- It’s been almost a year since the Corporate Tax came into effect in the UAE, and we saw rampant hiring.
- Will we see another surge in 2024 and 2025?
- To give us insights The Finance Story spoke to Hany Elnaggar, Associate Partner (ME & GCC) at WTS Dhruva Consultants, and Nirav Rajput, Partner at Aurifer.
What motivated you to specialize in taxation, and what prompted your decision to relocate to Dubai?
Hany: I didn’t choose tax, it chose me. Although I began my career as an accountant in 1996, very soon tax caught my attention because of its dynamic nature.
In Egypt, I worked with the Egyptian Tax Authority, PwC, and Novartis as the Group Tax Manager.
In 2013 I decided to relocate to the Kingdom of Saudi Arabia (KSA) and joined ACWA Power as the Group Tax & Zakat Senior Manager for the Middle East region.
You will be surprised to know I moved to Saudi Arabia on the same salary package that I received in Egypt! Some of my friends thought I was crazy. But for me, it was an opportunity to expand my experience in another region and hence worth it.
When I relocated to KSA, one of my main focuses was the role, which will be centered around regional responsibilities rather than solely focusing on the country’s perspective.
In the next few years, I held senior tax roles in various MNCs like Ericsson, and Nissan Motors in Saudi Arabia.
Fast forward, in 2022 I decided to move to Dubai and joined Al Tayer Group as Head of Direct and International Tax for Middle East & GCC.
In 2023, I shifted to WTS Dhruva Consultants as an Associate Partner (ME & GCC).
Nirav: I began my career in taxation and worked with prominent names like EY, and McKinsey in India. I spent most of my career working in indirect taxes.
In 2017, I relocated to the UAE and joined Grant Thornton.
Although I was in charge of overseeing value-added tax (VAT), the GCC region exposed me to different kinds of taxes.
In 2019, I joined Aurifer, a boutique tax firm that mostly works with tax authorities and multinationals, and 4 years later was promoted to Partner.
It has been almost two years since Corporate Tax was introduced in the UAE. What does the job market look like right now?
Hany: In January 2022, when Corporate Tax was announced in the UAE we saw a lot of hiring.
After the tax became effective on 1st June 2023, the hiring streak continued.
In 2024, we will see a slight slowdown. This doesn’t mean that hiring will drastically decrease, but it won’t be as rampant as 2023.
The good news is that it is expected to increase again in 2025. Why? Because some companies are waiting for the first tax year filing in 2025. They will start preparing annual filing towards the end of this year.
Nirav: Ever since the UAE introduced Corporate Tax I have been monitoring its developments. It presents a very good opportunity for people who are not experienced in Corporate Tax, for example, somebody like me.
The UAE was previously considered a tax haven, but having a tax regime boosts confidence for international businesses.
UAE is no longer on the blacklists or gray lists of the EU or The Organisation for Economic Cooperation and Development (OECD). This attracts more investments from the EU.
The introduction of Corporate Tax has led to an increased demand for skilled professionals, especially in finance.
These professionals can assist companies in calculating their CIT liabilities and optimizing their tax structures and benefits.
Those with 5 to 10 years of experience will benefit from the ongoing transition in this region.
Hiring trends in the ‘industry’ in the UAE?
Hany: From the industry perspective, I have noticed that many big companies have a Senior Tax Professional such as a Head of Tax or Tax Director, managing the region from the UAE.
However, many of them do not have a dedicated tax team or manager.
Now, with Corporate Tax getting implemented, they are looking to create an in-house tax team.
There is a high demand for mid to senior-level positions with around 4-6 years of experience.
Companies are primarily seeking individuals with a background in complex tax systems, such as those in India, Egypt, and Saudi Arabia.
You don’t necessarily need to have UAE experience, as it has been only a year since the tax was implemented.
Expertise in International Tax and Transfer Pricing is also sought after.
In some cases, knowledge of VAT is required, but these opportunities are relatively scarce compared to the overall market.
Current hiring trends in ‘Advisory’ firms?
Hany: Hiring in advisory is booming right now, even more so than in corporates.
There are many international tax projects and clients entering the market from Europe, the US, and Asia.
They are looking to explore the markets in Saudi Arabia, Qatar, Bahrain, and Kuwait with the help of experts in the UAE.
New laws and regulations are emerging in the country, now and then. They are hiring for entry-level and partner level.
Nirav: I want to mention that not just the Big 4s, but all other consulting firms are looking to hire Tax Professionals at all levels.
We see vacancies for International Taxation, Corporate Tax, and Transfer Pricing, which are increasing as we speak.
Many advisory firms are hiring professionals from Singapore and India as they have well-established Corporate Tax systems, as well as from countries like Egypt and the EU.
Also read: This Big 4 tax consultant transitioned to an industry role in Dubai. Here’s why!
People are excited to know what is happening in the other countries in the GCC region.
