際際滷

際際滷Share a Scribd company logo

Recession And Employment In The Gulf (BAYT.COM & YOUGOV SERVEY REPORT)

Atif Masroor
Atif Masroor

The document summarizes key employment and recruitment trends in the Gulf region since the start of the global financial crisis. It finds that most Gulf countries are expected to see limited economic growth in 2009 due to the recession and falling oil prices. Many companies have responded with job cuts and recruitment freezes, particularly affecting professionals in investment, administration and marketing. Demand has increased for infrastructure and audit professionals. While job losses are slowing, recruitment is expected to remain slow in the short term.

1 of 30
Download to read offline
Recession and Employment in the Gulf July 2009 0
Introduction This research study is intended to provide an overview of key employment and recruitment trends in the Gulf region since the start of the international financial crisis, and to give an indication of how the labour market is likely to evolve going forward. The study is aimed at corporate decision makers, government authorities as well as professionals employed or interested in working in the region. The findings presented in this study are based on a combination of data from GulfTalent.coms recruitment database, interviews with human resource managers, leading economic sources as well as regional press reports. 1
Contents Economic Situation......................................... 3 Impact on Employment ...7 Recruitment Trends11 Compensation Trends... 19 Future Outlook 25 2
Economic Situation 3
Years of massive growth, fueled by high oil prices, have come to a halt Crude Oil Price GCC Economic Growth USD per Barrel 2005 - 2009 6.8% 150 6.2% 5.5% 5.6% 100 50 0.2% 0 2005 2006 2007 2008 2009 2001 2003 2005 2007 2009 Forecast Source: Dow Jones & Company, Economist Intelligence Unit 4
Gulf economies are still expected to perform better than most others, due to high government spending and low exposure to risky assets Global GDP Growth 2009 Forecast China 6.8% India 5.5% GCC* 0.2% ASEAN** -1.9% US -2.9% Eastern Europe -3.6% Latin America -3.7% Western Europe -4.4% Russia -5.0% Japan -7.0% Source: Economist Intelligence Unit * Gulf Cooperation Council, consisting of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE ** Association of South East Asian Nations, consisting of Thailand, Indonesia, Singapore, Malaysia, the Philippines, and five other Asian states 5
Qatar continues to enjoy the highest growth rate in the region, thanks to the on-going development of its huge gas reserves GCC Economic Growth 2009 Forecast 2008 Actual Qatar 9.6% 13.4 % Bahrain 3.1% 6.3 % Oman 1.9% 6.4 % Kuwait -0.7% 8.5 % Saudi Arabia -1.0% 4.2 % UAE -1.8% 7.4 % Source: Economist Intelligence Unit 6
Impact on Employment 7
With demand for talent shrinking, the balance of power has shifted from candidates to employers Emerging Practices Key Observations Cuts visible across the region, with the highest concentration in Dubai Job Cuts Top management among those affected by cuts Longer working hours, partly as a result of staff reductions Increased Mandatory relocation to less popular destinations Work Pressure Sharp cuts in training budgets Majority of firms offering no pay increase Pressure on Pay Some cuts in allowances Many new recruits hired on lower pay than peers Source: Press reports, Interviews 8
A largely expatriate workforce has protected the region from severe domestic unemployment, partly exporting the problem overseas Expatriate Workforce Impact of Gulf Downturn on Other Countries As % of total workforce* UAE 90% Many expatriates returning home following redundancy, adding to unemployment in their countries Qatar 89% Exodus accelerated by government rules allowing expats Kuwait 81% maximum 30 days stay in the country after termination Bahrain 59% Reduced flow of remittances by expatriates Saudi 47% Key countries affected: India, Egypt, Jordan, Philippines Arabia due to their high populations of expatriates in the Gulf Oman 33% Source: Nationalisation Surveys, Press reports * Based on 2006, the latest year for which data available 9
