The UAE has a tightening labor market where 85% of the workforce comes from overseas. It has a population of 9.2 million people, with Emiratis making up only 1 million and expats from places like India, Pakistan, Bangladesh, the Philippines and Western countries making up the other 8 million. Major industries include petroleum, fishing, manufacturing and construction. The job market is affected by rules like employers sponsoring visas and medical tests being required. While jobs are growing, attracting and retaining talent is challenging due to factors like a small local population and competition from other countries. Salaries vary greatly between local, Asian and Western employees.
The Knowledge-based Economy and the Arab Dream: What Happened?Wesley Schwalje
Many of the Arab countries may be pursing knowledge-based economic development strategies based on flawed practices from countries perceived to have made successful transitions to knowledge-based economies. Several countries presented as archetypal models of the knowledge-based economy transition face substantial economic development problems, such as record high youth unemployment rates, with tremendous societal implications.
The importation of the knowledge economy concept to the Arab region was accompanied by an emphasis on the welfare of individuals being tied directly to their success in gaining and maintaining higher qualifications and skills which could be sold in the labor market to match high wage employment opportunities expected to be generated by emerging high skill, knowledge-based industries. However, the high wage, high skills jobs associated with knowledge-based industries have not materialized in the region and are increasingly subject to competition from the emergence of low wage, high skill workers in other developing countries.
Towards New Knowledge Based Policies for Development in the Arab Economies & ...Wesley Schwalje
The European Union’s Forum Euroméditerranéen des Instituts de Sciences cited Tahseen Consulting's research on the changing post-Arab Spring conceptualization of knowledge-based economy as a potential model for a policy road map to restructure regional economies.
Region carries high opportunities for foreign firms to establish their busine...Sparkles Soft
The geographical location of UAE provides ad its liberal climate has helped it to establish extensively cooperative relations with other countries as well as to get access to more efficient infrastructure with developed air and sea connections
Why Qatar Needs a New Technical Vocational Education and Training Strategy NowWesley Schwalje
Beginning in the late Nineties, Qatar launched a comprehensive set of education reforms to more effectively align its education and training system with its macroeconomic policies aimed at advancing towards a knowledge-based economy. However, technical vocational education and training (TVET) has not been a significant focus of educational reforms.
India to Dubai - Guide for Indian startups to expand into DubaiiB Hubs
This document is intended to provide insights and best practices for Indian startups expanding their business to Dubai.
There will be a series of similar magazines which will help Indian startups expand to other countries as well.
India to Saudi Arabia - Guide for Indian startups to expand into Saudi ArabiaiB Hubs
This document is intended to provide insights and best practices for Indian startups expanding their business to Saudi Arabia.
There will be a series of similar magazines which will help Indian startups expand to other countries as well.
Thanks to Saudi Arabian General Investment Authority(SAGIA) for supporting us in preparing the magazine
The Knowledge-based Economy and the Arab Dream: What Happened?Wesley Schwalje
Many of the Arab countries may be pursing knowledge-based economic development strategies based on flawed practices from countries perceived to have made successful transitions to knowledge-based economies. Several countries presented as archetypal models of the knowledge-based economy transition face substantial economic development problems, such as record high youth unemployment rates, with tremendous societal implications.
The importation of the knowledge economy concept to the Arab region was accompanied by an emphasis on the welfare of individuals being tied directly to their success in gaining and maintaining higher qualifications and skills which could be sold in the labor market to match high wage employment opportunities expected to be generated by emerging high skill, knowledge-based industries. However, the high wage, high skills jobs associated with knowledge-based industries have not materialized in the region and are increasingly subject to competition from the emergence of low wage, high skill workers in other developing countries.
Towards New Knowledge Based Policies for Development in the Arab Economies & ...Wesley Schwalje
The European Union’s Forum Euroméditerranéen des Instituts de Sciences cited Tahseen Consulting's research on the changing post-Arab Spring conceptualization of knowledge-based economy as a potential model for a policy road map to restructure regional economies.
Region carries high opportunities for foreign firms to establish their busine...Sparkles Soft
The geographical location of UAE provides ad its liberal climate has helped it to establish extensively cooperative relations with other countries as well as to get access to more efficient infrastructure with developed air and sea connections
Why Qatar Needs a New Technical Vocational Education and Training Strategy NowWesley Schwalje
Beginning in the late Nineties, Qatar launched a comprehensive set of education reforms to more effectively align its education and training system with its macroeconomic policies aimed at advancing towards a knowledge-based economy. However, technical vocational education and training (TVET) has not been a significant focus of educational reforms.
