Employees in the UAE face a contraction in salaries this year as a flood of new residents comes to the country, a senior executive at recruitment company Cooper Fitch said.
Hiring activity in the Emirates increased 3 per cent for the three months to the end of September as business activity and new orders picked up, Cooper Fitch’s third quarter Gulf employment index found. Meanwhile, about 200,000 people are moving to the country each year.
The Emirates' population is booming, and job seekers in many professions far outnumber the available roles. People are coming in and taking jobs for very low salaries to get their foot in the door, according to Trefor Murphy, founder and chief executive of Cooper Fitch.
“Despite the 5 per cent to 6 per cent population growth in the UAE annually, the skills and experience of new arrivals do not match the requirements of employers, he told The National.
“New people are looking at doing anything to get gainful employment. For instance, we've had dentists come to the UAE to work as real estate agents.”
When employers have access to people who are willing to take a job that's three levels below their skills, it makes it harder for existing talent in companies to get a “justifiable wage increase”, Mr Murphy said.
The UAE is also facing a surplus of skilled professionals in many roles, particularly at middle and senior management levels, according to recruitment experts. The country’s attractive lifestyle and tax-free salaries continue to draw skilled professionals from around the world.
Hiring in the UAE in the third quarter was robust for roles in senior finance, real estate, investments and public sector to a slightly lesser extent, Mr Murphy said.
The growth in ultra-high-net-worth individuals coming to the UAE is also contributing to the employment market because they're creating jobs.
“A lot of founders are coming to the UAE and setting up business, that's reflecting in the cost of commercial space. Organisations are trying to get office space in Dubai, but setting up in Sharjah instead because they can't find space here,” he added.
Saudi Arabia jobs
Saudi Arabia recorded steady hiring across manufacturing, supply chain and senior finance, with hiring activity growing 1.5 per cent in the third quarter, according to Cooper Fitch.
Hiring is on for big-ticket events like Asian Games, Asian Cup, Expo and World Cup, Mr Murphy said.
“Are they looking for the same volume or skills that was required a year or two years ago? Absolutely not. The ones that are coming out of the ground and have closer end dates will take priority,” he added.
The priority shifted to completing projects and tightening operations, with many companies adding staff only as specific project milestones required it, according to the research.
Once the dust settles, Saudi Arabia should operate at a higher level of job creation in the Gulf because it’s a developing market. Currently, jobs in the kingdom on average pay 5 per cent to 7 per cent more than those in the UAE, according to Mr Murphy.
“It's very important understand how to navigate the local market and gain permissions, particularly in Saudi Arabia. It’s a bit freer in the UAE,” he said.
How other Gulf countries fare
Overall hiring in the Gulf rose by 1.3 per cent in the third quarter following the 1 per cent increase recorded in the second quarter, Cooper Fitch said.
Employers continued to advance strategic initiatives, but most kept tight control over headcount as financial and geopolitical uncertainties persisted. Markets with active project pipelines saw measurable hiring gains, while smaller economies expanded at a steadier pace, the report showed.
High borrowing costs and restricted credit availability continued to weigh on private sector expansion. Further easing in rates, once it materialises, is expected to support stronger hiring activity across the region.
“Overall sentiment among employers in the Gulf remains one of cautious optimism. We're seeing stable market conditions, strong focus on operational efficiencies, and a bit slower project activity across the Gulf,” Mr Murphy said.
Hiring in Qatar remained flat at 0.5 per cent, with upcoming LNG projects yet to translate into meaningful workforce demand, according to the report.
New people are looking at doing anything to get gainful employment. For instance, we've had dentists come to the UAE to work as
real estate agentsTrefor Murphy,
founder and chief executive, Cooper Fitch
Job growth in Oman remained unchanged. There was consistent activity in renewables, industrial and logistics sectors, Cooper Fitch said.
Kuwait recorded a 2 per cent drop in hiring as business growth slowed and employers tightened cost controls. Most hiring was limited to replacement and compliance-driven roles.
In Bahrain, hiring decreased 1 per cent, reflecting softer private sector activity. Financial services and tourism continued to provide employment stability, but limited new capital inflows held back job creation, the Cooper Fitch report said.
Mr Murphy said there was continued growth in hiring activity for roles in real estate, technology, digital, data and AI, cloud, software, public sector and investments in the third quarter across the region.
“There was an 8 per cent growth in jobs in senior finance over the quarter as demand for FP&A [financial planning and analysis] and treasury talent intensified across the Gulf,” he said.
“Strategy and management consulting saw the sharpest decline of 4 per cent in job growth as firms tightened advisory budgets.”
Real estate − up 7 per cent − saw strong hiring in Saudi Arabia and the UAE, led by private sector developers and joint ventures moving major masterplans into design and enabling stages. Roles in development management, project delivery, commercial and technical functions were in high demand, the report said.
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.
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
Fines for littering
In Dubai:
Dh200 for littering or spitting in the Dubai Metro
Dh500 for throwing cigarette butts or chewing gum on the floor, or littering from a vehicle.
Dh1,000 for littering on a beach, spitting in public places, throwing a cigarette butt from a vehicle
In Sharjah and other emirates
Dh500 for littering - including cigarette butts and chewing gum - in public places and beaches in Sharjah
Dh2,000 for littering in Sharjah deserts
Dh500 for littering from a vehicle in Ras Al Khaimah
Dh1,000 for littering from a car in Abu Dhabi
Dh1,000 to Dh100,000 for dumping waste in residential or public areas in Al Ain
Dh10,000 for littering at Ajman's beaches
MATCH INFO
Sheffield United 2 Bournemouth 1
United: Sharp (45 2'), Lundstram (84')
Bournemouth: C Wilson (13')
Man of the Match: Jack O’Connell (Sheffield United)
Indika
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The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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A Bad Moms Christmas
Dir: John Lucas and Scott Moore
Starring: Mila Kunis, Kathryn Hahn, Kristen Bell, Susan Sarandon, Christine Baranski, Cheryl Hines
Two stars
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The view from The National
COMPANY PROFILE
Company name: Blah
Started: 2018
Founder: Aliyah Al Abbar and Hend Al Marri
Based: Dubai
Industry: Technology and talent management
Initial investment: Dh20,000
Investors: Self-funded
Total customers: 40
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
UAE currency: the story behind the money in your pockets
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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.”
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