Some Gulf governments have taken action to minimise the impact of corporate redundancies on their nationals Measures to Limit Unemployment of Nationals Country Key Measures Announced UAE Companies that are downsizing advised to start with expats Ban on terminating employment of UAE nationals Significant increase in Kuwaitisation targets for banks Kuwait Pressure on firms receiving government assistance, to hire more Kuwaitis Plan to impose mandatory compensation for Kuwaiti employees being laid off Saudi Arabia Private sector warned against using the crisis as pretext to fire Saudis Companies instructed to start with expatriates first if terminating staff Source: Press reports 10
Recruitment Trends 11
With fewer opportunities and rising concerns about job security, staff turnover has fallen significantly across the region Candidate Perspective Impact on Recruitment Job search has become much more challenging A tendency to hold on to secure jobs, rather than actively searching for better Concern about the risk of last-in first-out in the opportunities except when the event of downsizing employer is believed to be in financial Concern that any sign of disloyalty to existing trouble employer may lead to loss of position Source: Interviews with HR Managers 12
The downturn has reduced recruitment activity by employers, as well as changing the way it is conducted Employer Perspective Impact on Recruitment Headcount growth targets low or negative Volume: Reduced recruitment Lower staff turnover / Higher retention Reduced recruitment budgets Channel: Shift to lower cost recruitment Increased demand for cost transparency channels (e.g. online) Much higher calibre of candidates expected Approach: Shift from public advertising of Concern that active jobseekers may be under- jobs to headhunting / database search in performers expecting imminent redundancy order to discreetly target high-calibre passive Concern that visible hiring activity may complicate candidates internal communication of staff cuts Source: Interviews with HR Managers 13
Dubais share of regional recruitment activity has fallen, while Abu Dhabi, Qatar and Saudi Arabia have seen a relative increase Recruitment Volume by Location % of vacancies advertised on GulfTalent.com * Oman 2% 3% Bahrain 7% 4% 7% Kuwait 10% 13% Qatar 9% Saudi Arabia 15% 20% UAE 14% (excluding Dubai) 23% Dubai 43% 30% 2008 (First Half) 2009 (First Half) Source: GulfTalent.com * Based on 12,000 vacancies advertised by employers and recruitment agencies on GulfTalent.com website over the specified period Note: Internet penetration and prevalence of online recruitment varies across the countries 14
More expatriates are exiting the UAE and Bahrain than last year. However, the desire to leave the UAE remains the lowest in the region Outward Mobility by Country % of expats within the country considering employment in other GCC countries * 92% 84% 74% 74% 75% 75% 78% 68% 66% 55% 2008 (First Half) 2009 (First Half) 26% 16% UAE Saudi Arabia Kuwait Qatar Bahrain Oman Change in Outward Mobility: +10% -13% 0% -9% +3% -8% Source: GulfTalent.com * Job applications submitted for vacancies in other GCC countries, as a percentage of all job applications submitted by expat professionals within the country. Based on a total of 1.4 million job applications submitted on GulfTalent.com over the specified period. The analysis does not take into account mobility to non-GCC countries 15
Across the region, demand for Investment, Administration and Marketing professionals has seen the biggest fall Skills Least in Demand Skill Category Job Titles & Keywords Most Searched Relative Change in No. of Searches 2009 First Half vs. 2008 First Half * Investment Private Equity, Asset Management, Portfolio Manager, Fund Manager -48% Administration Executive Secretary, PA,, Administration Manager, Document Controller -47% Marketing Marketing Director, Branding, Advertising, Media, Communications -46% HR & Recruitment HR Director, HR Manager, Training, Compensation, Recruitment Manager -34% Accounting Accountant, Payroll, Project Accountant, Chartered Accountant, CPA -32% Retail Head of Retail, Retail Manager, Merchandiser, Fashion, Hypermarket -26% Sales Sales Manager, Relationship Manager, Business Development Manager -23% Source: GulfTalent.com * Based on a total of 700,000 online searches conducted by employers and recruiters on GulfTalent.coms CV database during the specified periods 16
Higher government spending in infrastructure projects across the region appears to have increased the demand for related skills Skills Most in Demand Skill Category Job Titles & Keywords Most Searched Relative Change in No. of Searches 2009 First Half vs. 2008 First Half * Infrastructure Airport, Terminal, Highway Design, Bridge Engineer, Urban Planner 142% Audit Auditor, Audit Manager, Head of Internal Audit 25% General Management CEO, Director, General Manager, Operations Manager 20% Source: GulfTalent.com * Based on a total of 700,000 online searches conducted by employers and recruiters on GulfTalent.coms CV database during the specified periods 17