India to Dubai - Guide for Indian startups to expand into DubaiiB Hubs
This document is intended to provide insights and best practices for Indian startups expanding their business to Dubai.
There will be a series of similar magazines which will help Indian startups expand to other countries as well.
India to Saudi Arabia - Guide for Indian startups to expand into Saudi ArabiaiB Hubs
This document is intended to provide insights and best practices for Indian startups expanding their business to Saudi Arabia.
There will be a series of similar magazines which will help Indian startups expand to other countries as well.
Thanks to Saudi Arabian General Investment Authority(SAGIA) for supporting us in preparing the magazine
Tahseen Consulting Analysis on Building a Sustainable Economy in the UAE Cite...Wesley Schwalje
When it comes to news on economic trends and policies in the UAE, government and business leaders turn to the Abu Dhabi Council for Economic Development’s Economic Review. Tahseen Consulting is honored to have its work on building sustainable economies in the Arab World highlighted in the publication’s April issue. We have posted the full article below.
Tahseen Consulting’s Chief operating Officer, Wes Schwalje, spoke with representatives from the Abu Dhabi Council for Economic Development regarding his thoughts on the how the concepts of sustainability and knowledge-based economy are evolving into economic policies in the UAE. In a wide-ranging discussion, Schwalje discusses the UAE’s aspirations, its achievements thus far, and potential barriers to progress.
Aranca has compiled a special report on Saudi Arabia’s journey till 2025, highlighting the Kingdom’s economic potential, its influence on the region’s economy and opportunities available. Check out the report here!
The State of Higher Education in the Middle EastWesley Schwalje
This article references a Tahseen Consulting study in which we explored the barriers facing women in entering science, technology, engineering, and mathematics fields in the GCC in an article in Forbes Middle East. The original article is available at http://tahseen.ae/blog/?p=980.
Emerging Dismal Scenario in Indian Emigration System Leads to Precipitous Slu...Asif Nawaz
Indo-Saudi relation has witnessed upswing during past few decades, reinforcing economic and socio-cultural ties. Beside trade, investment and cultural ties, India enjoys a very special kind of relation with the strongest economy of the Gulf region. Currently, around 3 million plus strong Indian community are living and working in the Saudi Arabia, which is the largest expatriate community in the Kingdom, contributing around 30 per cent of the total expatriates of KSA. In last 10 years (barring 2016), India succeeded in deploying around 7.50 lakh Indian blue collar workers in GCC countries, out of them roughly 3 lakh arrived in KSA. So, there was a considerable growth in the outflow of Indian workers to the region. However, with the emergence of some new phenomena on the India’s side of policy makers since 2014, there has been a constant decline in the outflow of Indian blue collar workers, resulting nearly 50 percent downfall in last two years. This study strived to discover the causes of decline in India’s share of migrants’ employment in the Gulf nations in general and in KSA in particular, while bringing some very striking facts and figures that how this decline did not resemble in other countries which also send workers to the Gulf. Alongside this, the study also explored how and why foreign employers (FEs) were compelled not to hire workers from India but from Pakistan and Bangladesh. The result of the study demonstrated that when we observe India, Pakistan, and Bangladesh together in terms of their share of blue collar workers in KSA, we find that till 2014, India’s share in the oil-rich Saudi Arabia was on average 50 percent, for Pakistan it was 48 percent and for Bangladesh it was merely 2 percent. But, in 2016, within a period of 2 years, India’s share shockingly slumped down to 21 percent, while Pakistan and Bangladesh unexpectedly rose up to 60 and 19 percent respectively. Furthermore, this is not only in the case of Saudi Arabia. If we go country by country, we will find the same situation in almost whole Gulf region. In the end, the study suggests how the serious situation has surfaced on the fate of Indian migrant workers, and tries to fetch the government’s attention to take cognizance of this issue and act swiftly to resolve it as soon as possible for avoiding further downfall of Indian workers in oil-rich Gulf nations.
The research is based on an analytical and investigative study of the data available on websites of India, Pakistan and Bangladesh, which deal with overseas employment’s regulation and statistics. Moreover, to illustrate the argument with more clarity, a number of tables and charts have been drawn with lots of interesting figures.
