As Mark Twain reportedly once said: ‘rumours of my death are greatly exaggerated’. Digby Morgan’s Middle East team report from a cautiously optimistic Dubai

After a tough year for all concerned in 2009, Dubai has entered the new decade determined to prove its critics wrong. The opening of the world's tallest tower, the Burj Khalifa, has been seen by many as Dubai answering its many critics who claimed that its days were numbered. A last-minute name change was a not-so-subtle nod to its neighbour, Abu Dhabi, who has helped to bail out Dubai and yet another sign that UAE cooperation is as strong as ever. Add to this the steadily rising oil prices, the increase in stock markets and the resuming of inter-bank lending and the stage is set for a comeback.

However, there is no doubting that the slowdown of last year fundamentally altered the dynamics of the labour market. An increase in nationalisation targets, combined with a preference for expatriate candidates with Middle East experience, meant that the flow of top talent from other parts of the world into the GCC (Gulf Cooperation Council) slowed dramatically. In addition, it is estimated that one in ten people in the Gulf were made redundant during last year which, due to the visa laws, has meant that there was an outflow of candidates from the region.

Yet the end result of all of this is that the talent pool, while smaller, is now in many ways of a higher calibre than before. Firms used the downturn and subsequent restructuring to retain or recruit top talent, meaning that the overall level of their HR offering has risen. This has had an effect on the way the recruitment model works, as for the first time firms looking to recruit have had to change their strategy: the retained search or ‘headhunt’ approach is now much more prevalent as good candidates are frequently already employed. Similarly, there is a drift towards using specialist recruitment firms who have a deep understanding of their area of expertise and are immediately able to identify the best person for a role, wherever they may be.

Looking forward into 2010, it is estimated that hiring levels will certainly continue to pick up as firms who survived last year look to increase their market share at the expense of their less fortunate competitors. Financial services, telecommunications, healthcare and the oil and energy sectors are among the industries showing strong signs of confidence. From a candidate perspective, there are some strong UAE nationals in the market with more coming through all the time through the Emirates National Development Programme, but there is still a need for mid-level and senior-level expats who have a thorough understanding of a multi-cultural, matrixed, international environment and who understand the idiosyncrasies of the Middle East market. Furthermore, with Abu Dhabi, Qatar and Saudi Arabia all exhibiting ambitious growth plans, the Middle East is now no longer just a synonym for Dubai and opportunities are starting to appear across the whole region.


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