British Business Group - Abu Dhabi
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Summer is upon us, and the heat has arrived – not just in terms of temperatures, but in terms of Abu habi’s job market as well. Much of the local workforce, at all levels, appears to be coming and going and changing jobs. In over thirty years in Abu Dhabi in the recruitment business, I cannot remember a time when there was so much mobility, or so many people who would move if they had the chance of doing so.

For many people, it’s not simply a matter of choice – it is becoming a necessity, because of inflation, rising rents and a market imbalance that sees some sectors handing out good salary increases, mainly government or government-related, while other employers, primarily in the private sector, are trying to hold the line.

In Abu Dhabi, location, location, location is perfect, but rent, rent, rent is a nightmare.

During a recent recruitment campaign we noticed that many candidates wanting to move to other countries in the Gulf region were people who had only arrived here a couple of years ago. Now, having experienced excessive rent increases and large rises in school fees – even assuming that they can find places in a suitable school – these candidates have decided to look at opportunities elsewhere that have accommodation provided as part of the package or have an adequate housing allowance, on top of a similar salary to the ones they were receiving here.

It’s all very well, with bread-andbutter issues like rents and school fees becoming harder to manage, to dust off the old saying of France’s Queen Marie Antoinette and say: ‘let them eat cake.’ But if the cake isn’t affordable either, people will re-locate to where they can afford to live.

Disturbingly, there are signs that Abu Dhabi could become the cake shop for companies elsewhere who are looking to recruit well-trained staff, with experience in the region, who can easily adapt. This is particularly true in the Oil and Gas industry, though there are others too.

It’s not easy to identify a short-term solution, with inflation being fuelled by the dirham’s peg to the US dollar and with rent increases being driven by the fact that demand is far outstripping supply. It looks as though, in these areas at least, it will be some time before the situation begins to improve – and that means that it is even more important for employers to take good care of their staff, before more of them start looking for greener pastures elsewhere.


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British Business Group - Abu Dhabi, P.O.Box 43635 Abu Dhabi U.A.E T: +9712-4457234 F: +9712-4450605 E: bbgauh@emirates.net.ae
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