Next generation Africa-GCC Business Ties in a Digital EconomyDubaiChamber
Next-generation Africa-GCC Business Ties in a Digital Economy is an Economist Intelligence Unit report, sponsored by Dubai Chamber of Commerce and Industry. The report explores the perspectives of young entrepreneurs and investors in Africa and the Gulf Cooperation Council (GCC) countries on building business relationships, identifying challenges to overcome and spotting opportunities that await. The report is based on extensive desk research and in-depth interviews with entrepreneurs and investors in Africa and the GCC, with a focus on millennials. The interviews were conducted between June and August 2017
The UAE has been able to quickly and successfully transform itself from an oil-based economy into an innovative, knowledge-based economy; actively promoting innovation through policies and initiatives aimed at developing the three pillars of the innovation ecosystem – human, financial and technological capital
Being the first-ever World Expo to be held in the MENA region and themed as ‘Connecting Minds, Creating the Future’, Dubai Expo 2020 is expected to strengthen the innovation ecosystem in the region.
UAE’s private sector will need to play an increasingly important role in supporting the government’s agenda and promoting the national innovation ecosystem to ensure that the UAE is able to maintain and strengthen its position as a hub for innovation, not just in the Middle East, but across the world.
Skills Gap - Canada - Commentary and Analysis - September 2018paul young cpa, cga
The role of government is defined the educational programs required to support the economy. Too many govts across
Canada have pushed programs that do not provide meaningful employment
The world continues to change as such governments need to address all their policies that support economic growth
Immigration should not be based on quota, but align where there voids in employment not filled by educational programs
Canada needs to become more competitive through reducing its reforming areas like taxation, regulations, trade/fipa deals and hydro rates.
All levels of government and the private sector need to fixed the education systems to ensure people have skills for today and tomorrow
Africa is slowly emerging as an engine of growth for the global economy. With a projected average growth of about 5.0% between 2013-25, it is second only to the emerging economies
of Asia. The past decade, in fact, has only served to quicken Africa’s economic pulse. Its continuing rapid growth presents a very large opportunity for nations and companies to
contribute to the development of this billion-people continent.
As Africa accelerates its own process of internal reform and increases the pace of its global engagement reaching out to newer markets across the globe, India needs to keep pace in
enhancing its economic engagement with the region.
Today, India has the opportunity to propel this momentum further with a special value proposition to partner in Africa’s development based on our geographic proximity, cultural
affinity, IT/engineering talent, entrepreneurship and low cost operating models. Building on these strengths, India should develop a new approach where Indian industry acts as a
“solutions partner” to solve business and developmental challenges, and benefits from the business opportunities that this opens up.
The Promise of a Better Tomorrow
The continent’s long-term growth prospects are strong, propelled by both external trends in the global economy and internal changes in the continent’s societies and economies.
Presented by Michael Mithika, SAM Course Director - School of African Microfinance
Tahseen Consulting Analysis on Building a Sustainable Economy in the UAE Cite...Wesley Schwalje
When it comes to news on economic trends and policies in the UAE, government and business leaders turn to the Abu Dhabi Council for Economic Development’s Economic Review. Tahseen Consulting is honored to have its work on building sustainable economies in the Arab World highlighted in the publication’s April issue. We have posted the full article below.
Tahseen Consulting’s Chief operating Officer, Wes Schwalje, spoke with representatives from the Abu Dhabi Council for Economic Development regarding his thoughts on the how the concepts of sustainability and knowledge-based economy are evolving into economic policies in the UAE. In a wide-ranging discussion, Schwalje discusses the UAE’s aspirations, its achievements thus far, and potential barriers to progress.
Aranca has compiled a special report on Saudi Arabia’s journey till 2025, highlighting the Kingdom’s economic potential, its influence on the region’s economy and opportunities available. Check out the report here!
The State of Higher Education in the Middle EastWesley Schwalje
This article references a Tahseen Consulting study in which we explored the barriers facing women in entering science, technology, engineering, and mathematics fields in the GCC in an article in Forbes Middle East. The original article is available at http://tahseen.ae/blog/?p=980.
