With the jobless rate in the United States holding steady at 9.1 percent and the market showing no signs of near-term recovery, many Americans are considering looking abroad to combat their unemployment problem at home.
The Middle East could be the newest hotspot for jobs, according to a new report entitled "Going Global Employment Outlook: United Arab Emirates," by Mary Anne Thompson, founder and president of Going Global.
Thompson's thesis states that "despite the continuing volatility in the region, the UAE, with almost no corporate taxes, no income taxes and a relatively low import duty of 5 percent, remains a favorite of multinational companies, expats and would-be expats. As its economic recovery from the global recession gains strength and its stability remains intact, business confidence in the UAE is slowly improving, which should help accelerate economic activity and with it, employment."
As expats search for jobs abroad, and specifically in the UAE, the questions are where are the high growth sectors, and are the opportunities diverse enough in the UAE to attract expats. Traditionally, job seekers have thought that only oil- and energy-related positions present growth there, but that assumption might not necessarily be accurate.
"UAE experts predict oil and gas production will remain the backbone of the UAE economy for years to come. While this is true, the non-oil sector of the economy is expanding rapidly. Major growth areas include aircraft and parts, security and safety equipment; IT equipment and services; medical equipment, services and supplies; architecture, construction and engineering services; building products; air conditioning and refrigeration equipment; and environmental and pollution control equipment. Because of the UAE’s increasing demand for water and electricity, water and power projects continue to offer opportunities for growth."
"Nearly 60 percent of businesses in the UAE are looking to hire at managerial and professional levels, up from 46 percent in the first quarter of the year, according to a survey from Antal, an international recruitment company with an office in Dubai. Sixty-eight percent of companies also expect to hire staff for various middle and senior-level positions in the near future," Thompson explained.
The prospects sound promising, but an important consideration is the local landscape and competition in the UAE. If jobs are abundant, skeptics may ask, then why does the UAE have an estimated 12 percent unemployment rate—one that's believed to be even higher among its youth? With a large number of Emirati university graduates flooding the market, why may expats be sought to fill the available positions over local candidates? The answer to those questions comes down to skills and training, something that the UAE and the rest of the Middle East struggle with.
In her report, Thompson says, "a recent Middle East Job Index Survey conducted by Bayt.com and YouGov Siraj found those with a degree in business or engineering-related fields have an edge over other job seekers in the region. Twenty-seven percent of employers in the UAE are looking to fill positions with graduates and postgraduates in business management, and 26 percent would like to see engineering graduates and postgraduates join their organization. The survey found that commerce degree holders are also in demand, with 22 percent of companies seeking them to fill positions."
Meanwhile, many expats never consider seeking job opportunities abroad because they don't possess local language skills. But Thompson says that non-Arabic speakers shouldn't assume that language skills will be their Achilles heel.
"While the job index indicates that graduates with certain degrees and Arabic-English speaking skills are in high demand, job seekers who don't meet the criteria should not be discouraged. Industry experts said getting the right person for the job is crucial, so employers always look beyond formal qualifications when recruiting a new member of the team. Experience and professional achievements count for a lot when seeking the right employee."
And of course there is the question of salaries; are paychecks in the Middle East competitive by Western standards?
"Salaries in the UAE are high, and they are tax free. GulfTalent predicts UAE salaries will increase 6.3 percent this year...CEOs’ salaries in the UAE are not increasing these days, and the lack of salary hikes may be causing a shortage of candidates," Thompson said.