Expat Workers

By Jamie Ferguson, Vice President US and Latin America, Maxwell Drummond

For most professionals working in the oil and gas industry, a period of working abroad is expected, especially for those wishing to step into senior and managerial roles. In placing individuals and expats in various locations around the world, we are aware that relocating to some regions is much easier than relocating to others and that there are different advantages and disadvantages to every location. Professionals working in the European Union are free to move between other member states as they wish. For those who do so, state-provided healthcare and education is also provided. However, things can be more difficult for other workers in areas of the world.

The United Arab Emirates offers tax-free employment, an appealing expat lifestyle and 365 days of sunshine. The collection of small states on the Arabian Peninsula possesses nearly 10 percent of the world's total reserves and the energy industry provides a substantial amount of income for economic growth. Whilst in the UK and US, qualifications listed on your resume are often just accepted, in the UAE, it is often expected to be authenticated by both the home country and then again in the UAE. These hurdles can take time and delay project start dates which can prove frustrating for employers and employees. In spite of the hassle involved in getting residency in the UAE, the lure of the tax-free lifestyle continues to attract expat workers. According to data from the UAE's National Bureau of Statistics the population of the UAE more than doubled between 2005 and 2010, with expats accounting for around 88.5 percent of the people living there.

However, this year's HSBC's annual 'Expat Explorer' survey which ranks 100 countries on the financial health of foreigners living there found that Singapore is home to the largest proportion of wealthiest expats. These results were in contrast to previous years when the Middle East topped the table. In Singapore, more than half (54 percent) of surveyed expats said they earned more than US $200,000 a year, compared with a global survey average of just seven per cent. But last year, the Singaporean government introduced two measures which make the city state considerably less attractive to expats hoping to settle down in Singapore. Firstly, a 10 percent increase in stamp duty for any foreigner wanting to buy property in the city and secondly, the scrapping of a scheme which let graduates from foreign universities stay in Singapore for one year whilst they sought employment.

We have previously covered the high levels of compensation being paid by companies wishing to recruit foreign talent in Africa's emerging energy markets. Employers recognize that the incentives have to be high because life as an expat in say, Nigeria, is so different from countries with broader industries and higher standards of living such as Singapore and the UAE. The fact that expats demand more to live in Nigeria is unsurprising considering the amount of above ground risk the country is currently facing.

While working abroad can not only is an exciting period for the employee personally, it can pay great dividends both financially and in terms of valuable experience. Ultimately, professionals should consider all angles of relocating internationally from the taxes, benefits and incentives to political and economic unrest and risks associated with living in certain regions.

About the author
Jamie Ferguson joined Maxwell Drummond's Aberdeen team in 2006 to focus on executive search in the energy sector. In 2007 he was promoted to General Manager in Aberdeen and in 2009 Jamie relocated to Houston as Vice President of Maxwell Drummond's USA and Latin America business.

Maxwell Drummond International is a world leading retained search consultancy offering professional search services to clients in all sectors of the energy and natural resources industries.