The physical climate in the United Arab Emirates may be somewhat extreme,  lawyers are finding the business climate highly appealing. ALB discovers what practitioners can expect if they make the desert dash.

When Simpson Grierson partner Andrew Lewis resigned and took up a partner role at Norton Rose's Dubai office, he told ALB that he wanted to try something different.

Lewis will start anew, leaving behind all of his clients and staff, bringing just his fond memories of the 20 years spent working for Simpsons, and his corporate M&A and private equity (PE) experience.

His departure might seem a little emotional for some, but a string of similar defections has shown that there is a lot to gain from working in the United Arab Emirates (UAE).

"The Middle East is an exciting growth market where there?s a huge amount of M&A activity. It's a lot more attractive than our [the New Zealand] market, which will remain more static," Lewis says.

Neil Brimson, the managing partner of Herbert Smith in the Middle East, says that lawyers are increasingly coming to the UAE because they want to work in one of the most exciting markets in the world. The region has tremendous growth, second only to China, he says.

PE and equity capital market work is booming, says Brimson. The firm also handles deals involving both inbound and outbound investment of UAE funds, many of which are with the Indian subcontinent, Africa and South Asia, and particularly Malaysia.

The physical climate in the United Arab Emirates may be somewhat extreme, but Australian and Kiwi lawyers are finding the business climate highly appealing. ALB discovers what practitioners can expect if they make the desert dash

Norton Rose partner Andrew Abernethy, formerly a partner at Bell Gully, agrees that there is plenty of work available in the UAE because the oil, property, construction and finance industries are performing well, despite the global credit crisis.

There has also been a lot of banking and property work since the region began to diversify its industries, says Abernethy, pointing to outbound investment from sovereign wealth funds, stake acquisitions in a diverse portfolio of assets from North American banks to sports car manufacturers.

"It's all coming out of this region; it's a place to rival New York and London. This is why a lot of lawyers from New York and London are flooding in. As an M&A lawyer, you want to be closer to the action, and Dubai is where the M&A is happening," he says.

More foreign firms to choose from

The London and New York markets are currently "very quiet" for pure M&A, corporate and PE work, says Abernethy. By comparison, the UAE has not been so hard-hit by the economic slump and more large foreign firms have realised this and begun opening new offices.

Brimson believes that there will also be plenty of work in Abu Dhabi, since it is tipped to grow dramatically as a legal centre. He says that development plans for Abu Dhabi are extremely "ambitious," particularly in the energy and infrastructure sectors.

Abernethy says that Abu Dhabi and Dubai will provide "massive" and "unrivalled" work opportunities for at least a decade. "I'm doing cross-border deals into India, Turkey the UK, Kuwait and Bahrain. A lot of the outbound investment is going to India. In fact, we?re focusing on deals going into India, South Asia, Syria, Jordan and North Africa. Turkey is also a very popular destination," he said.

Maria Coombe, manager of Hays Recruitment in Dubai agrees that Abu Dhabi is "up and coming." Although it is still a bit behind Dubai, it has oil and has begun to diversify, she says, creating demand for legal work.

She says that UAE law firms are looking to fill vacancies in practices such as corporate, banking, real estate, construction, projects, energy, oil, gas, shipping, IT and telecommunications. However, candidates must have a genuine reason for coming to the UAE.

"It isn't enough to be interested because there's strong economic growth...organising a visit to Dubai on your own steam and looking around is really valuable in deciding whether it's what you're looking for. It definitely adds weight to an application," she maintains.

Understanding the benefits and drawbacks

One of the biggest selling points that firms use to attract lawyers is tax-free income, says Abernethy. UK firms generally pay salaries that are equivalent to the UK rate which, for an associate, would amount to a significant increase on their after-tax income.

According to Hays' Guide to Salaries, most lawyers with at least 7-8 years' experience can expect a monthly net salary ranging from A$16,332?18,687 at UK firms, and at least A$26,736 at US firms.

However, the recruitment process for partners or managing partners has become quite complex, says Coombe, especially for candidates located overseas. Generally, senior level candidates must have Middle Eastern experience, a broad knowledge of the market or a portable client base.

"Partners are generally required to bring portable business with them, which typically starts from around the œ1m (A$2.1m) mark. At the senior level, you really need to add value to the business and clients. This isn't the case at the very junior level, but they might struggle at the beginning, because there isn't as much training as there would be in Sydney firms," she says.

Lawyers should not get too excited without doing the necessary research, however, as the cost of living is expensive in Dubai. Abernethy says that Norton Rose's external advisors have compared the cost of living in UAE to that of London. "It found that it was less expensive to live in Dubai than London, but not significantly. It is certainly cheaper to run a car, buy electronics and clothes," he says.

The 2008 international cost of living comparison by Xpatulator reveals that Dubai was the most expensive city for restaurant dining and hotel accommodation. It was also found to be the fourth most expensive city for clothing, and fifth most expensive for rented accommodation. Brimson agrees that the cost of living is expensive and the tax break is, to some extent, neutralised by high prices. Even living in an apartment can be extremely expensive, he says, and rates are equivalent to those seen in downtown London or Paris. This is partly owing to rent taxes and high inflation, he says.

Abernethy believes that restrictions preventing expatriates from owning property in designated zones have discouraged many from buying. "If you want to live near the beach, you have to rent. Either way, renting or owning is expensive; property prices have skyrocketed over the past two years. Some professional people may be concerned that their wealth is being eroded by inflation."

Some senior lawyers can, however, be eligible for accommodation and food concessions. "Senior roles tend to include some sort of allowance towards education costs as well, and most companies provide good healthcare as well as an annual flight home for self and family," says Coombe. ALB