HSBC Bank International

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1 HSBC Bank International The Expat Explorer Survey 2010 Report one: Expat Economics

2 PAGE 2 I EXPAT EXPLORER SURVEY 2010 The Expat Explorer Survey Expat Economics Commissioned by HSBC Bank International, Expat Explorer is the world s largest global survey of expats. Now in its third year, the survey continues to deliver insight into expat life around the globe. Participation rates for the survey have continued to increase year-on-year and in 2010 the survey has more respondents than ever, with 4,127 expats answering questions relating to their finances, quality of life, and even what it s like to raise children abroad. The survey continues to explore how expat life differs from country to country, continent to continent even bigger than 2009: e Over 1,000 more expats sharing their experiences in this years survey Expat Economics is the first of three reports to be produced from this year s survey and focuses on how the economic situation differs for expats from country to country. The report draws upon research which represents the views of expats surveyed in over 100 countries. Detailed country rankings are published for all countries where more than 30 expats completed the survey. In total, there are 25 countries featured in our rankings in this years survey. The report looks at expat earnings levels, spending/saving/investing patterns and the impact of the current global financial climate to paint an informed picture of expats economic situation around the world. A league table ranking the countries in terms of key economic elements, income, disposable income and luxuries shows how different countries compare to one another. e Expats from a total of 39 industries/professions e The addition of new countries in the Expat Explorer league tables, including Bermuda and the Philippines

3 PAGE 3 I EXPAT EXPLORER SURVEY 2010 Contents e Overall League Table 4 e Expat findings 5 Wealth gap between the East and Mainland Europe continues to widen 5 BRIC Countries appear to be emerging expat hotspots 7 Career prospects / higher salaries lure expats to established centres in the East 8 Expat Finances remain strong 9 Expats repatriate a considerable proportion of wealth 10 Expats and the credit crunch 11 e League tables by criteria 12 e Country reports 15 United Kingdom 15 United States 17 Hong Kong 19 Singapore 21 United Arab Emirates 23 Australia 25 France 27 Spain 29 Germany 31 China 33 Russia 35 e Methodology 13 About Expat Explorer 13 About Expat Economics 13 e Further information Contact 37

4 PAGE 4 I EXPAT EXPLORER SURVEY 2010 Overall league table Overall Wealth Hotspot Income Disposable income Luxuries score rank score rank score rank score rank score rank Russia Federation Saudi Arabia Bahrain United Arab Emirates Singapore Bermuda Qatar Philippines Hong Kong China Malaysia United States Thailand Switzerland Mexico Australia South Africa Canada India United Kingdom Belgium Spain France Germany Netherlands The top Quartile The bottom Quartile Refer to methodology on page 13 for more details.

5 PAGE 5 I EXPAT EXPLORER SURVEY 2010 Expat findings Wealth gap between the East and Mainland Europe continues to widen In the 2009 Expat Economics report it was clear that wealth was moving East, with centres located throughout the Middle East and Asia home to a larger percentage of high net-worth expat individuals. In 2010, the Middle East, Singapore and Russia dominate the top quartile of the Wealth Hotspot leader board, while expats in mainland Europe and South Africa are accumulating the least amount of financial wealth. Expats in Russia remain the wealthiest in the world, with 36% of expats in Russia earning over $250,000. This number has actually increased over the past year 30% of expats based in the country earned over $250,000 in Both Singapore (32%) and Bermuda (27%) also have a much higher proportion of expats with an annual income of over $250,000, significantly higher than the overall average of 13%. Mainland Europe, however, dominates the bottom five positions on the Wealth Hotspot league table. Almost two-thirds (62%) of expats living in Spain earn below $60,000, as do almost half of the expats living in France (47%), the Netherlands (47%) and Germany (45%). This is much higher than the global average of approximately one quarter (26%) of expats earning below this figure across the world. In fact, the only other country to join mainland Europe in the bottom quartile was South Africa, where around one-third (36%) of expats earn less than $60,000.

6 PAGE 6 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) The Expat Wealth Hotspot score WEALTH HOTSPOT l Level 1 countries l Level 2 countries l Level 3 countries l Level 4 countries l Countries not in economic league table The world map above has been colour coded on the basis of Wealth Hotspot score of the countries in the economic league table. Wealth Hotspot score is a combined metric of two elements, Income and Disposable income, and as such it intends to provide a combined measure of earning power and cost of living of expats surveyed by country of residence. A higher Wealth Hotspot score for a country would suggest that expats here are accumulating more wealth.

