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Abu Dhabi vs Dubai – Incredible Wealth, Illustrious History But What Does the Future Have in Store?

  • By: Royal Maison

It’s no secret that Abu Dhabi & Dubai are among the 15 richiest cities in the entire world, with a significant number of house-holds earning over $250k annually. But it’s not just the citizens who are doing incredibly well, but the royal families especially. In fact, Ahmed bin Saeed Al Maktoum of Dubai was said to be worth $31.7 billion as of 2011, with Kalifa bin Zayed Al Nahyan of Abu Dhabi not far behind with a modest $15 bilion.

With such a ridiculous amount of wealth, it’s no wonder why both Dubai and Abu Dhabi have experienced significant growth in recent years. But where has their wealth come from? And why have they experienced so much success? But of course, more importantly; will each of these states be able to maitain the same level of growth and development that they have shown during the past 15-20 years?

Abu Dhabi

While Abu Dhabi is the capital city of the United Arab Emirates, it’s not as large as it’s sister city of Dubai which has an estimated population of 3,137 million. Having said that, Abu Dhabi still boasts roughly 1.206 million, many of which own significant wealth.

Abu Dhabi accounts for approximately two-thirds of the $400 billion UAE economy, which is staggering amount. This is due to their large hydrocarbon wealth land (and one of the highest GDP per capital). They have a wealth of oil and gas which has fuelled their economy significantly over recent years and is responsible for their magnificient growth.

But just how sustainable is Abu Dhabi’s economic growth? As it turns out, with 95% of the UAE’s Oil reserves, and 92% of its gas; they’re in an incredibly good position. In addition to that stat, without any further discoveries and at their current utilisation rate. AD’s oil reserves will last another 150 years. Which we can argue is certainly long enough to expand their interests in commercial development, securing them a strong foot-hold in the future as being one of the world’s wealthiest countries.

Dubai

Dubai is the biggest city in the United Arab Emirates, boasting it’s largest populous as well. Dubai has experienced an incredible amount of growth over recent years and have fast become a leading location in delivering a lavish lifestyle with significant wealth. It is a global transport hub which has contributed greatly towards the acceleration of the city’s economic development. Their oil revenue has contributed towards this growth: however, their production levels are low and reserves lower: today, less than 5% of the emirate’s revenue comes from oil. Today, Dubai’s primary economic revenues come from trade, tourism, aviation, real estate and their financial services.

But despite the tal, gold-plated buildings, the fancy cars and the immense wealth that can be found in the great deserf city of Dubai; it’s certainly not without its financial issues. In fact, just 9 years ago, the glimmering desert jewel had fast gone from the pinnace of wealth, to the edge of bankruptcy – Needing a $20 billion bailout from Abu Dhabi. And while they certainly bounced back for a time, their economy seems to be losing steam.

Residential property prices are on the decline, (more than 15%) and the stock market is down further 13%. And yes, the population has experienced significant growth in spite of this, however many have been in lower-paid construction and service jobs. What can be done to alleviate this decline in economic growth? Will Abu Dhabi bail out their sister emirate once more, or will Dubai have to find another way to dig their heels into the sand and remain firm as a wealth and prosperous city? Only time will tell.

In any case, Dubai has done much for the UAE’s economic growth and is largely responsible for building their wealthy reputation amongst holiday makers and investors alike. Whilst it’s not certain what the future has in store, we are sure that those in charge will make the right decisions and find a way to turn the ship around and head back towards calmer seas.

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CONSULTANCY AGREEMENT

Definitions
“Agreement” is this Consultancy Agreement between the Consultant and the Client.
“Candidate” is any person introduced virtually by the Consultant to the Client.
“Client” is any person desiring to review profiles based on the data and details recorded and provided by the Consultant.

“Consultant” is Royal Maison, an authorized online sub-brand under Savoir Vivre Human Resources Consultancies, with headquarters in Burlington Tower Suite 22 Dubai, UAE.

 

“Effective Date” is the date of latter execution of this Agreement by the Consultant and the Client.   The remainder of the terms in this Agreement have the definitions provided herein.

1. Description of Services. This Agreement is solely for consultancy services (the “Services”) and is not, and shall under no circumstances be characterized, considered, or deemed as, a labor supply agreement or transaction providing manpower to the Client.

2. Consultancy Fee. The “Consultancy Fee” is the monetary consideration paid from the Client to the Consultant for the Services, under the terms and conditions provided below.  The Consultancy Fee will be paid by the Client to Consultant for a “Successful Referral” on the “Date of Appointment,” which is the date when the Candidate has been selected by the Client and becomes a Successful Referral. 

2.1  Clients based inside UAE. The Consultancy Fee shall be a one-time non-refundable fee as follows: (i) for salaries above 2,500 AED, the Consultancy Fee shall be twenty percent (20%) of the gross annual salary of the Successful Referral; (ii) for salaries below 2,500 AED, the Consultancy Fee shall be a flat fee of 9,000 AED.

2.2  Clients based outside UAE. The Consultancy Fee shall be a one-time non-refundable fee as follows: (i) for salaries above 5,000 AED, the Consultancy Fee shall be twenty-five percent (25%) of the gross annual salary of the Successful Referral; (ii) for salaries below 5,000 AED, the Consultancy Fee shall be a flat fee of 12,000 AED. All administrative formalities and processing fees for any Candidate to be brought into the UAE or to exit the UAE in the event of termination shall be the sole responsibility of the Client. For example, ticket, entry visa, return ticket, exit visa, and any and all applicable legal jurisdictional formalities shall be the sole responsibility of the Client.