More recruitment activity is being focused on mid-level and senior professionals Recruitment Trends By Seniority Senior Recruitment * Key Trends % of searches targeting 35-50 year age group 25% Increased focus on senior and more experienced candidates 20% Focus on candidates who are perceived to add value from day one Younger candidates requiring longer term investment and 15% training increasingly overlooked 10% Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 Source: GulfTalent.com * Based on a total of 1.1 million CV searches conducted by employers and recruitment agencies on GulfTalent.coms database of candidates over the specified period 18
Compensation Trends 19
Recent appreciation of dollar-pegged regional currencies has increased the value of expatriate salaries US Dollar Appreciation 12-month period to 30 June 2009 British Pound 21% Pakistani Rupee 20% The value of most expatriates Australian Dollar 20% compensation packages has Canadian Dollar 14% increased sharply in terms of their Indian Rupee 13% home currencies, giving them an Euro 12% effective pay rise of 5 to 20 Philippine Peso 8% percent compared to last year Egyptian Pound 5% Source: OANDA 20
Double-digit inflation of recent years has given way to stable or falling prices Cost of Living 2009 Inflation Forecast 2008 Actual Kuwait 7.0% 10.6% Rents: Falling in many cities (e.g. 20-40% fall in Dubai & Doha) Oman 6.8% 12.5% Food: Stable or falling prices, due to UAE 4.5% 20.0% fall in global food commodities (wheat, corn, etc.) Saudi Arabia 2.8% 9.9% Consumer goods: Falling cost of imports, due to strength of currency Bahrain 1.8% 7.0% Qatar -2.8% 15.1% Source: Financial Times, Economist Intelligence Unit, Colliers International, Asteco 21
Rising unemployment across the world is increasing the supply of talent available to employers in the Gulf Unemployment Rate * 2008 - 2009 Canada 8% UK 7% Domestic opportunities available in countries supplying talent to the Gulf 6% becoming fewer and more competitive Australia Growing interest in the Gulf as an 5% alternative destination for work Reduced tendency by expatriates currently 4% in the Gulf to return home 3% Jan 08 Jul 08 Jan 09 Source: Economist Intelligence Unit * Recent unemployment data for other major sources of talent for the Middle East (such as South Africa, India and the Philippines) has not been available 22
Given the market conditions, salaries in the Gulf are expected to remain flat in the near term Low Inflation The cost of living this year is stable, and in some cases falling, particularly in rents Strong Currency Limited Competition for Talent Gulf currencies, which are mostly Slowdown in the regional economy No upward pegged to the US Dollar, have pressure on has reduced demand for staff appreciated sharply, increasing salaries the value of expatriates salaries Rising Unemployment Worldwide Increased unemployment in source countries has made many more professionals interested in working in the Gulf 23
Despite limited pay rises, some expats are seeing their saving potential increase relative to last year Short-Term Financial Impact of Recession on Expatriates Winners Losers Pay Structure : Mostly fixed salary (e.g. Mostly commission / variable pay accounting, administration staff) (e.g. sales staff) Location : Cities with rapidly falling rents Cities with relatively strong real (e.g. Dubai, Doha) estate markets (e.g. Abu Dhabi) Home Currency : Countries with weakening currencies Countries with stable currencies (e.g. UK, Australia, Euro-zone) against US dollar (e.g. South Africa) Net Increase Net Decrease In Saving Potential In Saving Potential 24
Future Outlook 25
While job losses appear to have slowed down, recruitment activity in the short term is likely to remain slow Short-Term Outlook Short-term Trends Stabilised among regional companies Job Cuts More job cuts expected among multi-nationals undergoing restructuring Some job cuts among regional firms undergoing merger and consolidation More regulatory pressure on companies to hire nationals, as more Nationalisation young nationals enter the workforce, with too few jobs to accommodate all of them Pay rises over the next 12 months expected to be minimal Compensation Employees saving potential to remain stable, due to low inflation, but subject to movements in US dollar and pay structure (fixed vs. variable) 26