7 PAGE 7 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) BRIC Countries appear to be emerging expat hotspots A look at saving and investing habits BRIC (Brazil*, Russia, India and China) countries fared well economically over the past year and, as a result, have emerged as promising expat hotspots. Scores for expats in these countries were higher than average when looking at a number of economic factors including earnings, career development, improved economic outlook and the ability to save. While close to two-thirds (63%) of all expats surveyed said they are earning more in their host country than in their country of origin, expats based in BRIC countries scored much higher (Brazil, 69%; Russia, 82%; India, 70% and China, 75%). In addition, with the exception of Brazil which fell slightly under the overall average, expats in BRIC countries were also more likely to see increased career opportunities within their host country (64% overall compared with; Russia, 82%; India and China, 70%). 61% 38% Overall Sample (100+countries) I am saving more 66% Brazil 41% I am investing more 76% Russia 55% Where do expats go for better financial opportunities? 66% India 39% 71% China 44% Although all BRIC based expats had a much sunnier economic outlook than the world average, expats in Brazil were most positive, with over two-thirds (69%) believing the economic situation had improved over the past year compared to a 22% worldwide average. Expats also agreed that their disposable income levels were much higher since relocating to a BRIC country, which has enabled them to both save and invest more. 63% 69% 82% 70% 75% 64% 62% 82% 70% 70% * Brazil sample size is 29 and therefore did not make it in to the overall league table. Earning more More career opportunities Overall Sample (100+countries) Brazil Russia India China

8 PAGE 8 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) While career prospects and higher salaries lure expats to established centres in the East, retirees head to Europe and Thailand Those expats moving to the Wealth Hotspots are, not surprisingly, highly likely to be moving for financial gain and career progression and are very likely to be working in finance roles. With Asia and the Middle East also weathering the financial storm particularly well compared to countries in the Eurozone, it is not a surprise that a greater number of expats will have sought out these safer hotspots to progress their careers and be rewarded with higher salaries. Why did you choose to become an expat? Career/money prospects Broaden my life experience Tired of the situation in my country of origin My current employer sent me here To be with my partner/spouse 18% 17% 24% 57% 55% 77% percent of expats living in Bermuda work within the financial services sector, followed by Saudi Arabia (35%) and Singapore (29%). Similarly, when questioned about their motivation to move, expats in Saudi Arabia, Qatar and Russia decided to do so predominantly for career and money prospects (85%, 83% and 76% respectively). To retire abroad To take care of family in the host country Other/Not stated 5% 2% 3% In stark contrast, the majority of those moving to mainland Europe are retirees (Spain, 38%; France, 33%), with many choosing to move specifically to retire (25% and 21% respectively). Thailand also ranks highly for those who choose to move abroad to retire (21%). These countries, although not scoring well on the Wealth Hotspot league table, ranked higher when it came to lifestyle; Thailand, France and Spain topped Expat Explorer s 2009 quality of life poll (coming 3rd, 7th and 9th respectively) and explain the countries retirement draw. The role of career/money in becoming an expat Country of residence % Mentioning career/money prospects as the key reason for becoming an expat Saudi Arabia 85% Qatar 83% Russia Federation 76% Philippines 74% United Arab Emirates 73% TOP 5 Netherlands 42% Australia 42% South Africa 40% France 26% Spain 18% BOTTOM 5

9 PAGE 9 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Expat Finances remain strong How are expats allocating their wealth? Finances amongst expats remain extremely positive, with the majority of those surveyed saving more since moving abroad and very few accumulating more debt. Two-thirds (66%) of expats have more disposable income in their new country and those in the defined Wealth Hotspots are benefiting most from the increase in their personal finances 100% of expats in Bahrain agree they have more disposable 61% income than they did previously, with the numbers also extremely high in Bermuda (96%), Qatar (92%) and Saudi Arabia (92%). Although saving levels amongst expats as a whole have dropped since 2009, 61% of expats are still saving more whilst working abroad and one in five (20%) are able to pay off more debt than when they lived in their country of origin. Only 5% of expats surveyed overall are now accumulating more debt. Saving more 43% Spending more 38% Investing more 20% Paying off more debt 5% Accumulating more debt 13% None of these Qatar boasts the highest number of expats being able to save more than in their country of origin (92%) followed by Saudi Arabia (89%), Bahrain (88%) and Russia (76%). However, higher salaries have resulted in these countries having to spend more too. Expats in Bermuda (83%), Qatar (63%) and Russia (55%) are all spending more in their host country compared to their country of origin. Expats in the UK are the most likely to be accumulating more debt (11%), followed by Australia (9%), despite the fact that many expats in these countries are also able to save more than in their country of origin (53% and 51% respectively). Spain (29%) and France (36%) have a much smaller percentage of expats saving more than in their country of origin, but again this is likely to be due to the larger number of retirees amongst this population.

10 PAGE 10 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Expats repatriate a considerable proportion of wealth How do expats allocate their money towards savings and investments? Although expats tend to use a large variety of vehicles to save and invest, a large proportion of wealth in longer term investments is repatriated, the most common being property (30%), equity (22%) and bonds (11%), whilst general savings, banks/ building society savings and investment into company shares are predominantly carried out within their host country. The use of offshore centres for saving and investing appears to be under-utilised, with the most popular investment vehicles for expats being managed funds (16%) and foreign exchange (12%). Expats in the Middle East are the most likely to repatriate their property wealth, with very few investing in property in their host country (49% of expats in Qatar invest in their country of origin compared to 0% investing in their host country and in Saudi Arabia 60% invest in their country of origin whilst 0% invest in their host country). 8% 27% 46% 36% Savings (unspecified) 7% 17% 33% 26% Bank/building society savings account 11% 26% 30% Property 9% 13% 13% 22% Equity 6% 16% 13% 19% Managed funds 3% 10% 12% 12% Bank/building society fixed term investment 4% 12% 10% 8% Foreign exchange 6% 3% 13% 10% Shares in company 3% 7% 6% 11% Bonds Other country Offshore centre Host country Country of origin

