The United Arab Emirates (UAE) is renowned for its economy range of industries and abundant job opportunities. With its business environment, the UAE appeals to professionals in search of well-paying careers.
The banking sector in the UAE is cautiously optimistic about the outlook for 2024, buoyed by several favourable factors. Stable interest rates, declining bad loans, and a robust GDP are expected to contribute to the sector's growth following a year of increasing profitability and higher return ratios in 2023.
The presence of major players like First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al Khaimah, and Sharjah Islamic Bank underscores the strength and diversity of the UAE's banking sector.
These leading banks play a pivotal role in driving economic growth and financial stability in the UAE. Their resilience and adaptability to changing market conditions position them well to capitalize on emerging opportunities and navigate potential challenges in the year ahead.
Overall, with a solid foundation and favourable macroeconomic indicators, the UAE's banking sector is poised for continued growth and stability in 2024, contributing to the overall prosperity of the country's economy.
In terms of geographical distribution, most companies, accounting for 52%, originate from the MEASA (Middle East, Africa, Southern Asia) region. This underscores the significant presence and contribution of businesses from this diverse and dynamic region.
Additionally, 15% of companies hail from the UK, reflecting the country's strong reputation as a global financial centre and hub for business activity.
11% of the companies originate from the US, highlighting the continued influence and participation of American firms in the global marketplace.
10% of the companies are from Europe, indicating the region's importance as a key player in the global business landscape.
The remaining 12% of companies come from other countries, demonstrating the global diversity of participants in the market.
Notably, new entrants include several global powerhouses such as Alliance Bernstein, Brevan Howard, Edmond de Rothschild, Farro Capital, Hudson Bay Capital, Nomura Singapore, The Family Office Company, and many others. These companies bring significant expertise, resources, and perspectives to the market, further enriching its diversity and vibrancy.
As DIFC continues its journey of success, its accelerated growth trajectory is perfectly aligned with the goals of the Dubai Economy Agenda to double the size of Dubai’s economy over the next decade and reinforce its status as one of the world’s top three cities for business and investment. DIFC is focused on expanding and deepening its pool of financial services firms and growth-stage innovation businesses.
The removal of the UAE from the FATF (Financial Action Task Force) grey list on February 23rd, 2024, carries significant implications for businesses operating in the region:
Being removed from the FATF grey list signifies that the UAE has addressed deficiencies in its antimony laundering and counter-terrorist financing frameworks. This enhances the country’s reputation as a transparent and compliant jurisdiction, which can positively impact investor confidence and business perceptions. Furthermore, the UAE is likely to face fewer restrictions and scrutiny from international financial institutions.
This is undoubtedly a significant milestone and one that is a just reward for the rigorous efforts and comprehensive reforms the UAE has made towards aligning its anti-money laundering (AML) and counter-terrorism financing (CTF) frameworks with international standards. The UAE's efforts have been substantial, including legislative reforms, strengthening of financial oversight mechanisms, and increased international cooperation.
As the UAE now heralds its departure from the FATF grey list, a significant shift in the operational landscape awaits businesses and investors within the nation.
Looking forward, the UAE’s focus will likely extend beyond celebrating this achievement to ensuring the sustainability of the reforms that facilitated this milestone. The global financial landscape is ever-evolving and will no doubt allow the UAE and key hubs such as Dubai and Abu Dhabi to further grow their presence as the Middle East’s key financial hubs. This new chapter promises a more conducive environment for growth, innovation, and international collaboration and the ability to enter new markets and forge global partnerships with less friction and greater confidence.
The rivalry between Saudi Arabia and the UAE in the battle for economic power is indeed intensifying, with Saudi Arabia's Vision 2030 initiative aiming to position the kingdom as a leading economic powerhouse in the Middle East. However, whether Saudi Arabia poses an immediate threat to the UAE economy is a matter of debate.
As of now, the UAE remains a dominant force in the region's economy, with its established infrastructure, diverse business landscape, and strategic location contributing to its attractiveness as a global business hub. The UAE has built a reputation for innovation, entrepreneurship, and openness to foreign investment, which has propelled its economic growth and prosperity.
However, Saudi Arabia's ambitious Vision 2030 agenda, aimed at diversifying its economy away from oil dependency and transforming key sectors such as tourism, technology, and finance, poses a long-term challenge to the UAE's economic dominance. Projects like "The Line," which aims to create a futuristic and sustainable city, represent Saudi Arabia's aspirations to attract investment and talent on a global scale.
