Associate salaries in Riyadh are up to a fifth higher than in Dubai, managing partners at international law firms based across both cities have told Law Middle East.
Three law firm leaders in charge of hiring decisions at their respective firms said associates in Riyadh currently earn between 15% to 20% more than their counterparts in Dubai.
Whilst associate pay across bands at international law firms is information generally difficult to verify in markets globally, legal recruiters Hydrogen estimate an associate in the UAE with one year of post-qualification experience (PQE) earns a monthly salary ranging from AED 35,000 to AED 45,000, dependent on the type of firm they work for.
This would mean the same associate could earn as much as AED 40,250 to AED 54,000 per month in Riyadh, albeit in the equivalent Saudi riyals.
The managing partners pointed to a number of driving factors, namely Saudization, a government scheme requiring private sector companies to hire a designated percentage of Saudi nationals within their workforce.
At present, this is 70% within law firms, which according to one managing partner is a significant limiting factor given the nascent legal market and dearth of local talent.
“Law firms are competing for talent from the same pool of exceptional lawyers—those who went to the best schools, are bilingual in English and Arabic, and can work the long hours expected of them,” he said. “Dubai is not so limited. I am able to hire the best lawyers in the UK, US, Australia, New Zealand, wherever, with very few restrictions.”
They also compete for homegrown talent with the Kingdom’s burgeoning in-house legal community.
For the remaining 30% the managing partner highlighted relocation may be an issue, in spite of the considerable relaxation of local restrictions, and so these lawyers have a higher bargaining power and can demand a premium to move there.
Many though are mindful they face the prospect of it only being a short-term move if, for example, Saudization targets, which are subject to review year-on-year, increase, and they are let go by their firm in place of a Saudi national. “That is the real ‘elephant in the room’,” the partner said. “The percentages are generally based on the available pool. In the banking sector, for example, it is currently 90%.”
Dubai, meanwhile, has become increasingly accessible over the years for those looking to make a long-term move. For example, the government has relaxed the conditions for obtaining a Golden Visa in recent years, providing those eligible with an option for long-term residence over firm sponsorship.
Some law firms, however, are offering lawyers benefit packages to relocate to Riyadh in a way one partner said is reminiscent of “the old days in Dubai”.
It was the norm about a decade ago for lawyers relocating to Dubai to be offered very generous packages covering everything from housing to travel to school fees, but this has become less common over time as more and more people are drawn to the perks on offer in the city, he explained.
Riyadh is on the cusp, he added, with several firms using sign-on bonuses to incentivise foreign talent too.