11 PAGE 11 I EXPAT EXPLORER SURVEY 2010 Expat findings (continued) Expats and the credit crunch Almost half (47%) of the expats surveyed believed that the economy in their current country has become worse since the start of Reflecting the turmoil experienced in the Eurozone, a larger number of expats based in Spain (93%), Belgium (60%), France (60%) and the United Kingdom (67%) also agreed with this statement. This was in contrast to the economies that have escaped the worst of the economic downturn, where a smaller number of expats living in the emerging nations of Russia (45%), India (16%) and China (9%) were feeling less negative about their respective host economies. Expats in these regions were also much more likely to view the economy as having improved over the last 12 months (Russia, 27%; India, 50%; China, 61%) in comparison to the overall survey average of around one quarter (22%). Just under one-third of expats (31%) surveyed said that their economy had remained the same. YES it has improved 22% YES it has become worse 47% NO No, it has remained the same 31% Of those expats who revealed that the economic situation in their country had either deteriorated or remained the same, the vast majority (87%) did not believe that they would be re-locating. This trend was generally higher in Middle East and Asian countries such as Qatar (94%), Bahrain (97%) and China (92%) than European countries such as Germany (84%), United Kingdom (78%) and Spain (83%). 87% l I am actively looking to move home due to uncertain economic conditions This divide suggests that expats in the Middle East and Asia are more likely to remain in their country of residence despite the fact their economic situation has deteriorated. One explanation for this could be that countries such as Qatar, Bahrain and the UAE tend to be Wealth Hotspots for expats and are in the top quartile when it comes to income and disposable income. European countries such as Germany, Spain, France and the Netherlands are in the bottom quartile which suggests that expats may believe they are financially better off in their current country of residence, despite the economic situation having worsened. 6% 7% l I still believe the economy is too fragile for me to stay so I am considering a move home l There has been no impact on my situation and I will be staying

12 PAGE 12 I EXPAT EXPLORER SURVEY 2010 Regional League Tables Overall Wealth Hotspot Income Disposable income Luxuries Country RANK RANK RANK RANK RANK THE AMERICAS Bermuda (4) 0.50 (2) 0.40 (3) 0.60 (5) 0.43 (16) United States (12) 0.30 (12) 0.31 (8) 0.28 (14) 0.46 (10) Mexico (15) 0.25 (14) 0.24 (14) 0.26 (16) 0.47 (9) Canada (18) 0.22 (19) 0.19 (18) 0.24 (18) 0.46 (10) Russia Federation (1) 0.58 (1) 0.43 (2) 0.72 (1) 0.44 (15) Singapore (4) 0.49 (3) 0.49 (1) 0.49 (7) 0.45 (13) Philippines (8) 0.33 (10) 0.33 (6) 0.32 (12) 0.51 (5) ASIA PACIFIC Hong Kong (9) 0.39 (8) 0.36 (4) 0.41 (9) 0.38 (20) China (10) 0.35 (9) 0.27 (12) 0.42 (8) 0.38 (20) Malaysia (10) 0.29 (13) 0.24 (14) 0.34 (11) 0.51 (5) Thailand (12) 0.25 (14) 0.15 (19) 0.35 (10) 0.55 (3) Australia (16) 0.24 (16) 0.24 (14) 0.23 (19) 0.46 (10) India (19) 0.23 (17) 0.20 (17) 0.26 (16) 0.39 (19) Switzerland (14) 0.32 (11) 0.32 (7) 0.32 (12) 0.37 (22) United Kingdom (20) 0.23 (17) 0.29 (11) 0.16 (21) 0.30 (25) EUROPE Belgium (21) 0.15 (21) 0.09 (20) 0.21 (20) 0.40 (18) Spain (22) 0.08 (23) 0.06 (24) 0.09 (23) 0.45 (13) France (23) 0.07 (24) 0.07 (22) 0.07 (24) 0.43 (16)) Germany (24) 0.11 (22) 0.08 (21) 0.13 (22) 0.32 (24) Netherlands (25) 0.04 (25) 0.04 (25) 0.04 (25) 0.36 (23) MIDDLE EAST AND AFRICA Saudi Arabia (2) 0.49 (3) 0.36 (4) 0.62 (2) 0.51 (5) Bahrain (3) 0.44 (7) 0.26 (13) 0.62 (2) 0.59 (1) United Arab Emirates (4) 0.45 (6) 0.31 (8) 0.59 (6) 0.53 (4) Qatar (7) 0.46 (5) 0.30 (10) 0.62 (2) 0.50 (8) South Africa (16) 0.18 (20) 0.07 (22) 0.28 (14) 0.58 (2) Refer to methodology on page 13 for more details.