Whether Saudi Arabia can successfully execute its Vision 2030 initiatives and compete with the UAE as a leading economic hub remains to be seen. Factors such as geopolitical stability, regulatory reforms, infrastructure development, and investor confidence will play crucial roles in determining the success of Saudi Arabia's economic ambitions.
On an economic front, the UAE has had a huge head start with Dubai, which has consistently been a destination for young Saudis and others seeking jobs not available at home, as well as foreign direct investment from global businesses looking for a gateway to the Middle East. There is no doubt about it, that advantage is now threatened by Vision 2030 — the crown prince's radical transformation plan to future-proof Saudi Arabia's economy by reducing its dependence on oil. Its scope is enormous.
Along with giga projects such as The Line, a 100-mile-long glass structure on the cusp of the Red Sea envisioned as a car-free, futuristic city for 9 million people — Vision 2030 is targeting entertainment, hospitality, and travel as growth areas for the country. This naturally means growth in Banking, Financial Services, and further non-financial services sectors too as the KAFD continues growing with new investments being introduced rapidly.
In my opinion, whilst KSA is rapidly growing however the UAE remains and is ahead of KSA in terms of culture, and environment and is the prominent choice for many global expats. That said, it will still be some time before we see any big changes to this, though from a hiring perspective, there is a significant uplift in salaries for those willing to invest and work in KSA. Watch this space.
Saudi Arabia is also upping the ante and the absolute stipulations that any foreign companies operating in the country must have a presence via regional headquarters in Riyadh. Several firms seem to be operating in KSA from the UAE which is not helping the economy as rapidly as it would if these firms have a base in Saudi Arabia.
Back to the UAE, recruitment is on the rise in the banking and finance sector. Supported by a robust regulatory framework and a diverse range of financial institutions, the UAE has consistently demonstrated resilience and adaptability in the global financial landscape, navigating through economic cycles and emerging stronger. “The UAE is at the forefront of adopting financial technologies, embracing digital transformation to enhance customer experience and operational efficiency. It is emerging as a global fintech hub, attracting start-ups and established players to develop innovative financial solutions.
Needless to say, the vibrant sector is seeing a strong demand for skilled professionals including financial and risk analysts, investment bankers, compliance officers, data scientists and fintech experts.
The UAE economy has grown rapidly in recent years, creating a high demand for skilled professionals across various industries. This has led to increased competition for talent, particularly in specialised areas. There is also a mismatch between the skills of the available workforce and the requirements of the growing economy.”
The rapid pace of technological advancements and the evolving nature of industries have created a skills gap in the market. Companies are seeking candidates with specialised skills and knowledge, but such candidates are often in short supply. The quality and diversity of the candidate pool also pose challenges for recruiters.
Hiring is expected to increase by at least 15% this year driven by an optimistic market outlook, according to head-hunters and HR professionals in the UAE. They highlight that the recruitment landscape in the country is witnessing transformative shifts, spurred by technological advancements, socio-economic changes, and a growing emphasis on fostering a diverse and inclusive workforce. It’s also worth noting that there is a significant increase in expatriates arriving, likely surpassing previous numbers, due to the declining economies of certain countries, according to experts.
The job market and hiring saw an increase of approximately 25% from the previous year and this year (2024) we will likely see a 25-30 % increase again, based on signs the key sectors will continue to thrive and the economy becoming even stronger.
We are seeing a real boom in certain areas, particularly in IT, banking, and HR. The tech sector is especially buzzing, with a strong focus on areas like AI and cybersecurity – it’s quite the hotspot for innovation right now.”
The growth is attributed to the UAE’s focus on expanding and diversifying its sectors with a huge focus on technological advancements due to the government's huge investment in futuristic projects. UAE has successfully diversified its economy, moving away from purely relying on oil revenue. This shift reflects positively on everyone.
So, what are you waiting for? make the move to the UAE now and settle in for an unbelievable ride which will no doubt be a memorable one. There is a lot to weigh, but UAE remains a multicultural society with big plans to grow its financial district in the next 5 years and that itself is a massive attraction for many.
If interested in a move to the UAE or across the Middle East, please get in touch with us at ETRA Talent for a confidential conversation.