Economists expect the region to return to healthy growth next year Future Outlook 2010 Economic Growth Forecast Employment activity expected to Qatar 23.5% recover from early 2010 Kuwait 4.4% Recruitment volumes may not UAE 4.2% return to boom levels for some time Oman 3.9% The speed of recovery will depend Bahrain 3.3% largely on global trends, 3.1% particularly the price of crude oil Saudi Arabia Source: Economist Intelligence Unit 27
Summary With the global recession and the fall in oil prices, most Gulf countries are expected to have limited economic growth in 2009. Many companies in the region have responded with staff cuts and recruitment freezes, with professionals in investment, administration and marketing functions most affected. Demand for infrastructure and audit professionals has increased. The UAE, and Dubai in particular, has seen its share of vacancies fall, with some residents seeking opportunities in other Gulf states. However, it still has significant recruitment levels and remains the regions most popular destination. Limited pay increase is expected in the near term, due to falling inflation, reduced demand, rising global unemployment and strength of the US dollar. Economic growth is expected to recover in 2010, with employment activity gaining momentum as a result, but in the long run remaining dependent on the oil price. 28
About GulfTalent.com GulfTalent.com is the Middle Easts leading online recruitment portal, with a database of over 1 million professionals covering all sectors and job categories. It serves as the primary source of both national and expatriate talent to over 2,000 employers and recruitment agencies across the region. Headquartered in Dubai, GulfTalent.com covers the markets of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, Egypt, Lebanon, Jordan and the United Arab Emirates. Further information is available at: www.gulftalent.com Tel: +971 4 367 2084 Disclaimer & Copyright This document should be used for information purposes only. GulfTalent.com makes no claims or warranties regarding the accuracy or completeness of the information provided, and accepts no liability for any use made thereof. The recipient is solely responsible for the use of the information contained herein. 息 GulfTalent.com 2009. All rights reserved. 29

More Related Content

Recession And Employment In The Gulf (BAYT.COM & YOUGOV SERVEY REPORT)

  • 1. Recession and Employment in the Gulf July 2009 0
  • 2. Introduction This research study is intended to provide an overview of key employment and recruitment trends in the Gulf region since the start of the international financial crisis, and to give an indication of how the labour market is likely to evolve going forward. The study is aimed at corporate decision makers, government authorities as well as professionals employed or interested in working in the region. The findings presented in this study are based on a combination of data from GulfTalent.coms recruitment database, interviews with human resource managers, leading economic sources as well as regional press reports. 1
  • 3. Contents Economic Situation......................................... 3 Impact on Employment ...7 Recruitment Trends11 Compensation Trends... 19 Future Outlook 25 2
  • 5. Years of massive growth, fueled by high oil prices, have come to a halt Crude Oil Price GCC Economic Growth USD per Barrel 2005 - 2009 6.8% 150 6.2% 5.5% 5.6% 100 50 0.2% 0 2005 2006 2007 2008 2009 2001 2003 2005 2007 2009 Forecast Source: Dow Jones & Company, Economist Intelligence Unit 4
  • 6. Gulf economies are still expected to perform better than most others, due to high government spending and low exposure to risky assets Global GDP Growth 2009 Forecast China 6.8% India 5.5% GCC* 0.2% ASEAN** -1.9% US -2.9% Eastern Europe -3.6% Latin America -3.7% Western Europe -4.4% Russia -5.0% Japan -7.0% Source: Economist Intelligence Unit * Gulf Cooperation Council, consisting of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE ** Association of South East Asian Nations, consisting of Thailand, Indonesia, Singapore, Malaysia, the Philippines, and five other Asian states 5