13 PAGE 13 I EXPAT EXPLORER SURVEY 2010 Methodology About Expat Explorer The Expat Explorer survey, now in its third year, is the largest global survey of expats. Commissioned by HSBC Bank International and conducted by third party research company GfK, 4,127 expats were questioned through an online survey from 26th April 2010 to the 7th June 2010, with expats from over 100 countries worldwide taking part making this unique survey the largest of its kind. Individuals from four continents described the opportunities and challenges they experience living away from home. The survey provides an insight into how expat life differs from country to country, continent to continent and from an expats country of origin. Please note the sampling technique used for the 2010 survey does not claim to give a fully representative sample of expatriates. In addition, it differs substantially from the sampling technique used in Therefore, comparisons of results year on year are not statistically valid and have been made for illustrative purposes only. A sample size of 30 or more respondents from each country was required for inclusion in the league tables, in order to be considered robust and indicative of the views and trends of the specific population. The league tables are based on a series of interrelated factors (rather than a single factor or question) to ensure a fair assessment of how individual countries rate across the full criteria. The responses of those who responded not applicable or refuse to say have been excluded. Each criterion is equally weighted to arrive at a score. The overall ranking is based on the average score for a country across the criteria. About Expat Economics The Expat Economics league table ranks countries in terms of three main economic factors: Income, Disposable Income and a measure of Luxury. All countries with a sample size of 30 and above are included in the economic league table. Scores from each factor are equally weighted to arrive at an Overall Expat Economic Score and Overall Rank. Individual country rankings for the constituent elements (Income/Disposable Income/ Luxuries) are also available. Scores for Income and Disposable Income are averaged to produce a Wealth Accumulation Hotspot Score and Rank for each country. Income Score is derived from proportion of expats surveyed in each country who earn at least $200k per annum. Disposable Income Score is derived from proportion of expats surveyed in each country who have a disposable income of $3000k+ per month compared to their country of origin. Luxury score is derived from ascertaining the proportion of respondents who have agreed with a number of following statements: e Live in a nicer / bigger property e Have domestic helper / staff (e.g. cleaner/nanny) e Own more than one property e Own nicer and more cars e Own a boat / yacht e Go on more luxurious holidays e Better healthcare e Own a swimming pool

14 PAGE 14 I EXPAT EXPLORER SURVEY 2010 Methodology (continued) The criteria to generate the economics league table has been further refined from 2009 to ensure it is even more robust. The Luxury score is a response level score meaning that the more items expats from a certain country tick, the bigger their Luxury score as opposed to just being based on proportions of respondents who have at least ticked one item. Respondents answered income-related questions in one of ten currencies that they use most often, however for ease of analysis and comparison, all foreign currencies were converted into US dollars. As per the following table, currency conversions were calculated based on conversion rates available as of 21st April Currency USD SGD JPY HKD GBP CNY CAD AUD AED 1 USD 0.14 USD USD 7.76 USD 0.65 USD 6.83 USD 0.99 USD 1.08 USD 3.67 USD

15 PAGE 15 I EXPAT EXPLORER SURVEY 2010 Country reports UNITED KINGDOM e Overall ranking: 20th out of 25 e Income: 11th out of 25 e Disposable income: 21st out of 25 e Luxuries: 25th out of 25 [Life here is] Very good. Excellent for first few years; now getting tricky with global economic crisis. - Expat in the UK e Wealth Hotspot: 17th out of 25

16 PAGE 16 I EXPAT EXPLORER SURVEY 2010 United Kingdom (continued) The current economic climate has a significant impact on UK-based expats The economic climate over the past year has had a higher than average effect on UK based expats, with two-thirds (67%) believing that the situation in the UK deteriorated over the past year, compared to an overall survey average of 47%. As a result, just over one in ten (11%) of those who said the economy hadn t improved are actively looking to move home due to the current economic climate. With nearly half (46%) of UK based expats working in the financial sector, economic instability has had a visible effect on their career prospects. Nearly one-third (29%) of UK based expats said there have been reduced career opportunities and 31% say they are having to monitor their expenditure more closely something that has become increasingly important due to the increased cost of living that UK based expats are faced with. Over half of UK based expats agreed that the cost of living was considerably higher than in their country of origin, spending more on most items except healthcare. The United Kingdom (UK) also scores lowest of all countries on the luxury scale. Expats based in the UK scored lower than average on all luxury factors except holidays, where half (51%) said they were able to go on more luxurious holidays than in their country of origin, compared to an overall average of 46%. INCOME RANK: 11th OVERALL RANK: 20th DISP. INCOME LUXURY RANK: 21st RANK: 25th RANK: 17th Profile of UK based expats surveyed in 2010: Sample size 420 WEALTH HOTSPOT Country of origin USA (22%); Australia (14%); Canada (10%); France (10%); India (6%); Other (38%) Occupation Finance (46%); IT (8%); Marketing (8%), Other (38%) Age (50%); (45%); 55+ (6%) Gender Male (57%); Female (43%)

17 PAGE 17 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) UNITED STATES OF AMERICA e Overall ranking: 12th out of 25 e Income: 8th out of 25 e Disposable income: 14th out of 25 e Luxuries: 10th out of 25 Career enhancing move; complex administration; complex finances. - Expat in the USA e Wealth Hotspot: 12th out of 25

