A recent survey by recruitment consultancy Robert Half reveals that over 60% of UAE business leaders anticipate increasing their employee headcount in the next 12 months. However, the global economic landscape, including upcoming elections and inflation instability, poses significant challenges for 39% of organizations, leading many to delay hiring activities.
The survey, which included responses from 100 senior business decision-makers in the UAE, shows that some companies have implemented hiring freezes. These organizations are waiting for the results of elections in the UK and the US, as well as for interest rates to stabilize before resuming recruitment. These global issues are contributing to rising costs within the UAE.
Despite the uncertainties, 67% of UAE business leaders are confident about their companies’ growth prospects through the remainder of 2024 and into 2025. This optimism is driven by increased demand for products and services (66%), expanding business opportunities (58%), and an improved economic environment (50%).
Gareth El Mettouri, Director for the Middle East at Robert Half, stated in a Gulf News report, “Despite the UAE economy booming and businesses seeing opportunities for growth in the year ahead, global uncertainty is impacting hiring intentions.”
He added, “As a global hub, many businesses in the region could be hugely impacted by parliamentary elections around the world, and while high inflation and unstable interest rates persist, many businesses are playing it safe and putting off important decisions.”
The survey further indicates that 33% of business leaders are postponing hiring decisions until after the US and UK elections, while 32% are waiting for interest rates to stabilize. These delays, driven by global factors, have led 29% of organizations to impose hiring freezes, potentially leaving them without the necessary talent to achieve their growth potential.
Moreover, nearly 37% of business leaders expect the availability of technical skills to be a significant challenge in the next 12 months. Robert Half’s report recommends that organizations focus on retaining their talented workers. However, a third of the organizations do not plan to offer salary increases, and 30% expect to forego bonuses this year, which might lead to employee turnover.
“Most business leaders still expect to see overall headcount increase over the next 12 months despite hiring freezes and delays,” El Mettouri noted. “But this could be setting up for a highly competitive market once the brakes are off at the end of the year and moving into 2025, especially with stagnant salaries creating an appetite for change.”