  • 7. Qatar continues to enjoy the highest growth rate in the region, thanks to the on-going development of its huge gas reserves GCC Economic Growth 2009 Forecast 2008 Actual Qatar 9.6% 13.4 % Bahrain 3.1% 6.3 % Oman 1.9% 6.4 % Kuwait -0.7% 8.5 % Saudi Arabia -1.0% 4.2 % UAE -1.8% 7.4 % Source: Economist Intelligence Unit 6
  • 9. With demand for talent shrinking, the balance of power has shifted from candidates to employers Emerging Practices Key Observations Cuts visible across the region, with the highest concentration in Dubai Job Cuts Top management among those affected by cuts Longer working hours, partly as a result of staff reductions Increased Mandatory relocation to less popular destinations Work Pressure Sharp cuts in training budgets Majority of firms offering no pay increase Pressure on Pay Some cuts in allowances Many new recruits hired on lower pay than peers Source: Press reports, Interviews 8
  • 10. A largely expatriate workforce has protected the region from severe domestic unemployment, partly exporting the problem overseas Expatriate Workforce Impact of Gulf Downturn on Other Countries As % of total workforce* UAE 90% Many expatriates returning home following redundancy, adding to unemployment in their countries Qatar 89% Exodus accelerated by government rules allowing expats Kuwait 81% maximum 30 days stay in the country after termination Bahrain 59% Reduced flow of remittances by expatriates Saudi 47% Key countries affected: India, Egypt, Jordan, Philippines Arabia due to their high populations of expatriates in the Gulf Oman 33% Source: Nationalisation Surveys, Press reports * Based on 2006, the latest year for which data available 9
  • 11. Some Gulf governments have taken action to minimise the impact of corporate redundancies on their nationals Measures to Limit Unemployment of Nationals Country Key Measures Announced UAE Companies that are downsizing advised to start with expats Ban on terminating employment of UAE nationals Significant increase in Kuwaitisation targets for banks Kuwait Pressure on firms receiving government assistance, to hire more Kuwaitis Plan to impose mandatory compensation for Kuwaiti employees being laid off Saudi Arabia Private sector warned against using the crisis as pretext to fire Saudis Companies instructed to start with expatriates first if terminating staff Source: Press reports 10
  • 13. With fewer opportunities and rising concerns about job security, staff turnover has fallen significantly across the region Candidate Perspective Impact on Recruitment Job search has become much more challenging A tendency to hold on to secure jobs, rather than actively searching for better Concern about the risk of last-in first-out in the opportunities except when the event of downsizing employer is believed to be in financial Concern that any sign of disloyalty to existing trouble employer may lead to loss of position Source: Interviews with HR Managers 12
  • 14. The downturn has reduced recruitment activity by employers, as well as changing the way it is conducted Employer Perspective Impact on Recruitment Headcount growth targets low or negative Volume: Reduced recruitment Lower staff turnover / Higher retention Reduced recruitment budgets Channel: Shift to lower cost recruitment Increased demand for cost transparency channels (e.g. online) Much higher calibre of candidates expected Approach: Shift from public advertising of Concern that active jobseekers may be under- jobs to headhunting / database search in performers expecting imminent redundancy order to discreetly target high-calibre passive Concern that visible hiring activity may complicate candidates internal communication of staff cuts Source: Interviews with HR Managers 13
  • 15. Dubais share of regional recruitment activity has fallen, while Abu Dhabi, Qatar and Saudi Arabia have seen a relative increase Recruitment Volume by Location % of vacancies advertised on GulfTalent.com * Oman 2% 3% Bahrain 7% 4% 7% Kuwait 10% 13% Qatar 9% Saudi Arabia 15% 20% UAE 14% (excluding Dubai) 23% Dubai 43% 30% 2008 (First Half) 2009 (First Half) Source: GulfTalent.com * Based on 12,000 vacancies advertised by employers and recruitment agencies on GulfTalent.com website over the specified period Note: Internet penetration and prevalence of online recruitment varies across the countries 14
