How to be a popular boss

‘Federal government employees, both nationals and expatriates, have hailed the directives of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai to raise their salaries by 70 per cent.’

I bet they bloody did.

The crackpot pay hike is not dependent on productivity or experience – though Khaleej Times says ministry staff have “pledged to work harder to further boost the country’s progress and development”. Which is good of them. And, remember, there was a 25% raise last year. It is aimed at combating rising living costs, but is the same as thinking printing more money beats inflation.

Without getting into the merits of whether these federal workers deserved such a dramatic raise, it is extremely unlikely private sector business would issue a blanket wage policy without tying it into some kind of performance/appraisal scheme. It also undermines efforts to attract nationals into the private sector. What private sector boss can match the sweeping generosity of the government? If you’re a national, apply for work at the ministry and sit tight, this says.

Crowded fairways

As reported last week, superlative-fixated Dubai is to host the world's richest golf tournament. You can argue whether $20m represents value (selling expensive villas, golf tourism, and go-getting Dubai don't come cheap), though even some within the golf community thinks the money is crazy. The Dubai papers are full of the details this morning - with one glaring exception: what will happen to the 10-year-old Dubai Desert Classic?
There's nothing to say Dubai can't host two big tournaments, but with the new $20m scheduled for November 2009 and the Desert Classic due two months later - are they too close?

Beyond tax-free

The UAE has one of the world’s most attractive personal tax environments according to a new global survey of expatriate hot spots by Mercer. I don’t know how long it took Mercer to compile the report (it canvassed 32 countries) but the UAE section should have easy enough: note for next year, guys, there is no direct taxation here.
At first glance the report, Mercer’s Worldwide Individual Tax Comparator, makes bland enough reading. The UAE is top, what more do we need to know. It is cost-of-living and competitiveness reports that we’re most interested in. How or how much expat workers can get for their dirham overseas. Or what it costs to rent a two-bed apartment in downtown Moscow, Bangkok or Cape Town.
Where there is benefit is in highlighting potential concerns for the future. The report highlights the difference in tax breaks for single and married workers. It also looks at flat-rate taxes and social security contributions.
Many observers say a tax environment is in the UAE inevitable (road tolls, municipality fees and state-owned service providers are already revenue-generating), and a consumer tax is expected to roll out. For expats with children, education is a de facto tax. Residents know they’re being taxed; for those yet to arrive there remains a certain appeal in saying you’re moving to a tax-free country. Losing this tax-free status is a significant step. How the UAE plans to introduce taxes will say a lot about the type of people it wants to attract.

Eco, my arse

If we are to believe the papers, Brad Pitt and Angelina Jolie have bought an island at Nakheel's World development. They want to make an eco-friendly resort "to showcase a greener lifestyle and promote environmental issues". Good luck to them.
Could they not have bought a real island, with its own water supply and pre-installed vegetation? Maybe one that didn't need A/C six months of the year.
Or, as Kipp suggests, was it Dubai's tough line on paparazzi that attracted them?

Winning friends, influencing people: Part II

ITP's Arabian Business last week ran a story saying work on Emaar's Burj development had stopped, as workers were on strike demanding better pay. By the next day the story was pulled, and no mention was made of the city's biggest labor dispute until an Arabtec press release appeared clarifying it was now business as usual. Yesterday Arabian Business awarded Mohamed Alabbar its Lifetime Achievement award, hailing the Emaar chief's 'far-sighted approach, innovative thinking and flawless execution'.
There's no disputing Mr Alabbar's mover-and-shaker credentials, but ITP could be a little less crass with its timing.

Form is temporary, class is permanent

Dubai is reported to be lining up a bid to host the world's richest golf tournament. The $20m championship will be the season finale of the 2009 European Tour, and will comfortably better the purse of any of the four majors. An announcement is expected on Nov 19.
As ever, the figures are ridiculous but Dubai might have got its sums right. The city wants to sell itself as the ultimate golfing destination (and flog some of those course-side villas) and, good as the Desert Classic is, it's no better than above-average. The city isn't interested in being an also-ran; it wants the best. If paying $20m gets it to the top-table, so be it.
The downside is money will only get you so far. You spend big this year, there could be someone else spending bigger next (Shanghai?). The Dubai World Cup, the world's richest horse race, is not considered the world's best horse race.
For that to happen, and for Dubai's $20m golf, the city must deliver quality. And deliver it continuously. It wouldn't hurt to create some tradition. At the moment the only tradition appears to be 'spend lots of money'.

Clampdown on the mobile office

Bad news for the Saudi publishing industry: the country's traffic department says it will fine motorists caught reading the paper while driving. Phone users and drivers with children on their lap will also be slapped with a maximum fine of $134, says Arab News, quoted on Kipp. So it's also bad news for Mobily, and more work for nannies.