Hany: The economic and tax landscape in Saudi Arabia is changing dramatically. We know that Saudi Arabia has the largest economy in the GCC region.
Many big companies are investing in the construction, logistics, financial services, insurance, and pharmaceutical sectors, in Saudi Arabia. Mega projects like NEOM are a testament to that.
The introduction of the Regional Headquarters (RHQ) Program in Saudi Arabia has opened doors for investment companies. They can now have a physical presence by setting up structures and organizations.
The Saudi government realized what makes people opt out of the country; Saudization. It was challenging for companies as they were unable to find enough good candidates to meet the Saudization percentage.
The government then announced the easing of restrictions. This has led to more growth and inbound investment. The requirement for tax professionals as well.
Nirav: We are seeing a lot of potential in this region, and this is recognized by most of the territories, across the globe.
We saw Kuwait becoming a member of the OECD inclusive framework.
There have been Corporate Tax announcements in Bahrain.
Qatar already went ahead and implemented the Pillar Two rules.
I believe that all these factors are boosting the economy overall. And as a by-product of all these developments, vacancies are going up in the GCC region.
The requirement for professionals with International Taxation and Corporate Taxation knowledge is increasing in this region.
Also read: Why this Big 4 tax director embraced new career horizons in Saudi Arabia
Give us an overview of the industries or sectors experiencing the most growth in the UAE.
Hany: I believe the retail and technology sectors are experiencing significant growth in the market.
These industries may also require more employees in the future, or perhaps they have already started hiring.
Nirav: The construction industry is the most prominent in the UAE. The infrastructure is expanding rapidly, and we are witnessing the entry of numerous new players into the market. This has created a chain reaction.
There will be companies or individuals who will try to establish property asset management companies.
We also observe asset protection structures and holding structures.
Furthermore, we see service industries emerging simultaneously to assist these sectors. Because of this, there is an obvious need for finance and funding.
Therefore, we witness a significant number of financial players entering the market.
Alongside them, insurers are also joining in. Everyone is supporting each other, and the economy is growing.
What kind of salary should a Tax Professional expect in the UAE?
Hany: Salaries have increased in the market after Corporate Tax was implemented in the UAE. The same goes for Saudi Arabia.
Someone who was hired for AED 10k a couple of years ago might now be offered AED 15k or AED 16k for the same role.
These higher salaries are usually given to those with good experience who can thrive in the market, whether they work in the industry or an advisory firm.
My advice is to look at your salary from a long-term perspective if you are considering advancing your career. To gain additional experience you need to make some sacrifices in terms of your role and salary.
However, don’t also accept a meager package. Assess your capabilities, and experience and then accept an offer.
Nirav: I want to mention the comparison between salary and sustainability. I believe that it’s a two-way street. We need to consider both sides; the revenue and the cost for the companies.
You should have a long-term perspective and join an organization where you fit best and can contribute more.
Based on that, you can compare the revenue you can generate as an individual professional.
Also Read: Saudi Arabia’s Job Market 2024: Insights from Robert Walters’ Head of Financial Services
As a Tax Consultant, what is the best and craziest part of your role? And how do you maintain strong relationships with clients?
Hany: It’s a difficult question, to be honest.
In the UAE, or even other countries like Saudi Arabia, and Qatar, clients always have this perception that you are only dedicated to them.
Of course, in the consulting or advisory industry, it’s not easy, especially when you have new regulations in place. So you are trying to satisfy both yourself and the clients.
While you are trying to increase your knowledge, at the same time your client is in a hurry to understand how the new regulation can impact him.
So, managing the clients may be the craziest part.
And if you ask me about the best part about joining an advisory firm? You get to work with various sectors, not just one.
In 1 or 2 years, you can gain as much experience as someone who has been in a stable tax regime country for 10 years.
My advice to you would be to read as much about the guidelines and regulations in the UAE as possible.
Nirav: The craziest part of working in consulting is matching expectations.
When it comes to tax laws, we have our own sets of interpretations, and then, the authority also gives their side of the story. Aligning these two at times is quite crazy.
And I enjoy both ends of it.
What would be your advice for Tax Professionals who wish to relocate to the UAE?
Hany: The competition in the job market is fierce.
You may feel disappointed after applying for jobs and not getting an interview.
Does this mean you are incompetent? No. Maybe the companies didn’t find what they were looking for in you.
Be patient, have confidence, and find a job that matches your skills. Consider working for a medium or small company where you can excel.
I have also observed, that several candidates accept opportunities just to relocate. and as soon as they get an opportunity within the country they start looking for another job.
Do not be that person. This is not beneficial for your reputation in the market.
Nirav: I have a hardcore Indirect tax background, but later, I ventured into Corporate Tax in the UAE.
So I think the UAE is the best part of the GCC region because it is still nascent in terms of taxes.
Stay informed about the current happenings in the industry, especially about the guidelines and regulations, if you want to enter this market.