Emerging Dismal Scenario in Indian Emigration System Leads to Precipitous Slu...Asif Nawaz
Indo-Saudi relation has witnessed upswing during past few decades, reinforcing economic and socio-cultural ties. Beside trade, investment and cultural ties, India enjoys a very special kind of relation with the strongest economy of the Gulf region. Currently, around 3 million plus strong Indian community are living and working in the Saudi Arabia, which is the largest expatriate community in the Kingdom, contributing around 30 per cent of the total expatriates of KSA. In last 10 years (barring 2016), India succeeded in deploying around 7.50 lakh Indian blue collar workers in GCC countries, out of them roughly 3 lakh arrived in KSA. So, there was a considerable growth in the outflow of Indian workers to the region. However, with the emergence of some new phenomena on the India’s side of policy makers since 2014, there has been a constant decline in the outflow of Indian blue collar workers, resulting nearly 50 percent downfall in last two years. This study strived to discover the causes of decline in India’s share of migrants’ employment in the Gulf nations in general and in KSA in particular, while bringing some very striking facts and figures that how this decline did not resemble in other countries which also send workers to the Gulf. Alongside this, the study also explored how and why foreign employers (FEs) were compelled not to hire workers from India but from Pakistan and Bangladesh. The result of the study demonstrated that when we observe India, Pakistan, and Bangladesh together in terms of their share of blue collar workers in KSA, we find that till 2014, India’s share in the oil-rich Saudi Arabia was on average 50 percent, for Pakistan it was 48 percent and for Bangladesh it was merely 2 percent. But, in 2016, within a period of 2 years, India’s share shockingly slumped down to 21 percent, while Pakistan and Bangladesh unexpectedly rose up to 60 and 19 percent respectively. Furthermore, this is not only in the case of Saudi Arabia. If we go country by country, we will find the same situation in almost whole Gulf region. In the end, the study suggests how the serious situation has surfaced on the fate of Indian migrant workers, and tries to fetch the government’s attention to take cognizance of this issue and act swiftly to resolve it as soon as possible for avoiding further downfall of Indian workers in oil-rich Gulf nations.
The research is based on an analytical and investigative study of the data available on websites of India, Pakistan and Bangladesh, which deal with overseas employment’s regulation and statistics. Moreover, to illustrate the argument with more clarity, a number of tables and charts have been drawn with lots of interesting figures.
Next generation Africa-GCC Business Ties in a Digital EconomyDubaiChamber
Next-generation Africa-GCC Business Ties in a Digital Economy is an Economist Intelligence Unit report, sponsored by Dubai Chamber of Commerce and Industry. The report explores the perspectives of young entrepreneurs and investors in Africa and the Gulf Cooperation Council (GCC) countries on building business relationships, identifying challenges to overcome and spotting opportunities that await. The report is based on extensive desk research and in-depth interviews with entrepreneurs and investors in Africa and the GCC, with a focus on millennials. The interviews were conducted between June and August 2017
The UAE has been able to quickly and successfully transform itself from an oil-based economy into an innovative, knowledge-based economy; actively promoting innovation through policies and initiatives aimed at developing the three pillars of the innovation ecosystem – human, financial and technological capital
Being the first-ever World Expo to be held in the MENA region and themed as ‘Connecting Minds, Creating the Future’, Dubai Expo 2020 is expected to strengthen the innovation ecosystem in the region.
UAE’s private sector will need to play an increasingly important role in supporting the government’s agenda and promoting the national innovation ecosystem to ensure that the UAE is able to maintain and strengthen its position as a hub for innovation, not just in the Middle East, but across the world.
Skills Gap - Canada - Commentary and Analysis - September 2018paul young cpa, cga
The role of government is defined the educational programs required to support the economy. Too many govts across
Canada have pushed programs that do not provide meaningful employment
The world continues to change as such governments need to address all their policies that support economic growth
Immigration should not be based on quota, but align where there voids in employment not filled by educational programs
Canada needs to become more competitive through reducing its reforming areas like taxation, regulations, trade/fipa deals and hydro rates.
All levels of government and the private sector need to fixed the education systems to ensure people have skills for today and tomorrow
Africa is slowly emerging as an engine of growth for the global economy. With a projected average growth of about 5.0% between 2013-25, it is second only to the emerging economies
of Asia. The past decade, in fact, has only served to quicken Africa’s economic pulse. Its continuing rapid growth presents a very large opportunity for nations and companies to
contribute to the development of this billion-people continent.