  • 16. More expatriates are exiting the UAE and Bahrain than last year. However, the desire to leave the UAE remains the lowest in the region Outward Mobility by Country % of expats within the country considering employment in other GCC countries * 92% 84% 74% 74% 75% 75% 78% 68% 66% 55% 2008 (First Half) 2009 (First Half) 26% 16% UAE Saudi Arabia Kuwait Qatar Bahrain Oman Change in Outward Mobility: +10% -13% 0% -9% +3% -8% Source: GulfTalent.com * Job applications submitted for vacancies in other GCC countries, as a percentage of all job applications submitted by expat professionals within the country. Based on a total of 1.4 million job applications submitted on GulfTalent.com over the specified period. The analysis does not take into account mobility to non-GCC countries 15
  • 17. Across the region, demand for Investment, Administration and Marketing professionals has seen the biggest fall Skills Least in Demand Skill Category Job Titles & Keywords Most Searched Relative Change in No. of Searches 2009 First Half vs. 2008 First Half * Investment Private Equity, Asset Management, Portfolio Manager, Fund Manager -48% Administration Executive Secretary, PA,, Administration Manager, Document Controller -47% Marketing Marketing Director, Branding, Advertising, Media, Communications -46% HR & Recruitment HR Director, HR Manager, Training, Compensation, Recruitment Manager -34% Accounting Accountant, Payroll, Project Accountant, Chartered Accountant, CPA -32% Retail Head of Retail, Retail Manager, Merchandiser, Fashion, Hypermarket -26% Sales Sales Manager, Relationship Manager, Business Development Manager -23% Source: GulfTalent.com * Based on a total of 700,000 online searches conducted by employers and recruiters on GulfTalent.coms CV database during the specified periods 16
  • 18. Higher government spending in infrastructure projects across the region appears to have increased the demand for related skills Skills Most in Demand Skill Category Job Titles & Keywords Most Searched Relative Change in No. of Searches 2009 First Half vs. 2008 First Half * Infrastructure Airport, Terminal, Highway Design, Bridge Engineer, Urban Planner 142% Audit Auditor, Audit Manager, Head of Internal Audit 25% General Management CEO, Director, General Manager, Operations Manager 20% Source: GulfTalent.com * Based on a total of 700,000 online searches conducted by employers and recruiters on GulfTalent.coms CV database during the specified periods 17
  • 19. More recruitment activity is being focused on mid-level and senior professionals Recruitment Trends By Seniority Senior Recruitment * Key Trends % of searches targeting 35-50 year age group 25% Increased focus on senior and more experienced candidates 20% Focus on candidates who are perceived to add value from day one Younger candidates requiring longer term investment and 15% training increasingly overlooked 10% Q1 Q2 Q3 Q4 Q1 Q2 2008 2009 Source: GulfTalent.com * Based on a total of 1.1 million CV searches conducted by employers and recruitment agencies on GulfTalent.coms database of candidates over the specified period 18
  • 21. Recent appreciation of dollar-pegged regional currencies has increased the value of expatriate salaries US Dollar Appreciation 12-month period to 30 June 2009 British Pound 21% Pakistani Rupee 20% The value of most expatriates Australian Dollar 20% compensation packages has Canadian Dollar 14% increased sharply in terms of their Indian Rupee 13% home currencies, giving them an Euro 12% effective pay rise of 5 to 20 Philippine Peso 8% percent compared to last year Egyptian Pound 5% Source: OANDA 20
  • 22. Double-digit inflation of recent years has given way to stable or falling prices Cost of Living 2009 Inflation Forecast 2008 Actual Kuwait 7.0% 10.6% Rents: Falling in many cities (e.g. 20-40% fall in Dubai & Doha) Oman 6.8% 12.5% Food: Stable or falling prices, due to UAE 4.5% 20.0% fall in global food commodities (wheat, corn, etc.) Saudi Arabia 2.8% 9.9% Consumer goods: Falling cost of imports, due to strength of currency Bahrain 1.8% 7.0% Qatar -2.8% 15.1% Source: Financial Times, Economist Intelligence Unit, Colliers International, Asteco 21
  • 23. Rising unemployment across the world is increasing the supply of talent available to employers in the Gulf Unemployment Rate * 2008 - 2009 Canada 8% UK 7% Domestic opportunities available in countries supplying talent to the Gulf 6% becoming fewer and more competitive Australia Growing interest in the Gulf as an 5% alternative destination for work Reduced tendency by expatriates currently 4% in the Gulf to return home 3% Jan 08 Jul 08 Jan 09 Source: Economist Intelligence Unit * Recent unemployment data for other major sources of talent for the Middle East (such as South Africa, India and the Philippines) has not been available 22
