While the majority of UAE companies (63 per cent) are still planning to increase their headcount in the next 12 months, some will delay hiring or even freeze new recruitment, according to a study released on Thursday.
Recruitment consultancy Robert Half said the global economic picture — with multiple elections scheduled and unstable inflation — is one of the most significant challenges for UAE business performance and is causing many to delay hiring activity.
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The survey was conducted among 100 senior business decision-makers in the UAE.
One-third — 33 per cent — of UAE business leaders said they were waiting to make hiring decisions until the outcome of elections, particularly those in the US and the UK, are known. Some 32 per cent agree and are waiting for interest rates to stabilise.
These global issues, which are resulting in rising costs in the UAE, have driven one in three – 29 per cent – of UAE executives to say that their organisation has introduced a hiring freeze, according to the report.
Tackling uncertainty
Many UAE firms run regional and global operations, so executives are inclined to rethink and rejig their policies to tackle challenges arising from global issues.
Gareth El Mettouri, director for the Middle East at Robert Half, said that despite the UAE economy booming and businesses seeing opportunities for growth in the year ahead, global uncertainty is impacting hiring intentions.
“As a global hub, many businesses in the region could be hugely impacted by the parliamentary elections taking place around the world. While high inflation and unstable interest rates persist, many businesses are playing it safe and putting off important decisions,” he added.
Rush for hiring in late 2024
The study noted that 37 per cent of firms were expecting the availability of technical skills to be a significant challenge over the next 12 months, so organisations should make sure that they are doing what they can to hold onto talented workers.
However, these hiring delays and freezes due to global instability could result in a rush for skilled talent in late 2024 and into 2025.
“Most business leaders still expect to see overall headcount increase over the next 12 months despite hiring freezes and delays — 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,” said El Mettouri.
Strong growth prospects
Robert Half’s latest survey revealed that two-thirds – 67 per cent – of UAE business leaders feel “very confident” about their organisation’s growth prospects for the remainder of 2024 and into 2025.
It was found that the confidence is being driven by increased demand for products and services, expanding business opportunities and a better economic situation.