Cash flow management is the top concern for 52 per cent of UAE business leaders, and talent attraction and retention came in second with 47 per cent, according to the Robert Half 2020 Salary Guide. Sarah Dea / The National
Cash flow management is the top concern for 52 per cent of UAE business leaders, and talent attraction and retention came in second with 47 per cent, according to the Robert Half 2020 Salary Guide. Sarah Dea / The National
Cash flow management is the top concern for 52 per cent of UAE business leaders, and talent attraction and retention came in second with 47 per cent, according to the Robert Half 2020 Salary Guide. Sarah Dea / The National
Cash flow management is the top concern for 52 per cent of UAE business leaders, and talent attraction and retention came in second with 47 per cent, according to the Robert Half 2020 Salary Guide. Sa

What is the UAE jobs outlook for 2020?


Nada El Sawy
  • English
  • Arabic

As optimism slowly returns to the UAE jobs market, employers are concerned about cash flow management and are struggling to attract and retain talent for 2020, a new study found. On the flip side, technologically savvy employees and those with ‘soft skills’, such as critical thinking and emotional intelligence, will be the most in demand and secure the largest pay raises.

Cash flow management is the top concern for 52 per cent of chief financial officers interviewed in the UAE, and talent attraction and retention came in second with 47 per cent, according to the 2020 Salary Guide from global recruitment consultancy Robert Half.

“Good candidates are always going to be in strong demand, whether that be across multinationals and SMEs,” says Gareth El Mettouri, associate director of Robert Half UAE. “Retaining and attracting the better talent is a top priority with employees providing incentives, such as ongoing training, flexible working, et cetera.”

The annual report identifies hiring trends based on several Robert Half surveys, including 75 interviews with CFOs and 200 responses from hiring managers across the UAE. It also documents average salaries, based on placements made by the recruiter and actual starting salaries paid by clients in five sectors: accounting and finance; financial services; technology; human resources and administration; and legal.

Positive factors influencing hiring in the UAE include a perceived return to optimism in the GCC, government initiatives that have increased the ease of doing business for foreigners and an entrepreneurial boom.

“The future is looking bright for the GCC region, as oil prices, retail and infrastructure investments bolster optimism in business leaders,” the report says.

Last week the International Monetary Fund revised the UAE’s gross domestic product growth forecast downwards to 1.6 per cent from 2.8 per cent in line with revisions in global growth figures. However, the projection for 2020 is 2.5 per cent, higher than the 1.7 per cent growth seen in 2018 and the paltry 0.5 per cent growth in 2017.

The fund assumes that the average price of oil will be $61.78 a barrel in 2019 and $57.94 a barrel in 2020. That is again much higher than the prices seen between 2014 and 2016, when it fell below $30.

A series of UAE government initiatives, such as 10-year long-term residency visas, have also helped spur new businesses and encourage foreign investment.

“It has given confidence to employers setting up here. A lot of limitations, a lot of roadblocks are being removed,” says Mr El Mettouri.

Candidates ... are not only moving for increase in salary. They're moving for stability, they're moving for opportunity, they're moving for personal growth development.

The UAE has also seen significant growth in e-commerce and FinTech start-ups. E-commerce transactions in the UAE are forecast to reach $16 billion (Dh59bn) in 2019 and grow 23 per cent annually between 2018 and 2022, according to a joint study by Dubai Economy and global payments company Visa. The number of FinTech start-ups in the Mena region is expected to multiply to around 250 by 2020 from six in 2005, according to a report by Mena Research Partners.

“The UAE market is starting to pick up. We’re seeing a lot of SMEs and new start-ups and FinTech companies. All these companies are adding headcount,” says Mr El Mettouri.

Here are some of the insights for the UAE jobs market in 2020:

Salaries

Last week Mercer published its annual Total Remuneration Study, forecasting a 4.5 per cent increase in overall base salaries in the UAE in 2020. However, there are a couple of caveats to this forecast. Firstly, the previous report had predicted a 4.8 per cent increase in 2019, but the actual increase was 4.5 per cent. Secondly, the percentage increase is only on the base salary.

“Depending on the pay mix between base salary (which typically varies between 50/50 and 70/30, although there are certainly outliers), the real fixed salary increase for most individuals would vary somewhere between 2.2 per cent and 3 per cent,” says Ted Raffoul, career products leader for the Middle East and North Africa at Mercer.

Ian Giulianotti, executive director of recruitment and executive search at Nadia Global, says the Gulf recruiter found the “absolutely highest base salary rise was 2 per cent” in 2019. “The justification [from employers] was that rents are going down by as much as 20 per cent,” he says.

The salary increase is still higher than inflation, which the latest IMF report estimates at minus 1.5 per cent in 2019 and 1.2 per cent in 2020.

The percentage also depends on the type of company. Nadia Global’s client base reflects the make-up of the UAE market, which is primarily small and medium enterprises. Of the 500 companies included in Mercer’s study, the majority are multinationals and large employers with an average headcount of 520 employees.

Robert Half’s study did not specify salary percentage increases, saying that “although salary increases are being awarded in some large organisations, many employers are struggling to move beyond their existing salary bandings”.