  • 24. Given the market conditions, salaries in the Gulf are expected to remain flat in the near term Low Inflation The cost of living this year is stable, and in some cases falling, particularly in rents Strong Currency Limited Competition for Talent Gulf currencies, which are mostly Slowdown in the regional economy No upward pegged to the US Dollar, have pressure on has reduced demand for staff appreciated sharply, increasing salaries the value of expatriates salaries Rising Unemployment Worldwide Increased unemployment in source countries has made many more professionals interested in working in the Gulf 23
  • 25. Despite limited pay rises, some expats are seeing their saving potential increase relative to last year Short-Term Financial Impact of Recession on Expatriates Winners Losers Pay Structure : Mostly fixed salary (e.g. Mostly commission / variable pay accounting, administration staff) (e.g. sales staff) Location : Cities with rapidly falling rents Cities with relatively strong real (e.g. Dubai, Doha) estate markets (e.g. Abu Dhabi) Home Currency : Countries with weakening currencies Countries with stable currencies (e.g. UK, Australia, Euro-zone) against US dollar (e.g. South Africa) Net Increase Net Decrease In Saving Potential In Saving Potential 24
  • 27. While job losses appear to have slowed down, recruitment activity in the short term is likely to remain slow Short-Term Outlook Short-term Trends Stabilised among regional companies Job Cuts More job cuts expected among multi-nationals undergoing restructuring Some job cuts among regional firms undergoing merger and consolidation More regulatory pressure on companies to hire nationals, as more Nationalisation young nationals enter the workforce, with too few jobs to accommodate all of them Pay rises over the next 12 months expected to be minimal Compensation Employees saving potential to remain stable, due to low inflation, but subject to movements in US dollar and pay structure (fixed vs. variable) 26
  • 28. Economists expect the region to return to healthy growth next year Future Outlook 2010 Economic Growth Forecast Employment activity expected to Qatar 23.5% recover from early 2010 Kuwait 4.4% Recruitment volumes may not UAE 4.2% return to boom levels for some time Oman 3.9% The speed of recovery will depend Bahrain 3.3% largely on global trends, 3.1% particularly the price of crude oil Saudi Arabia Source: Economist Intelligence Unit 27
  • 29. Summary With the global recession and the fall in oil prices, most Gulf countries are expected to have limited economic growth in 2009. Many companies in the region have responded with staff cuts and recruitment freezes, with professionals in investment, administration and marketing functions most affected. Demand for infrastructure and audit professionals has increased. The UAE, and Dubai in particular, has seen its share of vacancies fall, with some residents seeking opportunities in other Gulf states. However, it still has significant recruitment levels and remains the regions most popular destination. Limited pay increase is expected in the near term, due to falling inflation, reduced demand, rising global unemployment and strength of the US dollar. Economic growth is expected to recover in 2010, with employment activity gaining momentum as a result, but in the long run remaining dependent on the oil price. 28
  • 30. About GulfTalent.com GulfTalent.com is the Middle Easts leading online recruitment portal, with a database of over 1 million professionals covering all sectors and job categories. It serves as the primary source of both national and expatriate talent to over 2,000 employers and recruitment agencies across the region. Headquartered in Dubai, GulfTalent.com covers the markets of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, Egypt, Lebanon, Jordan and the United Arab Emirates. Further information is available at: www.gulftalent.com Tel: +971 4 367 2084 Disclaimer & Copyright This document should be used for information purposes only. GulfTalent.com makes no claims or warranties regarding the accuracy or completeness of the information provided, and accepts no liability for any use made thereof. The recipient is solely responsible for the use of the information contained herein. 息 GulfTalent.com 2009. All rights reserved. 29