Although 63% of UAE companies intend to expand their workforce over the next year, a study indicates that some may postpone or halt new hires. Recruitment firm Robert Half highlighted that the global economic climate, marked by upcoming elections and fluctuating inflation, poses a major challenge to UAE businesses, prompting delays in recruitment. The survey involved 100 senior UAE business leaders, of whom 33% are holding off on hiring decisions until election outcomes, especially in the US and UK, are clear. Additionally, 32% are awaiting stable interest rates. Due to these global pressures leading to increased costs in the UAE, 29% of executives have implemented a hiring freeze. Many UAE firms, operating regionally and globally, are adjusting their strategies to address these challenges. Gareth El Mettouri, Robert Half's Middle East director, noted that despite the UAE's economic growth and potential for business expansion, global uncertainties are affecting hiring plans. He emphasized that as a global hub, regional businesses are significantly influenced by international parliamentary elections. The study also predicts a surge in hiring for skilled talent towards the end of 2024 and into 2025, as 37% of firms anticipate a shortage of technical skills. El Mettouri warns of a highly competitive market once hiring restrictions ease, especially with stagnant salaries fueling a desire for change. The survey further revealed that 67% of UAE business leaders are very confident about their growth prospects for the rest of 2024 and into 2025, driven by increased demand, expanding opportunities, and an improved economic situation.
Text: Lara Palmer
13.06.2024
Study Shows Delays and Freezes in Recruitment Due to Economic and Political Factors