More than two thirds (67 per cent) of senior business leaders (chief financial officers and hiring managers) said they have denied an employee promotion in the past three years, Robert Half found. At the same time, about a third have increased their base offering to help fill a vacant role. For 13 per cent of employers, salary is a barrier to securing the top professionals.

Employers have to pick and choose which jobs warrant a salary increase. Mr El Mettouri says the positions that have seen a pay rise include chief financial officers within industry and commerce; financial planning and analysis roles; compliance and risk roles within banking; chief digital officers within technology; heads of recruitment and learning and development roles within HR and heads of legal and English-Arabic bilingual lawyers within legal.

Hiring strategies

“Although many larger organisations still have hiring freezes in place, there are plenty of opportunities in the growing start-up community, most notably among FinTech companies,” according to the Robert Half report.

Mr El Mettouri says some companies have had hiring freezes in place for “about the last 12 to 18 months, maybe slightly longer”. There are signs, however, that capital expenditure is increasing, which could mean adding head count.

“Within multinationals, we are still seeing roles being replaced when people leave. But we are also starting to see capex spend coming back to these multinationals, so they are starting to open up to hiring again,” he says.

More local hires

The Mercer report found that the voluntary turnover rate, meaning the percentage of people voluntarily leaving their jobs, increased to 7 per cent in 2019 from around 5 per cent in the last couple of years. Meanwhile, the involuntary turnover rate, the percentage of people being forced to leave their jobs, decreased from 8 per cent in 2016 to 4.5 per cent this year.

These percentages signify an active job market, but also more local hiring. Robert Half and Nadia Global have noticed the same trend. “A lot of our clients are wanting candidates with local experience. We’re not seeing as many clients relocating talent into the market, so that drives movement. We’ve seen it more in the past 12 months,” Mr El Mettouri says.

“Ninety-nine per cent of employers in the GCC will want people who are currently resident in the country that they’re hiring,” Mr Giulianotti concurs.

Digital transformation

As more businesses, such as banks, undergo digital transformation “a lot of clients are now really focusing on the digital and technology skill set of talent when they’re hiring,” says Mr El Mettouri.

Nearly two-thirds (63 per cent) of UAE business leaders said technological understanding is the top skill needed for a digital future, while 52 per cent chose communication skills and 51 per cent technical know-how. Around half said they are planning employee training sessions for new technologies in response to those needs.

Soft skills

Robert Half’s research found that soft skills, such as communication, strategic thinking and adaptability "will rise to prominence in the next few years as workforces change to meet the challenges that technology presents”.

For example, in HR and administration, the soft skills in demand include change management, emotional intelligence, leadership and critical observation.

“This is the first time that we’ve broken out soft skills in our salary guide, because there was such an emphasis on it,” Mr El Mettouri says.

Flexible working

Hiring managers not able to offer a higher salary are attracting top talent by adding on benefits, including flexible working. Candidates at all experience levels are requesting flexible working during the interview process, according to the Robert Half study.

“Flexible working can mean different things to different people. It can mean starting work early, finishing early. For a parent, it can mean finishing at lunchtime, doing a school run and logging back on at home,” says Mr El Mettouri. “We are seeing a lot more employers offering it as a benefit to attract and retain the current talent in the workforce.”

With the competition for talent and concerns over cash flow, employers are having to be more creative. But the good news is that employees are looking for perks beyond salaries.

“Candidates at the moment are not only moving for increase in salary,” says Mr El Mettouri. “They’re moving for stability, they’re moving for opportunity, they’re moving for personal growth development.”

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Race card

5pm: Maiden (PA) Dh80,000 (Turf) 1,600m
5.30pm: Handicap (PA) Dh80,000 (T) 1,600m
6pm: Arabian Triple Crown Round-1 Listed (PA) Dh230,000 (T) 1,600m
6.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,400m
7pm: Maiden (PA) Dh80,000 (T) 1,200m
7.30pm: Handicap (TB) Dh100,000 (T) 2,400m

The Details

Kabir Singh

Produced by: Cinestaan Studios, T-Series

Directed by: Sandeep Reddy Vanga

Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa

Rating: 2.5/5 

MATCH INFO

Watford 2 (Sarr 50', Deeney 54' pen)

Manchester United 0

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

The biog

Favourite book: You Are the Placebo – Making your mind matter, by Dr Joe Dispenza

Hobby: Running and watching Welsh rugby

Travel destination: Cyprus in the summer

Life goals: To be an aspirational and passionate University educator, enjoy life, be healthy and be the best dad possible.

Asia Cup 2018 final

Who: India v Bangladesh

When: Friday, 3.30pm, Dubai International Stadium

Watch: Live on OSN Cricket HD

Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday. 

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow. 

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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THE SPECS

Engine: 4.4-litre V8

Transmission: Automatic

Power: 530bhp 

Torque: 750Nm 

Price: Dh535,000

On sale: Now

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

Meydan race card

6pm Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m 

6.35Dubai Trophy – Conditions(TB) $100,000 (Turf) 1,200m
1,800m 

7.10pm Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m ,400m 

7.45pm Al Rashidiya – Group 2 (TB)  $180,000  (T) 1,800m 

8.20pm Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

8.55pm Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

9.30pm Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m