course, if the US can't fix the credit crisis for the long-term then ME could have big problems getting financing as well. It is already a challenge in the ME to get financing for new mega projects, but from what I understand the financing for even such mega projects in the ME is still occuring. Further, there is a tremendous amount of cash in reserve in the ME and ME investors, including Sovereign Wealth funds are looking for suitable places to invest. PE firms from US and elsewhere are desperately trying to have ME oil rich institutions invest in their funds. ME investors may just start investing more in their own region and much less than before in US and other foreign markets where they have taken big losses since '08. We shall see...
There is a lot of cash in reserve all over the world and Dubai and the Middle East may get a bigger share of investment than before the global crisis.
Evan here. Before I am crucified for that statement, I just wanted to clarify that what I mean by a lot of cash in reserve is that investors are pulling their funds out of the market and thus there is a lot of cash on the table, sort of speak, ready to be invested, but investors are hesitant to invest in US and other established markets. The Middle East can potentially see an influx in foreign investment, as well as more investment from cash rich sources within the ME, due to the ME arguably being a more safer place to invest at present, relative to the western markets. That is one way of looking at things. Of course, if the US can't fix the credit crisis for the long-term then ME could have big problems getting financing as well. It is already a challenge in the ME to get financing for new mega projects, but from what I understand the financing for even such mega projects in the ME is still occuring. Further, there is a tremendous amount of cash in reserve in the ME and ME investors, including Sovereign Wealth funds are looking for suitable places to invest. PE firms from US and elsewhere are desperately trying to have ME oil rich institutions invest in their funds. ME investors may just start investing more in their own region and much less than before in US and other foreign markets where they have taken big losses since '08. We shall see...
Evan here again. As an example of the enormous cash reserves in the region, I understand that Estilat, the UAE phone company, has about $20 billion in cash on hand. Just something you don't find elsewhere in the world . Like many cash rich UAE institutions, they are waiting for the right opportunity to invest.
For those who have serious interest in Middle East, below is link to March 2008 interview with 2 Aussie associates working in Baker Botts's Dubai office.
http://www.lawyersweekly.com.au/articles/The-wild-wild-east_z165899.htm
Evan, you are on NYT.
http://www.nytimes.com/2008/11/23/business/23law.html?em