18 PAGE 18 I EXPAT EXPLORER SURVEY 2010 United States of America (continued) USA-based expats spending more on healthcare Inflationary measures seem to be in check for those in the USA, with only 12% thinking there had been an increase in the price of everyday items. However, healthcare is one area that USA-based expats feel the pinch more so than any other country over two-thirds (68%) think they spend more on healthcare in the USA than they did in their country of origin. Over half (55%) of USA based expats think the economic situation has become worse since last year, which although higher than average (47%), is not a huge cause for concern amongst the expat community. Only 4% of expats based in the USA are actively looking to leave and 90% think that their actual circumstances have not been impacted. Expats in the USA scored highly for earnings, with 29% earning over $200,000 and two-thirds (64%) revealing that they now have more disposable income than in their country of origin, yet only 55% save or invest more than they did before relocating, lower than the overall figure of 60%. That said, expats based in the USA are still keen investors with nearly 83% having at least one savings account as well as 42% holding shares in their company (42%). INCOME RANK: 8th OVERALL RANK: 12th DISP. INCOME LUXURY RANK: 14th RANK: 10th RANK: 12th Profile of USA based expats surveyed in 2010: Sample size 231 WEALTH HOTSPOT Country of origin UK (53%); Australia (6%); Canada (5%); France (5%); Other (31%) Occupation Finance (27%); IT (10%); Marketing (6%), Science/ Research (6%); Retired (6%), Not stated (9%), Other (36%) Age (27%); (50%); 55+ (23%) Gender Male (71%); Female (29%)

19 PAGE 19 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) HONG KONG e Overall ranking: 9th out of 25 e Income: 4th out of 25 e Disposable income: 9th out of 25 e Luxuries: 20th out of 25 Expat life is great, especially from a financial point of view. Also [the] opportunity to see different cultures and lifestyles. - Expat in Hong Kong e Wealth Hotspot: 8th out of 25

20 PAGE 20 I EXPAT EXPLORER SURVEY 2010 Hong Kong (continued) Expats in Hong Kong positive about the economy and benefiting from favourable tax jurisdiction INCOME DISP. INCOME LUXURY WEALTH HOTSPOT Hong Kong based expats have remained relatively positive about their economic situation with more than half of the respondents (53%) agreeing that it has actually improved since last year, compared to a worldwide average of 22%. Expats in Hong Kong are relatively high earners (35% earning over $200,000) and 75% agree that they earn more since relocating. However, expats score relatively low in terms of luxuries, featuring only 20th out of 25 for the league table, the lowest of all Asian countries. Although expats in Hong Kong are spending considerably more than average on items such as accommodation (60%) and food and drink (66%), only 7% of expats based in Hong Kong believe they pay higher tax in their country of residence than in their country of origin (28% on average). Hong Kong based expats were the most likely to invest in their own company s shares compared to other nations (51%) as well as investing highly in equity (58%) and foreign exchange (41%). *Please note that although Hong Kong is referred to here as a country for the sake of this report, Hong Kong is a territory of China. RANK: 4th OVERALL RANK: 9th RANK: 9th RANK: 20th RANK: 8th Profile of Hong Kong based expats surveyed in 2010: Sample size 247 Country of origin UK (49%); Australia (13%); USA (11%); India (5%); Other (22%) Occupation Finance (61%); Marketing (7%); Other (32%) Age (30%); (61%); 55+ (9%) Gender Male (70%); Female (30%)

21 PAGE 21 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) SINGAPORE e Overall ranking: 4th out of 25 e Income: 1st out of 25 e Disposable income: 7th out of 25 e Luxuries: 13th out of 25 OK for [the] short term 24 months to accumulate wealth. - Expat in Singapore e Wealth Hotspot: 3rd out of 25

22 PAGE 22 I EXPAT EXPLORER SURVEY 2010 Singapore (continued) Home to the largest proportion of high earners Singapore acts as an attractive location for high earners, which is unsurprising as it tops the economic league table on income score with nearly half (45%) of expats earning over $200,000 per annum compared to the worldwide average of just 21%. Expats based in Singapore benefit from lower tax than in their country of origin only 8% believe they spend more on tax than they did at home. Of those surveyed, 61% also think that they have more disposable income than when living in their country of origin compared to an overall average of 42%. However, with higher salaries and higher disposable incomes come higher costs; many think they spend considerably more than in their country of origin on accommodation (72% in Singapore vs. 46% overall) and food and drink (60% vs. 47%). Expats in Singapore also believe they are already seeing signs of an improved economy, with over half (51%) agreeing that the economic situation in Singapore has improved since last year (compared to 22% overall). They are also much less worried about having to monitor spending (8% in Singapore compared to an overall average of 23%) or reduced career opportunities (15% vs. 20%). INCOME RANK: 1st OVERALL RANK: 4th DISP. INCOME RANK: 7th RANK: 13th RANK: 3rd Profile of Singapore based expats surveyed in 2010: Sample size 109 Country of origin LUXURY WEALTH HOTSPOT UK (54%); Australia (11%); USA (7%); India (6%); Other (22%) Occupation Finance (29%); Construction/ Manufacturing/Utilities (12%); Marketing (8%), Not stated (7%), Transport (6%); Unemployed (6%); Other (32%) Age (14%); (73%); 55+ (14%) Gender Male (78%); Female (22%)