2.3  Successful Referral Disclosure. The Consultant shall remain engaged in the process of the Client selecting a Candidate to become a Successful Referral and shall be included in all communications leading up to the selection of the Candidate, unless otherwise agreed by the parties.

3. Registration Requirements. 

3.1 Registration Fee. To activate this Agreement and the valuable Services to be provided hereunder, an initial fee of 3,000 AED, excluding five percent (5%) VAT, will be billed to the Client upon execution of this Agreement (the “Registration Fee”). The amount of the Registration Fee will be deducted from the Consultancy Fee Invoice once issued (detailed further below). The Registration Fee entitles the Client to fifteen (15) hours of effective Services from the Consultant, which will be reflected in the Consultancy Fee Invoice. The Registration Fee is limited to the engagement terms given and signed by the Client in the Client Registration Form above and related to the salary, day off, living arrangement, working hours etc. In the event that the Client breaches this Agreement in any way, no refund of the Registration Fee will be provided.

3.2  Required Documentation. Personal valid identification documents are required to be submitted per the Ministry of Emiratization MOHRE Rules and Regulations for Clients based both inside of the UAE and outside of the UAE.

4. Payment Terms and Conditions for all Fees; Late Fees. A “Consultancy Fee Invoice” will be issued on the Date of the Appointment of the Candidate and shall be paid by the Client within seven (7) business days of the date of issuance. In the event of nonpayment , a late fee of 250 AED shall be billed weekly, which is 50 AED for each day of nonpayment that the Client is benefitting from the Services (the “Late Fee”). The Late Fee may be prorated as applicable. Five percent (5%) VAT and five percent (5%) additional charge for use of credit card payments shall be added to all Fees, except that the five percent (5%) VAT shall be withheld from the Registration Fee as a value add for the Client.

5. Relationship of the Parties. Consultant is a virtual referral service, not an agent or representative of Candidate; neither is a Candidate an agent or employee of the Consultant. The Consultant is not liable for a Candidate’s acts and/or omissions, nor for any other events or occurrences beyond its control. Client shall indemnify and hold the Consultant harmless from all claims arising out of services provided by any Candidate to Client, including without limitation: claims for loss, damage, injury or expense suffered by Client or another person due to the wrongful acts, omissions, or negligence of the Candidate; and claims made by the Candidate against the Client.  This Agreement is subject to a full cancellation, if the Client, in any written or verbal communication, abuses, behaves inappropriately towards, shouts at or uses obscene or offensive language with regard to the  Consultant or the Candidate, in the Consultant’s sole discretion.

6. Candidates as Proprietary Information of Consultant. The Consultant shall own and maintain any and all information related to the Candidates for  twenty-four (24) months from the Date of Appointment, which information shall be considered proprietary, business sensitive, confidential information, and afforded confidential treatment by all parties.  As such, under no circumstances may the Client share the Candidate’s information  with a third party, for example for the purposes of the third party hiring or contracting with the Candidate.In the event that a candidate referred by the consultant is hired by the client or third party, the client agrees to pay a penalty of 30,000 AED, in addition to the agreed consultancy fee as per the candidate’s position. This obligation remains enforceable even after the termination of the contract between the client and the candidate. The penalty is applicable within 5 years from the date of referral, irrespective of when the consultant becomes aware of the hiring.  

7. Client’s Obligations. Client shall notify the Consultant immediately when any Candidate becomes a Successful Referral. Client agrees that it may not make any private agreement with a Candidate nor do any act that is inconsistent with this Agreement or may result in avoidance of any of Client’s obligations hereunder. Such private agreements and acts include, without limitation, those by which another person could avoid paying the Consultancy Fee to the Consultant. Client shall be liable to the Consultant for all damages resulting from Client’s breach of the terms and conditions of this Agreement in any manner.

8. MOHRE Regulations. Client understands and is obliged to follow the MOHRE and Immigration employment regulations in terms of benefits and working conditions for any Candidate. Client must process the Residency Visa of the Candidate at the Date of Appointment as per the UAE’s labor laws and if Client fails to do so, this act of negligence is subject to a fines and penalties executed by the relevant authorities which shall be the sole responsibility of the Client.

9. COVID-19. Client is responsible for all the COVID-19 formalities, relevant testing, quarantine, and vaccination preferences.

10. Warranty. The Consultant guarantees a Candidate’s employment with or contracting with the Client for three (3) months from the Date of Appointment. In the event that a Candidate resigns or a Client becomes reasonably dissatisfied with Candidate, the Consultant shall provide a one-time suitable replacement Candidate for no additional fee. Provided, however, if the Consultant determines that any Candidate was treated unfairly or exploited in accordance with this provision or the provisions set forth above in Section 5, the Consultant shall not be obligated to provide the replacement or issue any refund. Subject to these reasonable limitations, this warranty is the Consultant’s sole warranty, guaranty, or representation under this Agreement, and all other express or implied warranties, guaranties, and/or representations are herein disclaimed.   

11. Governing Law. This Agreement shall be governed by the applicable laws of Dubai, UAE. Any dispute under this Agreement shall be settled by arbitration according to the Rules of the Dubai Courts.

12. Electronic signature acknowledgement and Consent. I agree and understand that by accepting the Terms and Conditions above, that my Electronic Signature is the legal equivalent of my manual/handwritten signature and i consent to be legally bound to this agreement.