Back in January, I shared my outlook on what to expect from the year ahead. Now, halfway through the year, it is time to take stock and think about what is to come for the rest of the year.
While candidate supply remains tight and hybrid working is still the norm, salaries have now stabilised and businesses are trying to work out how they can secure the talent they need to take advantage of a growing market.
Internal hiring creates demand for junior workers
Rather than hiring new talent into the business at the most senior levels, many businesses are promoting from within, building their skills while drawing on their existing knowledge of the business.
Ensuring that existing employees have career progression opportunities is a shrewd move. Given that candidate supply does not currently meet business demand in the UAE, and attracting new talent is difficult. Those who can see a future with their current company are more likely to stay as long as the salary, benefits and culture is in line with their expectations.
While this means that opportunities for senior professionals are limited, the market is booming for junior and mid-level candidates, who can develop their careers whilst taking advantage of everything the UAE has to offer.
Read more: Five reasons to move to Dubai
Packages are adjusted to counter the rising cost of living
While salaries in the UAE are relatively stable, the overall packages on offer are having to change to account for changes in the local economy and rising cost of living.
With fuel prices increasing 74% since January, and rents in Dubai increasing at the fastest rate in eight years, moving to the UAE as an expat is not as appealing as it once was. As a result, businesses are reviewing their offerings so that they can retain their best talent and reviewing their special allowances and supplementary payments to prospective employees.
Despite this, and with rapidly increasing salaries on offer in the UK and Australia, Dubai is losing its competitive edge, and businesses will have to fight harder to attract expat talent.
Businesses reducing family benefits
While businesses are planning to review the allowances on offer to employees, they are also looking for ways to reduce their overheads. For many organisations, that means offering single status benefits rather than family benefits reducing the costs associated with education and healthcare.
Struggling crypto hub frees up supply of developers
The UAE is working hard to make Dubai a go-to hub for technology companies, by using its location to position itself as a convenient global location for the world’s leading economies, highlighting its favourable regulation, and building its reputation by hosting unmissable events like EXPO 2020.
The strategy is working, with many large technology firms, particularly cryptocurrency providers, are choosing to establish headquarters in Dubai. However, with a volatile product, dips in the market can have a significant impact on employment.
When crypto crashed earlier this year, many companies were forced to let many of their most talented and experienced developers go, which means that a comparatively high number of willing and developers looking for new roles.
As other global economies start to show signs of slowing down and inflation continues to grow, it is likely only a matter of time before the UAE starts to feel the burn.
However, with a government focused on growing the population and strengthening the economy, it is likely that they would act to protect progress if needed – and businesses feel safe in the knowledge that they can hire and take advantage of growing opportunities in the market.
While the cost of living is increasing, Dubai remains a fantastic place to work and play, but it is important to make sure you have thought about everything before making a move. Here’s what to consider if you’re thinking about a move to Dubai.
Interested in working with us? Simply reach out to one of our consultants on LinkedIn or contact our offices in Dubai or Abu Dhabi, and we’ll get back to you.