23 PAGE 23 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) UNITED ARAB EMIRATES e Overall ranking: 4th out of 25 e Income: 8th out of 25 e Disposable income: 6th out of 25 e Luxuries: 4th out of 25 Lots of money, luxury and better standard of living with more savings and investments. - Expat in the UAE e Wealth Hotspot: 6th out of 25

24 PAGE 24 I EXPAT EXPLORER SURVEY 2010 United Arab Emirates (continued) UAE-based expats enjoy a luxurious lifestyle Expats in the UAE ranked 4th overall when it came to luxury. Common perks for expats living in the UAE include more cars (63% in UAE vs. 29% overall), more exotic holidays (57% vs. 46%), nicer and larger properties (58% vs. 50%) and domestic help (57% vs 37%). In addition, expats benefit from much lower tax costs, with almost all (94%) of expats based in the UAE paying lower tax than in their country of origin. Expats in the UAE, as well as earning higher salaries (the UAE ranks 6th on the Wealth Hotspot chart) are saving more too, with 79% stating that they saved more since becoming an expat compared to the worldwide average of 61%. INCOME RANK: 8th OVERALL DISP. INCOME LUXURY WEALTH HOTSPOT RANK: 6th RANK: 4th RANK: 6th Profile of UAE based expats surveyed in 2010: Despite the perks and improved lifestyle, the past year has been difficult economically for expats based in the UAE, with over three quarters (77%) indicating that the economic situation has deteriorated over the past year. This has directly impacted a quarter of expats who think there are reduced career opportunities in the UAE, with one in ten of those who thought the economy hadn t improved, actively looking to return home. However, the majority of expats in the UAE remain optimistic; 81% have said that they have not been directly impacted and are therefore not actively looking to return home. RANK: 4th Sample size 334 Country of origin Occupation UK (50%); India (10%); Australia (7%); Canada (5%); Other 28%) Finance (26%); Construction/ Manufacturing/Utilities (12%); Management (9%), Education (6%); Other (47%) Age (20%); (64%); 55+ (15%) Gender Male (74%); Female (26%)

25 PAGE 25 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) AUSTRALIA e Overall ranking: 16th out of 25 e Income: 14th out of 25 e Disposable income: 19th out of 25 e Luxuries: 10th out of 25 It s been a good move, though hard work initially and financially we are in a lot more debt. - Expat in Australia e Wealth Hotspot: 16th out of 25

26 PAGE 26 I EXPAT EXPLORER SURVEY 2010 Australia (continued) Expats in Australia are seeing an improvement in the economic situation but are also showing concerns on the rising costs of living INCOME DISP. INCOME LUXURY WEALTH HOTSPOT Although 41% of expats in Australia are seeing an improvement in the economic situation (compared to 22% overall), one quarter (25%) think there has been an increase in the price of everyday items, showing that inflationary worries are at the forefront of expats minds. Although the majority agree that the price of everyday items is still largely in line with what they would cost in their country of origin, healthcare (50% Australia vs. 40% overall) and tax (40% vs. 28%) are two areas that are more expensive in Australia than in their country of origin. Even with these increased costs, almost two-thirds (63%) of Australians still agree that they have more disposable income than they did before moving. While Australia ranks in 16th place on the economics league table, it scores highly in other aspects, such as quality of life (Australia ranked 2nd in Expat Explorer s 2009 quality of life survey) and luxuries. 63% of Australia-based expats are able to live in a nicer or bigger property since relocating, nearly a quarter have a swimming pool (24%) and nearly half (49%) own their own property. Those moving to Australia are predominantly from the UK (70%) and the country makes a popular retirement destination, with retirees accounting for one in ten expats. RANK: 14th OVERALL RANK: 16th RANK: 19th RANK: 10th RANK: 16th Profile of Australia based expats surveyed in 2010: Sample size 115 Country of origin UK (70%); South Africa (5%); Other (25%) Occupation Finance (17%); IT (10%); Retired (10%); Management (8%); Education (6%); Not stated (8%), Other (41%) Age (24%); (47%); 55+ (29%) Gender Male (66%); Female (34%)

27 PAGE 27 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) FRANCE e Overall ranking: 23rd out of 25 e Income: 22nd out of 25 e Disposable income: 24th out of 25 e Luxuries: 16th out of 25 I have a better quality of life but, due to the present rate of exchange regarding the euro and the pound, it has caused hassle [with] regards [to] finance which I didn t have before. - Expat in France e Wealth Hotspot: 24th out of 25

