My opinion only, but to try to answer both questions.....
Contract pilots are treated no differently than the rest. As decel says, we all work under the same draconian leadership which kind of bonds us together. The pilot group here is a friendly bunch from many different races and cultures and there's fun to be had.
I'm not sure of the conditions offered and how they differ specifically, however I understand the CP's are provided with accommodation and transport where permanent employees have to find their own using salary and allowances provided. With the increasing cost of housing here, that may be a decided bonus?
Coming here as a CP may also permit you to join permanently if they like you or leave without restriction to go to another Gulf operator if you choose. This is something a permanent employee cannot do due to an 'agreement' between managements.
We have not been told officially what the CP deal is, so it's not possible to compare salaries/package. Sorry.