UAE jobs: Why the Emirates has one of the world's 'strongest hiring booms'


Deepthi Nair
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RELATED: UAE salary guide 2022: how much should you be earning?

The UAE continues to be a global talent magnet, ranking fifth in the world for total talent inflow after the US, the UK, Canada and France, a new report by LinkedIn in partnership with the Ministry of Economy has said.

Relative to its population, the inflow of talent to the Emirates is the highest in the world, the professional network service said.

“The UAE has recorded one of the strongest hiring booms globally, with hiring rates 36 per cent higher in December 2021 compared with December 2019,” said Rajai El Khadem, head of LinkedIn Mena for government and academia.

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“This represented one of the highest hiring recoveries in the world, trending above other developed economies.”

The jobs market in the UAE, the second-largest Arab economy, has recovered strongly from the pandemic-induced slowdown on the back of the government’s fiscal and monetary measures.

About 76 per cent of UAE employers plan to expand their workforce in 2022, a February survey by jobs portal Bayt.com and market research company YouGov said.

About two thirds of professionals in the UAE will actively look for new jobs in the first half of this year as business confidence and hiring activity return to pre-pandemic levels, recruitment company Robert Walters said.

Booming industries

Sectors in the UAE with the highest recovery in hiring levels include healthcare, software and information technology, all of which saw recruitment pick up after the immediate onset of the pandemic, the LinkedIn report said.

The retail and recreation and travel industries have also recovered and are above pre-pandemic levels, while other sectors such as construction, energy and mining are yet to catch up, the report said.

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The UAE also witnessed the “Great Reshuffle”, a talent shift in which an increasingly skilled, flexible and mobile workforce was drawn to opportunities and companies that match their ambitions, LinkedIn said.

Career switching has become more common in the UAE since the start of the Covid-19 pandemic. Professionals with transferable skills made career transitions out of struggling industries and into sectors that were booming,” Mr El Khadem said.

About 75 per cent of career transitions took place in 10 key industries. Software and IT services attracted 12.2 per cent of talent from other sectors, followed by corporate services (11.6 per cent), consumer goods (8.8 per cent), manufacturing (8.1 per cent) and finance (7.4 per cent), LinkedIn said.

Career change

Many employees switched their careers in 2021 to become “professional and personal coaches”, leading to a 208 per cent growth in these roles compared with the previous year.

Digital content management and self-employment are two examples of job domains that witnessed a three-fold growth in the number of roles in 2021,” Mr El Khadem said.

Entrepreneurship, business development, research, media and communications and marketing job functions also grew by more than 10 per cent in 2021 compared with 2020, LinkedIn said.

However, there was a decline in traditional jobs such as accounting, engineering, operations and purchasing, which shrank by more than 10 per cent, the report said.

Women in the UAE workforce

Women now make up a greater share of the UAE workforce, climbing to 29 per cent in 2021 from 23 per cent in 2011. This makes the Emirates one of the top-five most-improved countries in the world in terms of female representation in the workforce, the World Economic Forum’s Global Gender Gap Report 2021 said.

Sectors including public administration, healthcare, education, media and communications, and design improved female representation the most, LinkedIn said.

“Adjusting to hybrid working models in the post-pandemic labour market and offering more flexibility will possibly be a helping factor in attracting and retaining female talent,” the report said.

“More opportunities can be created for women by tapping into an extensive and diverse talent pool using a skills-first approach.”

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The UAE ranks first regionally in all digital skills categories, including disruptive digital skills, digital software and hardware skills, and applied digital skills, the report said.

The top digital disruptive skills in demand among employers in the UAE are FinTech, artificial intelligence, robotics and data science, LinkedIn said.

“Moving forward, governments as well as companies will be well-served investing in talent and skills development, particularly in the disruptive areas of AI, machine learning, the Internet of Things, robotics and coding,” Mr El Khadem said.

“Incubating the industries of the future won’t be possible without such extensive investment.”

Increase in sustainability-linked jobs

Meanwhile, Covid-19 has been a catalyst for the green economy. The pandemic has accelerated efforts by both the public and private sectors to support a national green recovery and facilitate the transition to a sustainable economy.

The share of green jobs and those that are shifting to become greener have been increasing in recent years, the report said.

Roles such as sustainability managers and environmental co-ordinators have recorded a steady increase in the UAE over the past five years, LinkedIn said.

The share of remote jobs also tripled in the UAE from April 2020 to December 2021.

“Going forward, companies should rethink pre-conceived notions of how work gets done and use technology and processes to create more resilient work environments,” Mr El Khadem said.

“Employers must replace traditional hiring practices with a skills-first approach. Adopting a skills-first approach will allow organisations to tap into diverse talent pools and fill talent gaps faster.”

Reward and recognition, for example, are now influenced by skills and not only by tenure or the fulfilment of standard benchmarks, the report said.

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THE BIO

Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.

Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.

Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.

Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.

 

 

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Courtesy: Crystal Intelligence

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Top investing tips for UAE residents in 2021

Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.

Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.

Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.

Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.

Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.

Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.

Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”

Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI. 

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Updated: March 28, 2022, 7:00 AM