28 PAGE 28 I EXPAT EXPLORER SURVEY 2010 France (continued) France is a popular destination among expat retirees Although France appears in the bottom quartile on the Wealth Hotspot league table (24th) and earnings fall well below average (47% of expats earn below $60,000 compared to an overall average of 26%), one-third (33%) of expats in France are retired and nearly half (48%) are over 55 years old, which accounts for its low scoring within the Expat Economics report. The economic situation in France has been seen as relatively unstable by the majority of expats based there. Three out of every five expats in France think that the economic situation has deteriorated since last year and with associated currency fluctuations, it is not surprising to see that over one-third (42%) indicated that they have seen an increase in the price of everyday items. Expats based in France also believe tax costs are considerably higher than in their home nation (36% vs 28% overall). Due to the high number of retirees, 90% of French expats remain relatively unscathed by this economic uncertainty and are not looking to move home. They are also less likely than those in other countries to have to monitor their expenditure (21% in France vs. 23% overall) or have to worry about reduced career opportunities (9% in France vs. 20% overall). INCOME RANK: 22nd OVERALL RANK: 23rd DISP. INCOME LUXURY RANK: 24th RANK: 16th RANK: 16th Profile of France based expats surveyed in 2010: Sample size 222 Country of origin UK (53%); USA (25%); Other (22%) WEALTH HOTSPOT Occupation Retired (33%); Finance (9%); Education (7%); Travel (6%); IT (6%); Unemployed (6%); Other (33%) Age (15%); (38%); 55+ (48%) Gender Male (47%); Female (53%)

29 PAGE 29 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) SPAIN e Overall ranking: 22nd out of 25 e Income: 24th out of 25 e Disposable income: 23rd out of 25 e Luxuries: 13th out of 25 Since the crisis started in the UK and Spain, life has become very difficult so will return to UK in September until we can afford to return to Spain. - Expat in Spain e Wealth Hotspot: 23rd out of 25

30 PAGE 30 I EXPAT EXPLORER SURVEY 2010 Spain (continued) Feeling the economic heat more than any other nation The vast majority of expats in Spain (93%) believe the economic situation has become worse over the past year, but in spite of this, 83% of expats who thought the economy hadn t improved said they will not be looking to leave the country. Similar to France, retirees account for the largest expat group (38%), which again provides an explanation for Spain s low score on the Wealth Hotspot league table (23rd). Whilst not scoring highly on all luxury criteria, the fact that many expats in Spain are likely to have a swimming pool, own a nicer or bigger property and are more likely to run their own business, accounts for the fact they have ranked 13th in the luxury scales higher than any other European country. To cope with the economic fallout, 41% of Spain based expats have had to monitor their expenditure more closely (much higher than the overall average of 23%), while over a quarter (28%) have seen an increase in the cost of everyday items. Matched with the fact that nearly one-third (29%) of Spanish expats admit that they have less disposable income than in their country of origin, it is clear to see how expats in Spain are feeling the pinch. Expats in Spain are also the least likely to invest in company shares (14%), preferring instead to invest in property and savings accounts within their host country one-third (35%) of expats based in Spain use these investment options. INCOME RANK: 24th OVERALL RANK: 22nd DISP. INCOME LUXURY RANK: 23rd RANK: 13th RANK: 23rd Profile of Spain based expats surveyed in 2010: Sample size 130 Country of origin UK (71%); USA (8%); Other (21%) WEALTH HOTSPOT Occupation Retired (38%); Education (9%); Unemployed (9%); Finance (8%); Media (6%); Other (30%) Age (14%); (39%); 55+ (49%) Gender Male (52%); Female (48%)

31 PAGE 31 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) GERMANY e Overall ranking: 24th out of 25 e Income: 21st out of 25 e Disposable income: 22nd out of 25 e Luxuries: 24th out of 25 Sacrifices have been made (particularly financially) but I love living in another culture and learning about another part of the world rather than just being a tourist. - Expat in Germany e Wealth Hotspot: 22nd out of 25

32 PAGE 32 I EXPAT EXPLORER SURVEY 2010 Germany (continued) An unattractive location for those looking for career progression INCOME DISP. INCOME LUXURY WEALTH HOTSPOT Scoring 24th out of the 25 countries analysed in the Expat Economic league table and 22nd in the Wealth Hotspot league table, Germany is perhaps not an expat location for those seeking career prospects and monetary gain. The highest proportions of expats are either in education (15%), or a homemaker (12%). Just over half (53%) of expats based in Germany believe that the economic situation in the country has become worse since 2009 and although 50% of expats moved to the country for increased career prospects, over one-quarter (26%) have seen reduced career opportunities over the past year. As a result, 8% of expats in Germany who thought the economy hadn t improved are actively looking to return to their country of origin, whilst a further 8% of that group say that with the economy being so fragile they are also considering a move home. More positively, even though many expats based in Germany have lower levels of disposable income than they did in their country of origin (only 23% of expats in Germany agree to having more or much more disposable income since moving against an overall average of 42%), only 18% are having to monitor their everyday spending and only 11% claim to have seen a rise in the price of everyday items. Tax and public transport are two areas where expats in Germany feel the pinch more than in their home countries (public transport 42% in Germany vs. 27% overall and tax 52% vs. 28%). RANK: 21st OVERALL RANK: 24th RANK: 22nd RANK: 24th RANK: 22nd Profile of Germany based expats surveyed in 2010: Sample size 110 Country of origin USA (34%); UK (29%); Australia (6%); Other (31%) Occupation Education (15%); Unemployed (12%); Not stated (9%); IT (8%); Retired (8%); Science/ Research (6%); Other (42%) Age (28%); (50%); 55+ (22%) Gender Male (45%); Female (55%)