As Africa accelerates its own process of internal reform and increases the pace of its global engagement reaching out to newer markets across the globe, India needs to keep pace in
enhancing its economic engagement with the region.
Today, India has the opportunity to propel this momentum further with a special value proposition to partner in Africa’s development based on our geographic proximity, cultural
affinity, IT/engineering talent, entrepreneurship and low cost operating models. Building on these strengths, India should develop a new approach where Indian industry acts as a
“solutions partner” to solve business and developmental challenges, and benefits from the business opportunities that this opens up.
The Promise of a Better Tomorrow
The continent’s long-term growth prospects are strong, propelled by both external trends in the global economy and internal changes in the continent’s societies and economies.
Presented by Michael Mithika, SAM Course Director - School of African Microfinance
FINCA’s experience implementing Agency & Mobile Banking in Africa.
Presented by Nathan Were, MCF Project Manager, Africa. To the School of African Microfinance Class of 2015
Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a financial plan, it's easier to make financial decisions and stay on track to meet your goals.
Advances and Management of Diabetes MellitusPratiksha Doke
Diabetes mellitus is an endocrinological and/or metabolic disorder with an increasing global prevalence and incidence. High blood glucose levels are symptomatic of diabetes mellitus as a consequence of inadequate pancreatic insulin secretion or poor insulin-directed mobilization of glucose by target cells. Diabetes mellitus is aggravated by and associated with metabolic complications that can subsequently lead to premature death. This presentation explores diabetes mellitus in terms of its types, causes and management interventions for improved lifestyle for patient.
The future of work is within sight. New technology, geopolitical changes and the ongoing skills shortage are affecting organizations across the
globe, and emerging markets such as the UAE will need to adapt to be successful in the new working world.
The Middle East is a treasure trove of jobs and has always been a frontier for the best job opportunities across a wide spectrum of sectors. This Slide presents the current career status in the MIddle East, targeting the career opportunities, country wise status, different recruitment trends and much more.
UAE is one of the best countries for opening a new business venture. UAE agencies have received a reputation over the years for the fast production of first-class excessive-upward thrust condo blocks and workplace towers. The adoption of specialised creation techniques, including reclamation and design-and-construct techniques and oil exporter, has made UAE a regional leader. UAE is a leading expert in high-upward thrust design, slope design, high-density design and designing with area constraints all are having the involvement of technology.
UAE at its best
The United Arab Emirates (UAE) is a rapidly developing economy with an approximate population of 8 million. Its GDP was estimated at US$390bn in 2013, making it the 29th largest economy in the world and the second largest in the Middle East. Its GDP per capita is approximately US$43,000, the 19th highest globally.
The UAE Business Setup Guide is an initiative by Creative Zone that provides entrepreneurs and business owners with every vital information they need when considering setting up and operating a business in the UAE. The guide seeks to answer some of the most important questions investors have regarding their business, starting from company incorporation, labour laws and other human resource regulations, sales and marketing, tax and accounting, intellectual property protection, compliance to scaling and funding opportunities.
Main chapters
1. Doing Business in the UAE
2. Company Structures
3. Jurisdictions: Free Zones v/s Mainland
4. Compliance and Regulations
5. Incubators and Accelerators
6. Business Support Services
7. Relocation
Expats come to tax-free United Arab Emirates hoping to pocket the savings. Many are surprised by a range of cost of living shocks, which can undermine the financial aspirations of the unprepared.
Saudi Arabia economic transition beyond oilBruno Gremez
Very interesting report prepared by Mc Kinsey in December 2015, which resonates today as we have heard about many key initiatives taken by Crown Prices Mohammad bin Salman.
Employment in Saudi Arabia Whitepaper by Proven SAAlexis Aboagye
Employment in Saudi Arabia is changing at a rapid pace brought about from demographic changes as a result of government reforms, an increase in global business, a younger entrepreneurial generation and the implementation of robotics and automation of job roles. However, for now at least, people still remain the most essential part of any business.
Sourcing the right employees is essential to the early success of entering a new market and the Saudi Arabia employment processes can be daunting in comparison to a company’s originating country. There are many new employment regulations to implement and corporate immigration needs to follow an often-unknown process in order to be successful and compliant.
Efficient and transparent employee management has a positive effect on the engagement and productivity of teams and companies gaining local knowledge enables this.
New base energy news 13 july 2020 issue no. 1355 by senior editor khaled ...Khaled Al Awadi
NewBase Energy News 13 July 2020 - Issue No. 1355 by Senior Editor Khaled Alawadi.docxNewBase Energy News 13 July 2020 - Issue No. 1355 by Senior Editor Khaled Alawadi.docx
A Winning and Comprehensive Market Research Proposal for the Deployment of Ov...Jandel Gimeno
This study was done as part of my final assessment/final interview for the Marketing Researcher position at Ikon Solutions. The study shows some of the significant information that should be known when doing business in GCC Region, more particularly in the UAE.
1. Recruitipedia: UAE
Welcome to Recruitipedia, ExecutiveSurf’s occasional review of the talent landscape around the
world. This time we are focusing on the United Arab Emirates (UAE). The facts reveal a tightening
labour market, where 85% of the workforce comes from overseas.
AT A GLANCE
Established in 1971, the UAE is a
federation of seven emirates - Abu Dhabi,
Ajman, Dubai, Fujairah, Ras al-Khaimah,
Sharjah and Umm al-Quwain - with some
powers delegated to the federal
government and others reserved to
member emirates.
The population of the UAE is around 9.2
million, of which about 1 million are
Emiratis and 8 million are expatriates,
including a big share of nationals from
2. South Asia (India, Pakistan, Bangladesh, Nepal and Sri Lanka), Philippines, Egypt, as well as expats
from Western Europe, Australia and Latin America.
The official Language is Arabic but the main business language is English. Other spoken languages
are Persian, English, Hindi and Urdu.
The major industries are petroleum and petrochemicals, fishing, aluminium, cement, fertilisers,
commercial ship building and repair, construction materials, handicrafts and textiles. Recent
growth areas are education, healthcare, tourism, hospitality and logistics, while industries in
decline are general manufacturing and automotive.
Native Emiratis make up a very small percentage of the workforce. It is estimated that about 27%
of the total population and over 50% of the workforce in the UAE are Indians.
JOB MARKET
The UAE's job market is affected by some well known peculiarities compared with other parts of
the world. For example, the working week is from Sunday to Thursday; once salary and perks have
been negotiated and agreed, that remuneration will be maintained for the duration of the contract
– usually three years; and individuals pay no income tax and the only corporation tax levied relates
to foreign banks and oil companies; there are 10 national holidays in the UAE, but Islamic holiday
dates might shift according to the phase of the moon.
There are also some practical considerations to keep in mind that affect the recruitment process.
Before working in the UAE two documents are required: a residence permit and a working visa.
These are obtained via sponsorship by an employer, which must be registered with the Ministry of
Labour. The UAE has designated a number of Free Zone areas to provide exemption from many UAE
laws to encourage foreign investment. If an employee is hired by an organisation based in a Free
Zone, the Free Zone Authority can be the sponsoring entity. The employer can sponsor the work
visa, under the condition the candidate passes a medical test for HIV and hepatitis and obtains a
health card. Therefore it is routine to be asked to take a full medical before receiving a binding
job offer.
Labour Law applies to employees working in the UAE, whether they are UAE nationals or not,
except for employees working in the free zones, whose employment is governed by the
employment law of that area.
3. In addition, it should be taken into account that with so many international candidates eager to
work in the UAE, a few unscrupulous recruitment agencies will attempt to collect additional fees
from job seekers, an illegal practice that should be reported to the government’s labour
department.
In recent months the job market in the UAE has been picking up; employers are hiring and
multinational recruitment accelerates. Most jobs in the UAE will be found in Abu Dhabi and Dubai.
Employers are in fierce competition for junior executives; additionally, there are many graduate
job opportunities in the UAE, especially in the energy sector, requiring skills in science,
technology, engineering and mathematics.
The UAE job market is facing some challenges. The country's small, relatively poorly educated
native population is predominantly employed in the public sector and businesses must import
foreign talent for a wide variety of positions ranging from low-skilled construction to highly skilled
oil and gas workers and executives. There is a lack of talent in mid-level roles in all sectors but in
the healthcare, PR and publishing sectors in particular, the country is suffering acute shortages.
It has also become increasingly difficult to attract professionals from India, traditionally a major
source of talent. This is in part due to economic reforms introduced by Indian prime minister Modi,
where Indian executives are seeing a growth in career opportunities at home; only those with
specialist skills in technical or management roles will benefit from significant salary increases by
re-locating to UAE.
Furthermore, employers seeking to hire talent from countries facing political tension or civil war
may run into difficulty. Visa applications for nationals of these countries are frequently rejected or
delayed.
Talent retention is also a challenge for most HR departments. The UAE is often considered a
temporary stepping stone in international careers, a stop aimed at rapid capital accumulation. As a
result, while working in the UAE, executives tend to “job-hop”, motivated by higher salaries.
During 2014, Gulf salaries rose by their highest average rate since the financial crisis (6.7%) and
they are forecast to have increased at an even higher rate during 2015. Dubai and Abu Dhabi are
trying to develop alternative strategies to attracting and retaining talent from abroad, for example
investing in advanced education systems, but so far this strategy has not made significant inroads.
Given that financial package is the main driver for the executive workforce in the UAE, employers
will add many perks and incentives in order to attract the best, including a car, housing, and
schooling. UAE Federal Labour Law and the Emirate of Dubai does not have a provision for
minimum or maximum wages and salary packages are mostly decided through hard negotiation.
Salaries vary greatly depending on the nationality of the candidate, whatever the position. Vast
4. differences continue to exist between Asian, Arab and Western salaries. An Asian CEO/MD of a
multinational can earn 22.7% less than his Arab counterpart and 18.4% less that his Western
colleague.
A standard executive employment package in the UAE consists of:
▪ Basic salary
▪ 30-days annual paid leave (21 for the first year)
▪ Medical insurance
▪ Recruitment and visa-processing fee and associated costs
▪ Bonus
▪ Return flight to home country at the end of the contract
In addition to these, there are a number of benefits that are often negotiated:
▪ Relocation allowance
▪ Accommodation
▪ Car/ transport
▪ Regular annual family return flights home
▪ Phone
▪ Schooling
▪ Health club family membership
It is important to note, and it sometimes comes as a brutal surprise to foreign recruiters, that once
all benefits have been priced up, the basic salary component often represents less than 50% of the
total, wiping out any benefit gained from an absence of social charges.
As Dubai Expo 2020 approaches, it is estimated that over 275,000 jobs will be created in and
around the region to service the event, across sectors including tourism, aviation, construction and
real estate, engineering and infrastructure, logistics and transportation, and hospitality and retail.
Real estate will most likely be the major beneficiary of the expo, and that will have a significant
impact on employers’ hiring budgets.
5. RECRUITMENT TRENDS
The oil industry has traditionally been the driver of growth in the UAE’s professional recruitment
market. This year, the professional recruitment market will see a 5 to 10% growth rate in the
number of new jobs available, with the number of job seekers significantly decreasing.
UAE employers rely on recruitment agencies, due to the high percentage of expat talent. Dubai is
home to hundreds of different recruitment organisations that serve the Middle East: from
generalists to niche players. Most recruitment outfits in the UAE offer both executive and non-
executive recruitment services for both permanent and contract roles.
Despite this variety, when recruiting for senior roles, companies often rely on recruitment
providers based in European countries, mainly London. The stated reason for this is one of
discretion although it’s tempting to think it may have more to do with the aggressive sales policies
of those companies.
Online hiring is constantly gaining
currency. With 59% share, professional
social networks have become an
essential source of quality hires and
relationship building with job seekers,
while job boards continue to be a key
piece in the recruiting mix.
6. There are over 5.4 million active social media accounts which amount to more than 56% of the
population. On average, UAE residents spend close to 3.6 hours on social media.
In 2015, the UAE experienced a 23% growth in active social media accounts, led by Facebook (39%).
The country has consistently boasted one with the highest LinkedIn penetration rates in the Arab
world (24%) and ranks 22nd globally by number of LinkedIn users.
Google+ and Twitter are gaining ground on Facebook, already capturing 27% of the UAE’s social
media pie. Instagram seems to have had a slow start in the UAE, as only 18% of the population
uses the platform.
Going forward, there are certain areas that will continue to remain dominant, such as
leveraging social professional networks to source passive candidates.
From a cultural perspective, building a strong network is of major importance for Emiratis. A
correctly formatted request to connect on a social network to an Emirati professional has
around a 90% chance of being accepted and will lead to a conversation about a specific career
or business opportunity. Frustratingly for the recruiter, for exactly the same cultural reasons,
an openness to talk about a role is by no means an expression of genuine interest.
December, 2015