33 PAGE 33 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) CHINA e Overall ranking: 10th out of 25 e Income: 12th out of 25 e Disposable income: 8th out of 25 e Luxuries: 20th out of 25 Better work-life balance, higher income, more stable economic situation, more family and couple time, a global perspective and experiences shared as a family. - Expat in China e Wealth Hotspot: 9th out of 25

34 PAGE 34 I EXPAT EXPLORER SURVEY 2010 China (continued) Inflation is on the rise, even though the cost of living remains in check Expats in China are confident in the country s economy and almost two-thirds (61%) agree that they have seen an improvement in the economic situation since last year. Although in the second quartile on the Wealth Hotspot league table, China still has a relatively wealthy expat base, with one quarter (26%) earning over $200,000. The country is a big draw to those looking for increased career opportunities or financial gain and over two-thirds (68%) of expats cited this as their main reason for moving to China. Indeed, the country has proven to be an expat hotspot for those looking for higher income and career prospects; three-quarters (75%) of those who move to China have seen an increase in their income levels and 70% agree there are increased career opportunities in their new host country. Overall, the country is very popular for those working in the banking and finance world, which accounts for over one-third of the expat community (36%). Although one-third of China-based expats have seen an increase in the cost of everyday items, the actual cost of living is very low compared to other expat countries; over two-thirds of expats agreed that most everyday items in China were cheaper than in their country of origin. However, luxuries did not score very highly for expats based there; property ownership and owning nicer or more cars than in their home nation scored particularly low with only 5% owning a nicer car or more cars and 16% owning their own property. INCOME RANK: 12th OVERALL RANK: 10th DISP. INCOME LUXURY RANK: 8th RANK: 20th RANK: 9th Profile of China based expats surveyed in 2010: Sample size 101 WEALTH HOTSPOT Country of origin UK (30%); Hong Kong (29%); USA (11%); Canada (7%); Australia (6%); Other (17%) Occupation Finance (36%); Education (10%); Management (9%); Construction/Manufacturing/ Utilities (9%); Other (36%) Age (15%); (74%); 55+ (12%) Gender Male (73%); Female (27%) Expats within China are also able to save more since relocating. 71% save more and 44% invest more than they did when living in their country of origin. Savings accounts are the most popular investment vehicle amongst China based expats (86% have at least one) alongside equities (55%) and foreign exchange (38%).

35 PAGE 35 I EXPAT EXPLORER SURVEY 2010 Country reports (continued) RUSSIA e Overall ranking: 1st out of 25 e Income: 2nd out of 25 e Disposable income: 1st out of 25 e Luxuries: 15th out of 25 Fantastic broadening experience with huge potential financial benefits. - Expat in Russia e Wealth Hotspot: 1st out of 25

36 PAGE 36 I EXPAT EXPLORER SURVEY 2010 Russia (continued) Russia retains grip on Wealth Hotspot Russia, for the second year in a row, remains at the top of the Wealth Hotspot league table. Over one-third (36%) of expats in Russia earn over $250,000 per annum, over three-quarters (85%) say they have more disposable income since moving and over three-quarters (76%) are able to save more since relocating. The country is seen as a good choice for those looking for financial gain or to progress their career, with 76% of expats moving there for this reason and just under a quarter (24%) of expats moving from the finance and banking industry. Increased costs mean that those based in Russia are likely to face higher prices for everyday items than in their home nation. 76% claim that food and drink is more expensive in Russia when compared to their home nation and over half (55%) agree that housing is also more expensive. However, public transport is one area where expats make a saving when compared to their home nation; only 18% see spending on public transport as more expensive, compared to an overall average of 27%. Although Russia only scores 15th on the luxury scale, expats based there are still more likely to have domestic help (48% vs. 37%), own more than one property (27% vs. 18%) take more exotic holidays (67% vs. 46%) and own their own business (21% vs. 14%) than in their country of origin. However, the economic situation in Russia does prove to be a worry for some expats. 45% of expats based in Russia agree that the economic situation within the country has become worse over the past year, even though only 4% of those who thought the economy hadn t improved are actively looking to move home. In addition, although all expats in all BRIC countries agreed that the economic situation within their country had improved over the past year, those in Russia were least likely to agree with this statement (27%). INCOME RANK: 2nd OVERALL RANK: 1st DISP. INCOME LUXURY RANK: 1st RANK: 15th RANK: 1st Profile of Russia based expats surveyed in 2010: Sample size 33 WEALTH HOTSPOT Country of origin UK (42%); Netherlands (12%); USA (6%); Canada (6%); France (6%); Other (%) Occupation Finance (24%); Construction/ Manufacturing/Utilities (15%); Not stated (12%); Marketing (9%); IT (6%); Architecture/ Engineering (6%); Telecommunications (6%); Other (22%) Age (21%); (57%); 55+ (21%) Gender Male (82%); Female (18%)

37 PAGE 37 I EXPAT EXPLORER SURVEY 2010 Further information Contact: Karen Butcher Account Manager Hill & Knowlton Phone: +44 (0) karen.butcher@hillandknowlton.com Nick Woods Senior Account Executive Hill & Knowlton Phone: +44 (0) nick.woods@hillandknowlton.com Web: Blog: Twitter: