Kuwait’s income reached record highs of $96.8bn at the close of February, a massive increase over the yearly expectations of $48.4bn, based on data posted by the finance ministry.

The 44.1 percent revenue surge over the past year has resulted from rising oil prices and a marked output increase, moving from 2.3mn barrels per day (or bpd) last year to 3.0mn bpd.

Oil revenues represent 95 percent of government income and hit $91.7bn during the opening 11 months of this year, representing a 45.8 percent increase from last year.

Budgeted oil revenues were calculated using a conservative $60 per barrel price. Actual results saw the average oil price reach $109 per barrel over the last 11 months.

Spending over that period amounted to nearly half of the budgeted amount. Ministry figures reported $38.9 billion in expenditures over the 11-month period, significantly lower than the budgeted amount of $70 billion.

These figures result in a $57.9 billion provisional budgeted surplus, twice the amount of last year’s surplus. Kuwait has posted a surplus for thirteen straight years, accumulating over $200 billion in surplus funds over the last twelve years.

The current figures are record high for Kuwait, both in terms of budget surplus and actual revenue.

The record high income of Kuwait previously sat at $79 billion, earned during the 2010-11 fiscal year. The highest budget surplus for the Gulf state was recorded in 2007-08 at $33.5 billion.

Recent forecasts from the National Bank of Kuwait indicate that actual budgeted figures at the close of this fiscal year will drop to about $43 billion as a result of year-end accounting adjustments.

Kuwaiti law dictates that ten percent of the yearly government income be moved into Kuwait’s sovereign wealth fund. The budget does not include any returns for that fund.

UAE Job Market Expanded in 2011 and Set For Further Growth

The expansion seen in the UAE job market last year is expected to continue throughout 2012 as many firms in the Emirates plan to hire more staff, according to executive recruiters at the Gulf Recruitment Group.

A report released by the firm stated that both multinational and local businesses are confident of surging activity this year, causing an increase in hiring in the UAE and across the region.

According to the Gulf Recruitment Group report, 93 percent of businesses surveyed have plans to hire during the opening quarter of 2012, but will move forward with caution.

The Gulf Recruitment Group director Mark Timms noted that companies expect to hire at the same rate seen in 2011, with brighter prospects reported by firms in FMCGs (or Fast Moving Consumer Goods), pharmaceuticals and construction. As the investment banking sector struggles, employment within retail and corporate banking will see more challenges. Timms also stated that career seekers looking at the insurance industry should see positive conditions.

The receiving and placement of live mandates increased by 46 percent last year compared to 2010 figures. The report expects this to significantly improve this year.

Higher demand should hit the construction sector during Q1 and Q2 of 2012, with the reported 17 percent of companies surveyed implementing the manpower plans currently in place.

The report stated that the economy in the UAE is surging across a variety of sectors as large regional projects get underway. The staffing required for these projects is being pulled from the Emirates.

The job market in the UAE recovered last year after local growth and economic improvement came into play, according to Stanton Chase Marketing and Operations director Konstantina Sakelloriou. Sakelloriou noted that several global events also had an effect on the UAE job market.

Troubles in the US and European economies affected the banking sector, where notable layoffs were experienced. Sakelloriou stated that the UAE has experienced a period of slowing down, as opposed to a period of layoffs.

Huxley Associates Middle Eastern business manager Hasnain Qazi stated that UAE-based investment banking firms cut costs and laid off staff last year in response to American unemployment, negative performances in the stock market, crisis in the Eurozone and worldwide economic slowdowns.

Certain brokerage firms closed their doors or significantly cut operations, while a notable number of brokers were laid off.

The Arab Spring played a vital role in shaping the UAE job market, according to experts.
Beginning in Tunisia and Egypt, moving to Libya and Syria and including the sanctions against Iran, the Arab Spring pushed businesses away from tumultuous regions and into the UAE, where stability created a safe haven, according to National Bank of Abu Dhabi’s chief financial analyst Ziyad Dabbas.

Dabbas noted that the UAE has seen the benefits of these movements, creating new economic opportunities.

Sakellariou stated that executives moved from regions in crisis to the UAE as a result of the Arab Spring, with many transferring property into the UAE from the affected nations.

A pay hike of higher than 30 percent for UAE government employees has put pressure on UAE businesses, likely resulting in higher salaries within the private sector.

Saudi Forecasted to Experience 3.8 Percent Growth in 2012

Forecasts for Saudi Arabia’s GDP state a 3.8 percent growth in 2012, according to leading regional bank, Emirates NBD. Supported by spending with the public sector, the Saudi economy will grow despite downturns in the worldwide economy. Oil remains the largest revenue source for Saudi Arabia, and oil prices are expected to stay above $100/barrel.

Emirates NBD’s chief investment officer in Private Banking Gary Dugan stated that the view of the Kingdom’s market remains positive overall. Population demographics are expected to affect the economic in a positive way, boosting the telecoms industry particularly. The banking sector in Saudi will also realize the benefits since banking balance sheets in Saudi are mainly driven by domestic markets.

Considering equities in Saudi Arabia, banking, telecoms and petrochemicals should create the largest impact on the market’s performance, due to these sectors dominating the Tadawul. Food and retail will also see an advantage from increasing government spending and consolidation with specific industry segments.

When or if foreign ownership in equities is adopted, this move is expected to create a major boost in regional markets, according to Dugan. The Tadawul remains the biggest stock market in the area, and could become a catalyst for investors looking to get into other markets within the region.

Dugan also stated that in most of the emerging market nations, Russia and China being the exception, demographics are expected to create strong growth in the coming years. Although challenges exist around the globe, Dugan believes that emerging markets will continue to experience growth.

As the vibrant, youthful population continues to surge in the Middle East, those demographics will support solid growth in the economy, according to Dugan, despite a recession and continuing struggles in the Eurozone.

Dugan outlined the various global economic challenges ahead, noting that structural change continues to occur around the world. Several major issues face investors, with a wide range of possible outcomes to consider. Investors will deal with questions regarding the deficit spending cuts in the US, the Eurozone problems, low interest on Japanese debt payments and a dreary long-term outlook on the overall economy. Also, the Arab Spring could continue through 2012 and impact markets in the GCC.

Instead of second-guessing about the Eurozone, Dugan noted that investors should look to what they know is true, and consider industries and regions with expectations for solid structural growth. Dugan advised that investors watch pharmaceuticals, technology firms and energy, where long-term opportunities abound.
Paul Holdsworth, Staff Writer, Gulf Jobs Market News

The UAE’s purchasing managers’ index (PMI), a composite indicator of the performance of the non-oil private sector, increased from 51.7 in December to 52.4 in January.

The index, compiled by HSBC Holdings and Markit Economics, signalled stronger private sector growth in the UAE,
Registering above the 50 mark that separates growth from contraction, the latest reading was in line with the average recorded during the second half of last year.

“The headline number points to greater stability after a run of declines and it’s encouraging to see the uptick in new orders,” said Simon Williams, chief economist for Middle East and North Africa at HSBC.

Business conditions in the UAE’s non-oil private sector improved at an accelerated rate in January, following a slight weakening at the end of 2011. The strengthening in the health of the sector was moderate, as the expansion in output quickened and new business rose at a marked pace. Hiring remained sluggish, however, as firms remained cautious of adding to cost pressures. Non-oil producing firms recorded a significant rise in overall new orders at the start of 2012. The rate of growth in total new business accelerated over the survey period to a three-month high.

Activity

An expansion in new export orders was also registered in January. The increase was slower than for overall new business, however, as survey members reported that purchasing by European customers remained subdued.

In response to the rise in new work, firms increased activity in January. Output growth by the UAE’s non-oil producing companies accelerated to a solid rate, the second-quickest recorded in the last six months. Efficient order processing and quicker delivery times from suppliers helped to reduce outstanding business held by companies over the month. Vendor performance improved considerably, with lead times shortening at their second-sharpest rate in 21 months.

Stock rise

“Greater production requirements encouraged businesses to increase purchasing activity in January. The expansion in input buying was solid, and quickened to the fastest pace since July 2011.

“However, greater purchasing activity did not translate into a rise in pre-production stocks,” HSBC said.

The survey showed non-oil producing companies in the UAE increased headcounts at only a marginal rate in January. Most firms appeared reluctant to increase staff levels as cost pressures remained strong.

“Employment still looks soft, though, and continued weak output prices despite further gains in costs suggests there continues to be significant spare capacity in the domestic economy,” said Williams.

This year was one of upheaval for the Middle East as a whole, yet one of relative inaction in the financial services recruitment sector as most firms remained cautious because of regional concerns and escalating problems elsewhere in the world.

Comparatively speaking, the Middle East financial sector has remained resilient in the wake of turmoil in Europe and widespread redundancies in most Western markets, but will it remain so in 2012? And what sectors, job roles or skill sets will still be in demand next year?
We’ve spoken to some key financial services recruiters in the Middle East about their expectations for the coming 12 months.

2012 could be a good year for :

Wealth management/private banking
This is an obvious inclusion, considering the proliferation of wealth management roles in both international and regional institutions this year, but (as we mentioned previously) this recruitment looks set to continue into 2012.
“Competition is tough for private bankers and wealth management professionals in the Middle East, but it’s an easy hire for most firms to justify,” says Peter Greaves, executive vice president at headhunters DHR International. “If someone can bring a decent percentage of their client book across with them, they’re covering their own costs.”

Islamic finance
With the finance sector’s industry generally tarnished in Western markets (as the Occupy Wall Street and Occupy LSX movements in the US and UK demonstrate) many are viewing this as an opportunity for Islamic banks to emphasise their moral standpoint – the sector’s dislike of excessive financial leverage and equitable distribution of wealth, for example.

From a retail banking point of view, this could mean more deposits flow into Islamic institutions.
There’s also a buzz about the Middle East sukuk market, specifically a large riyal-denominated Islamic bond from Saudi Arabia, which could emerge as early as Q1 2012. The Saudi Arabian Monetary Agency is believed to be in discussions with a number of local and international banks over the issuance. Yields have dropped and issuance levels have picked up in the GCC sukuk market, and it’s expected to continue to do so next year.

“The creation of a number of new Islamic windows in international banks in the region, as well as an increase in the popularity of Shariah compliant products and services, is leading to an rise in profits within the Islamic banking sector,” says James Collin, business manager at Reed Banking UAE.

Localisation initiatives
Banks in places like the UAE and Qatar, where the local population is small, have been increasingly successful in ensuring that more nationals enter the private sector. Most firms are hitting the 40% market in terms of local headcount, which is achieved by taking on swathes of graduates throughout the year. The challenge, however, is making sure the new recruits stick around.

“Localisation has always been high on the agenda of any financial institution in the Gulf licensed by the central bank, but next year there’s going to be a greater focus on training and development to ensure better retention levels,” says Barbara Van Meir, managing director, head of MENA at search firm Pemberton Partners. “Those nationals in mid and senior positions are also likely to be even more sought after next year.”

Transaction banking
Corporate banking has been doing rather well in the Gulf of late. As a recent survey from the Boston Consulting Group concluded, provisions for underperforming loans have been declining since their peak in 2009, and as a result corporate banking profitability has increased this year, even while revenues remained flat.

Nonetheless, new lending is still subdued as banks continue to be cautious about over-extending themselves again. In contrast, it’s the non-glamorous areas of corporate banking – transaction banking, trade finance, cash management, which are expected to grow even further next year and recruitment is increasing.

“The financing of exports forms an essential contribution to helping the region’s economies diversify away from oil. In addition, banks see these business areas as offering a steady flow of business compared to other areas,” says Richard Lett, regional director – Middle East, at Hudson.

Market risk roles
Risk has been a fertile area of recruitment in the GCC financial sector for some time now, as banks in the region look to increase their standard of governance. Next year, however, it seems that market risk roles in particular could be in demand. “A lot of regional banks are looking at new products, which may be relatively common in developed markets, but are still new to this part of the world,” says Van Meir. “They need new skill-sets to ensure the risk involved is understood and therefore we would anticipate market risk in particular being an active area of recruitment next year.”

And 2012 could be a bad year for :

Broking and equity research
If you wanted some (more) evidence of how trading activity on the regional capital markets has remained in the doldrums this year, take a look at the latest figures from Nasdaq Dubai. The value of shares traded on the bourse declined by over 60% year-on-year in November, with just $36m worth of shares traded throughout the month.
Across the GCC the value of stocks traded has continued to tumble – turnover was $296bn last year, compared to a high of $1,600bn in 2006. There have been some high profile exits from the retail brokerage sector; notably HSBC and Rasmala, but generally the sector is shrinking. There are now just 60 operational brokerages in the UAE, down from 110 last year.

“The feeling is that with trading volumes so low, more brokerages will close in the region next year and there’s less of a need for equity research, which suggests more firms will downsize in this area as well,” says Van Meir.
Nomura has closed its regional equity research function, while Credit Suisse, Deutsche Bank and UBS have all reduced headcount in this division.

Investment banking
It’s no secret that 2011 has been a terrible year for investment banking deal activity, with M&A, DCM and ECM activity all declining on 2010 (which in itself was a poor 12 months).

Whether it picks up next year is still open to debate. A recent survey by IntraLinks in conjunction with mergermarket, suggested that investment bankers in Europe, the Middle East and Africa were the most pessimistic about M&A deal activity picking up next year, and few people are predicting much in the way of IPO activity in the first part of 2012.
Despite this, there are some positive signs; RBS, for instance, is expecting to close four deals worth $2bn next year and is upbeat about prospects for M&A in the region.

If deal activity does pick up next year, international investment banks – most of which are running a skeleton crew – may be required to staff up. There’s little sign of this yet, however.

“Many of the international banks in the region are transferring (or shrinking) their investment banking teams,” says Lett. “While there may be some demand for strong investment banking coverage bankers, those on the execution side may find 2012 a little tough to secure like for like roles with competitor banks.”

Back office roles
Most banks in the region are still looking to strip out costs and the back office is shrinking. This isn’t a huge function in the region, but it’s still likely to be targeted for cuts as more institutions sign up to outsourcing arrangements.
“There’s an increasing popularity among banks to outsource IT, clearing and other back-office functions in order to save on the bottom line,” says Reed. “This could also spread to other back and middle office functions that are considered “non-core” and could result in some of these roles moving out of the region.”

After a subdued 2010, this year was hotly anticipated to be one of active recruitment in the Gulf financial sector. Unfortunately, political uprisings in the region, combined with an increasingly gloomy global picture, has meant another quiet 12 months. Nonetheless, some have benefited while others have fallen by the wayside. Here is our considered opinion on 2011.

2011 was a good year for :

Dubai and Qatar
Considering the move of senior investment bankers away from the Middle East back to Western markets this year, it doesn’t seem obvious that the main financial centres for international operations – Dubai and Qatar – have had a decent year.

However, one of the consequences of the Arab Spring is that more financial services professionals and organisation have been looking for regional safe havens. Both Qatar and Dubai have benefitted from an influx of new business and have consequently moved up the rankings in the latest Global Financial Services Index as well as moving up the desirability scale for expat workers .

In recent months the number of firms registering at both the DIFC and QFC has been on the increase and most commentators are anticipating more new registers in 2012.

Wealth management
In terms of recruitment, if there’s been one sector that has remained consistently expansive throughout 2011 it’s wealth management. For a start, there’s the fact that both international and regional players have been hiring throughout the year.
Then, there’s the trend of investment bankers in the region looking to leverage their contacts and move into a role in the ultra-high-net-worth wealth management sector. Finally, there’s the shake-up at Shuaa Capital – which announced plans to re-launch its investment bank as a platform for wealthy clients – which suggests it’s the place to be in the long term.

The appeal of sovereign wealth funds
Sovereign wealth funds have always had to perform something of a juggling act when it comes to recruitment; balancing the political requirements to offer attract careers to local candidates whilst drafting in international expertise to ensure they have the required financial expertise immediately available.

On the former point, they tend to target local candidates early, identifying bright students and mentoring them from high school, before offering an intensive technical training programme. The latter has been a little more tricky, however.
SWFs have been reluctant to pay out large incentives to attract international talent, but definitely have a requirement for investment banking, private equity and asset management expertise.

In Qatar, for instance, we understood that the QIA had plans to increase headcount by 100 this year, while other large SWFs in the region had an ongoing need to recruit. Generally speaking, with opportunities scant elsewhere in the world, their ability to attract this expertise has increased. The Abu Dhabi Investment Authority, for instance, recently took on the former chief executive of Merrill Lynch Alternative Investments, Benjamin Weston.

And 2011 was a bad year for :

Bahrain
This year was generally one of upheaval for the MENA region, with popular uprisings again the political regimes in locations as diverse as Tunisia, Egypt, Yemen, Palestine and Syria. However, in terms of financial centres in the Gulf, it was Bahrain where the most serious and violent clashes occurred.

The Shia majority in Bahrain rose up in protest against the ruling Sunni minority, with bloody consequences. More than 30 people have been killed since the protests began in February and the Bahraini government’s handling of the situation has been condemned by the international community and the kingdom’s reputation has inevitably suffered.
At one point, the anti-government protests were targeted at the financial centre in Manama, in a move that has since proved significant. A number of expat bankers and financial services professionals left the kingdom for safe havens in Dubai and Qatar, but organisations were slower to move.

French banks Credit Agricole and BNP Paribas, which both had significant operations in Bahrain eventually relocated staff to Dubai – as well as asset manager Robecco – but the larger organisations haven’t pulled out entirely.
Nonetheless, Bahrain’s financial sector will take some time to recover.

Investment banking
In the wake of the 2008 crisis, when many international banks pared back their regional headcount, the remaining teams on the ground in the Gulf were relatively small. Nonetheless, deal activity in the Middle East this year was particularly slow, and – with cuts happening elsewhere in the world – the region has inevitably shared some pain.
Equity capital markets has been particularly badly affected, but a number of investment banks, such as Credit Suisse, Credit Agricole, Citigroup, Deutsche Bank, Nomura and UBS, either relocated key people back to Western markets or made redundancies within their local teams. Meanwhile, large regional players like Shuaa Capital and EFG Hermes have also cut headcount in their investment banks.

Retail broking
It’s been another tough 12 months for those working in the brokerage space. While the argument in 2010 was that there should be more merger activity within the sector to give the smaller brokers (particularly badly affected by the slumping trading volumes) a better chance of survival, this year proved that even the bigger players are suffering.
The likes of EFG Hermes and Shuaa Capital – both among the larger brokers in the region – have been underperforming and both HSBC and Rasmala felt compelled to move out of the retail broking sector entirely. Overall, the number of firms operating in the UAE fell from 110 in 2010 to around 60 this year.

Emirates Airline Set to Create 8,500 Positions In a Two-Year Period

The Emirates Group executive VP Adel Al Redha stated that the firm requires over 8,500 new staff members, including pilots, flight attendants and technicians. Emirates will take delivery of fifty new aircraft in a two-year period, opening up many new jobs.

The airline’s website notes that the company has intentions to increase the number of nationals employed, following an internal plan of emiratisation that focuses on pilots and engineering jobs.

About 12 percent of the company’s workforce is made up of Emirati technicians, pilots and engineers. Emirates plans to double that figure to reach almost 25 percent.

Saudi Petrochemical Industry Set For $150 Billion in Investments

Ministry advisors state that by 2016 the petrochemical industry in Saudi Arabia will have recorded Dh 551 billion (or $150bn) in cumulative investments. A ‘golden era’ has dawned on the sector, according to Prince Faisal Bin Turki, although further development is required in the conversion sector to create local jobs. Prince Faisal spoke in Dubai at the Gulf Petrochemicals and Chemicals Association forum.

Prince Faisal stated that the industry’s rate of growth is the largest in its history, surging by around 250 percent since 2006. By 2016 petrochemicals, polymer and chemicals production is expected to reach beyond 100 million tonnes.

Saudi Arabia has the largest economy in the Arab world, and will experience annual production increases in methylene (230 percent increase over the 2006 figures) and propylene (300 percent increase).

Petrochemicals are being established as a key sector in the Gulf region. Nations like Kuwait, Oman and Saudi Arabia are pushing for economic diversification, moving away from oil and looking to create more jobs for a youthful, growing population.

Both local and global investors are entering the Gulf region’s petrochemicals sector, including Sabic (or Saudi Basic Industries Corp), Dow Chemical Co and Chevron Phillips Chemical Co. Affordable natural gas is available in the Gulf and is commonly used for plastic production.

This availability has boosted the Gulf’s competitiveness against the U.S. and European petrochemicals sectors, which rely on naphtha, a crude oil derivative that has risen in cost along with oil prices.

The ministry is working hard to bolster product portfolio expansions in the Kingdom, incorporating 120 new chemical and petrochemical products in the value chain and enabling downstream conversion industries to be created in the future, according to Prince Faisal.

The prince also stated that unless the Kingdom creates additional conversion industries in Saudi Arabia, the nation will lose out on job creation opportunities.

Many petrochemicals based in Saudi Arabia are exported, only to be imported back into the Kingdom as finished goods manufactured elsewhere. In fact, 85 percent of the polymers in the Kingdom follow this path, creating numerous jobs outside of the Kingdom.

UAE to Strengthen its Position

The Minister of the Economy in the UAE, H.E. Sultan Al Mansoori, stated that his nation’s economic position will be enhanced next year due to dealings within both the U.S. and Europe.

Al Mansoori noted that the financial crisis in Europe presents multiple opportunities. Advantages enjoyed by the UAE include a strategic location, establishment as a major gateway to the Middle East, security and stability in the economic climate and open, diversified economic policies.

The Minister made these statements during a meeting in Abu Dhabi, where he spoke with the Danish Ambassador to the Emirates, Poul Hoiness, and the Norwegian Ambassador to the UAE, Elin Bjerke. The trio discussed strategies to fortify the structure of bilateral dealings and economic cooperation that exist between the nations. Special attention was given to research, pharmaceuticals and innovation.

The significance of newly established air travel routes to Copenhagen, opened by Emirates Airlines, was noted by the Minister. He noted that such routes enhanced the trade dealings, tourism and investments between the UAE and Denmark. The Minister also stated that these air travel routes promote bilateral dealings with other nations in Northern Europe, such as Finland, Iceland, Sweden and Norway. Denmark is a well established meeting point for several international airlines serving the entire Nordic region.

Al Mansoori focused on his nation’s commitment to expand technical cooperation and investments to the Northern European nations, with a particular emphasis on Norway and Denmark. The UAE is looking to take advantage of the Nordic nations’ expertise in clean energy generation, education and communications.

Trade dealings between the Nordic nations and the UAE are sophisticated, with 100 Danish firms operating in the UAE and around 80 distributors and agents representing Danish products within the Emirates. Over 4,000 Danish citizens are residing in the UAE.

Cooperative projects in alternative energy are a possibility, as the Masdar initiative has allowed the UAE to garner significant experience in that field.

Advanced tourism promotion and exchange was agreed upon at the meeting. The two parties also spoke about why cooperation within innovation and small to mid-sized businesses is required.

Discussions between Al Mansoori and the Norwegian ambassador centered on the need to promote commercial and industrial cooperation, boost joint investments in a variety of fields and activate the free trade agreement signed in late 2010 between the Association of Scandinavia and the GCC.

Minister Al Mansoori also noted that the UAE will continue strengthening trade dealings with Norway, in an effort to establish strategic partnerships, promote development and capture the economic benefits present in the UAE and Norway. The minister mentioned how social and economic development in the UAE has stabilised social and economic spheres and created enhancements within the UAE’s investment climate, where several global firms have regional headquarters.

The investment climate and promising opportunities play an important role in strengthening the UAE’s position on the worldwide investment map, according to the minister. When speaking to the Norwegian ambassador, Al Mansoori noted that cooperation between the two nations is possible in many areas, such as industrial and non-oil sectors, as well as renewable technology and energy industries.

The minister extended an invitation to Norwegian firms, presenting the advantageous investment environment, business climate and open economic policies within the UAE and inviting businesses to exploit the opportunities available in a variety of economic sectors.

Elin Bjerke, Norway’s ambassador to the UAE, praised the Emirates’ economic development and appealing investment climate, noting that around 100 Norwegian firms are currently operating within the UAE market.

IIf 2011 was a year that saw the UAE’s jobs market stabilise after a recessionary couple of years, experts expect 2012 to be the year the country sees biggest job growth in the region.

First and foremost, jobseekers in the UAE can look at the public sector for good opportunities in 2012 as it is expected to lead job growth in the country.

Industries that are expected to drive job creation are technology, healthcare, education, retail and telecom, according to recruitment experts in the country.

“The governmental and semi-governmental sectors will lead the way, because of the increased spending by the governments of each country, in order to keep a high growth rate, support nationalization and develop the infrastructure of the country,” Konstantina Sakellariou, Partner, Marketing & Operations Director at Stanton Chase told Emirates 24|7.

“Additionally, the industrial sector seems to be among the strongest ones, especially given the emphasis of all the GCC countries in developing industrial free zones that will attract more and more businesses. Technology, education and healthcare are also important sectors that will experience growth in the Gulf,” she added.

If you’re looking for a well-paid job in 2012, you might like to consider jobs in some of the high-growth, high-turnover sectors.

According to recruiting experts, telecom, healthcare and even education are among industries where the greatest salary increases are likely to be given in 2012.

According to Hasnain Qazi, Middle East Business Manager at Huxley Associates, “healthcare, education and telecom will be the three most buoyant sectors taking into consideration the micro and macroeconomic conditions.”

Considering its growth potential in the country and the region, the technology sector is expected to contribute to pay-hikes and job-creation next year as well.

“Technology will lead job growth as most companies have an online window to their business. The equity of the CIO is continually rising. As well technology is intimately tied to risk, compliance and legal, which all companies have a growth agenda with,” Shane Phillips, MENA Regional Practice Leader – Financial and Professional Services at Stanton Chase told this website.

“The year 2012 and beyond will be the age of corporate governance in the Middle East and companies will be investing heavily in controls and IT systems such ERP and SAP to ensure they reduce their risks. As well new advances in technology will allow companies to reduce costs and create competitive advantages so investments here will pay dividends in the relatively short-term. So, technology will be a good growth area,” Phillips added.

Besides technology, he is bullish on healthcare, education and retail. “Hospitals and healthcare infrastructure is improving and growing. Customers are becoming more sophisticated and are demanding better services as well many funds, PE companies and other investment groups are investing here. KSA has the highest investment as a percentage of GDP in education in the world, an approach which is echoed in the healthcare sector as well. We are already seeing a lift there [but] there is a dearth of talent in these sectors. So, where will the talent come from? No one knows,” he adds.

Business Activity in Saudi Arabia Hits 3-Month High

Saudi business activity within the private non-oil economic sector hit a three-month high in November, as a result of rapid growth in employment, output and new orders, based on data from a recent published survey.

Measuring activity within the services and manufacturing sectors, the SABB HSBC PMI climbed from 56.7 points in October to reach 58.1 last month. These results are the highest recorded since August.

This Saudi Arabian index is seasonally adjusted. Recent results are well above the 50 –point result that marks the shift from contraction to growth.

The PMI surveys over 400 private firms and reported growth within new orders. That figure reached 67.7 points last month, the highest result since July and a significant increase from the October figure of 64.7. Employment within the Saudi non-oil private sector increased during the month of November as well, reaching a three-month high of 51.7, up from October’s figure of 50.1.

Weakened economies in the U.S. and Europe have affected Saudi Arabia, however the stable global oil prices and announcements of infrastructure and job creation projects worth multi-billion dollars have supported growth in the Kingdom.

Many firms surveyed stated that the strong performance put forth by Saudi’s construction sector has delivered benefits to their business. New export work experienced slower growth, as some businesses reported that Middle Eastern and North African political tensions, as well as Europe’s economic issues, have undermined overall demand.

Saudi Arabia and the UAE Experience the Region’s Largest Annual Job Growth Rates

The maximum amount of jobs generated within the region next year will be found in Saudi Arabia, based on statements made by regional recruitment experts.

Job creation will be led by the Kingdom, which has experienced GDP growth of 5 percent on a year-on-year basis for the last 32 years, despite many highs and lows. Saudi Arabia has ever been perceived as the Middle East’s growth engine, according to Shane Phillips of Stanton Chase.

Phillips, the Practice Leader for Financial and Professional Services in the MENA Region at Stanton Chase, also stated that Bahrain would likely continue to experience struggles. That nation does not have the fundamentals or size of Saudi to drive it beyond the crisis. MNC’s have moved out of Bahrain and little new FDI is expected for Bahrain, according to Phillips.

The UAE and Qatar will join Saudi Arabia in driving the job market, reported Huxley Associates’ Middle East Business Manager Hasnain Qazi. Qazi noted that recent employment trends indicate Saudi Arabia leads the pack in job creation, followed by Qatar. The UAE joins those two to make a group of three nations with the highest rate of growth forecasted. These expectations will have a positive influence on the job markets.

Stanton Chase Partner and Marketing and Operations Director Konstantina Sakellariou stated that consideration should be given to the rising emphasis on programmes of nationalization. These programmes prioritize nationals for placement in various positions, particularly in government and government-related sectors, which are incidentally leading the growth at the moment.

Current trends indicate that Saudi Arabia and the UAE have experienced the largest annual job growth rate. Monster.com’s October index is the most recent and shows that over the course of twelve months from October of 2010 to October of this year, online opportunities have grown within six of the seven nations. Saudi Arabia took the lead with a 49 percent growth rate, while the UAE had 7 percent growth and pulled ahead for monthly growth across all sectors.

Bahrain reported results unchanged from September’s with an 11 percent drop. The sharpest annual decline within the nations was reported by Bahrain. Qatar’s rate rose by 22 percent and recorded monthly recruitment activities consistent with the figures reported in September. Kuwait recorded month-on-month growth on the positive side, the first time that has occurred since June of 2011. Kuwait’s month-on-month growth was 3 percent higher from September to October.

Oman Investments in Free Zones Set To Create 20,000 Jobs

Higher private investments in the manufacturing, services and commerce sectors of Oman will be the result of extensive promotion of economic free zones in the Sultanate, according to the Minister of Commerce and Industry Sheikh Sa’ad Bin Mohammed Al Mardhouf Al Sa’adi.

Speaking at a recent forum in the Al Bustan Palace Hotel, the minister noted that the free zones are expected to bring in about $6bn in both domestic and foreign investments, as well as generating over 20,000 jobs. Indirect jobs alone should total 2,020.

Around 87 million square metres of land have been allocated between existing and yet to be constructed industrial estates. The total amount of investments in these estates sits at $9.4bn.

Investments of over 70 million rials from the PEIE (or Public Establishment for Industrial Estates) will cover both expansions to the existing areas and new zone construction. This figures includes investments in the Sumail Industrial Zone totaling 30 million rials.

Massive investments have flowed into the Sohar port industrial zone and the Salalah Free Zone is forecasted to draw about $3.5 billion in investments. Special Economic Zone Authority in A’Duqm, Yahya Bin Said Al Jabri, stated that these projects would create significant employment opportunities and boost the Omani economy.

He also noted that non-oil contributions would rise to 5 percent, while the re-export figures should increase along with the socioeconomic growth rate of Oman.

Inter-Arab trade in the Sultanate totaled $70 billion in 2009, which accounted for 9.5 percent of the foreign and Arab trade. AUFZ (or Arab Union of Free Zones) chairman Eyad Al Qudhah noted that this low rate indicates that further enhancements in Arab cooperation are needed, as well as the availing of beneficial opportunities within the region.

After Qatar posted the highest growth in the world last year, it is on the verge of reporting the leading growth for 2011 as well. Some are expressing concerns about this rapid growth, claiming it could result in overheating. Doha is carefully watching the economies of Qatar’s largest trading partners, according to reports from the Global Arab Network.

On a year-on-year basis the economy of Qatar expanded by a massive 41.8% during Q2 of 2011, as nominal GDP rose to $42.2 billion during the second quarter of this year, up from $29.7 billion during Q2 last year. The Qatar Statistics Authority reported this data back in October, revealing the astounding growth that follows an 8.8 percent increase during the first quarter of 2011.

The QSA stated that larger quantities of petroleum products and rising energy prices have driven the surging GDP. Liquefied natural gas contributed a large portion of the growth, with condensates and various natural gas liquids reporting major increases as a result of two new operations moving into full capacity.

Although this surging expansion is not expected to continue at the same rate through the third and fourth quarter, Qatar is still expected to record the fastest growth on the globe.

IMF predictions from September stated that Qatar will experience 18.7 percent growth this year, followed by 6 percent growth in 2012, resulting from several state investment programs reaching the completion stages.

The government will increase cash reserves as a result of this growth, and this year’s current budget surplus is estimated at $8.5 billion or 4.9 percent of the GDP for the 2011-2012 fiscal year, according to QNB Capital.

Rising outlays will reduce the surplus the following year, but the nation’s GDP is projected to experience 10 percent growth in 2012 and the budget will continue in the black. A QNB study stated that Qatar’s national economy would be $173 billion in 2011 and increase to $197 billion next year.

The threat of inflation looms over the growing nation, with the consumer price index reaching a 24-month high in August. If consumer demand continues to increase, inflation will continue to rise.

Salaries to public servants have recently been raised by 60 percent and military personnel have seen a 120 percent increase. These wage raises could prime inflation rates, although the QCB has committed to working at the situation, reducing any excess liquidity.

An IMF official warned that economic downturns in other areas of the world could have negative effects on the Qatari economy, as the nation relies on demand for oil and gas to fuel growth.

IMF director for Middle East and Central Asian regions, Masoud Ahmad stated that even the deep reserves that many GCC member nations have are not enough to negate the risks.

Qatar holds a good position with financial reserves, although the nation may still need to put protective measures in place to buffer problems in international banking or sovereign debt, as well as weaker emerging markets.

Finance and Industry in Bahrain Continue to Expand
Despite economic disruptions and a tough economic outlook, the financial and industrial sectors of Bahrain continue to grow during the second quarter of 2011, as reported by the Bahrain Economic Quarterly.

When compared to the 2010 data, the Bahraini financial sector experienced 1.7 percent growth during Q2 2011.

Both financial institutions and insurance companies reported positive performance, with 4.3 percent growth and 3.9 percent growth respectively, countering the declines reported in the offshore sector.

Manufacturing was up 3 percent on the year by June, preceding various commitments from international firms set to begin operations in the Bahrain International Investment Park.

Business loans expanded by 3.4 percent from the first quarter to the second, with loans to the manufacturing sector expanding by 15 percent. Various stimulus measures have been put in place by the government, including suspended labour fees, an action that has been extended to the end of 2011. Public workers have seen wage increases and the debt ceiling has been increased.

A sovereign sukuk stretching over seven years raised $750 million for the nation, highlighting the overall strength and stability of Bahrain. IMF expects that the Bahraini economy will see 1.5 percent growth this year and a further 3.6 percent growth next year.

Shaikh Mohammed bin Essa Al-Khalifa is encouraged by these numbers, identifying the opportunities in manufacturing and pushing for economic diversification in Bahrain. These figures also indicate positive results from the recent announcements and preclude an increase in foreign investments, according to Bahrain Economic Development Board’s chief executive.

The financial industry continues to hold a major role in the Bahraini economy, driving growth and providing thousands of jobs. Increases in the number of business loans indicates that this important sector continues to fuel growth and GDP expansion.

The Central Bank of Bahrain issued a recent statistic stating that there are now 408 banks in Bahrain, up from 401 last year. The growth resulting from stimulus spending, especially within the communication and transportation sectors, was cited with the Bahrain Economic Quarterly as well.

Reportedly the hospitality, real estate and construction sectors absorbed most of the adverse effects of the worldwide economic downturn and regional unrest. The Economic Development Board issues the Economic Quarterly report in order to be transparent, working toward creating a more attractive climate of investment for foreign firms.

The nation’s Economic Strategy and Vision 2030 is a responsibility of the Economic Development Board and used to fuel growth in the private sector. This growth will further diversify the nation’s economy and improve living standards by providing more opportunities for Bahrainis.

Saudi Arabian inflation accelerated to 5.3 percent last month, its fastest pace since January, as the world’s biggest oil exporter increases spending on housing and jobs.

The inflation rate rose to 5.3 percent, the Saudi Press Agency reported today, compared with 4.8 percent in the previous month. The cost of living index increased 0.9 percent in September from August, the report said. Annual inflation in January was also 5.3 percent.

Saudi Arabia announced earlier this year about $130 billion in spending to create jobs and ward off the political unrest sweeping through other Middle Eastern countries. The government had already pledged a $384 billion, five-year development plan to build new houses and expand non-oil industries.

“We’ve expected this now given higher oil prices as well as the government stimulus package and overall recovery and growth in the economy,” said Liz Martins, a senior economist with HSBC Bank Middle East Ltd. She said the inflation rate is not expected to climb much higher so long as the U.S. dollar continues its recovery. The Saudi riyal is pegged to the US dollar at a rate of 3.75 riyals.

Central bank Governor Muhammad Al-Jasser cut his forecast for economic growth this year to 5 percent and said the inflation rate had begun to stabilize, Asharq Al-Awsat newspaper reported Sept. 28. The bank’s earlier forecast was for a 6 percent expansion. The central bank said in August that inflation may accelerate during the third quarter on higher consumer spending.

West Texas Intermediate crude oil has increased 5 percent over the last year, while Brent has gained 18 percent.

DUBAI : The IT industry in the Middle East has matured in terms of infrastructure and solutions, but it is short on talent, an international soft skills development expert has said.

Edexcel Regional Director, Middle East/North Africa/Caribbean Mark Andrews said that supplying the right talent holds the key to development of the IT industry in the Middle East.

Andrews said the real challenge is getting the Middle East ready to absorb newly introduced solutions in the face of an alarming shortage of talent.

"It is impressive to see local and multinational companies displaying the latest corporate technologies. However, the question is whether we have the right people to manage these technologies and solutions that primarily address government agencies and private sector organisations alike," he said.

Andrews added: "All over the world, the IT industry is central to the way society operates on all levels. Those with the skills and creativity to master varied IT systems and to be at the cutting edge of new advances in the sector make themselves very attractive to the many employers who need their expertise."

Edexcel is a part of Pearson, one of the world's largest education services providers. It offers academic and professional qualifications and testing to thousands of schools, colleges, employers and other places of learning globally and has over four million learners enrolled in its highly regarded courses in more than 85 countries.

Andrews further said that in order to fight the shortage in IT, the industry should ensure that all the knowledge, skills and understanding to prepare IT specialists for managing IT systems are enhanced and developed.

The quest for talent in the Middle East is overwhelming and becoming a pressing concern for companies. Local IT companies are localising their staff, either by hiring local people to fill positions that used to go to executives from Europe, or hiring expatriates already working in the region.

However, they are facing tough challenges in finding people with the right skills and calibre.

According to a new report entitled “Going Global Employment Outlook: United Arab Emirates,” by Mary Anne Thompson, founder and president of Going Global, the Middle East is on its way to become once again the newest hotspot for jobs.

According to the collected data, despite the continuing civil unrest in the Middle East, UAE with no corporate or income taxes and a low import duty of 5 percent, remains a favorite location for multinational companies and expats. As economic recovery from the global financial crisis gains strength and stability returns to the economy, business confidence is slowly improving, accelerating the economic activity and employment.

Salaries in the Middle East have always been very competitive by Western standards, and moreover, they are tax free. GulfTalent predicts UAE salaries will increase further 6.3 percent this year.
Traditionally, job seekers have thought that only oil-related positions present growth here, but that assumption is not necessarily accurate, as diverse opportunities are present within various industries.

Oil and gas production remain the backbone of UAE’s economy, while the non-oil sector of the economy expands rapidly. Major growth areas include hospitality and tourism; media and e-comerce; aircraft and parts, security and safety equipment; IT equipment and services; medical equipment, services and supplies; architecture, construction and engineering services; building materials. UAE’s increasing demand for water and electricity also projects opportunity for growth for water and power projects .

According to a survey by the international recruitment company Antal, nearly 60 percent of businesses in UAE are currently looking to hire at managerial and professional levels, up from 46 percent in the first quarter of the year. Sixty-eight percent of companies also expect to hire staff for various middle and senior-level positions in the near future.

Meanwhile, the country have an estimated 12 percent unemployment rate, that is believed to be even higher among the young generation. Large number of Emirati university graduates fare flooding the market, but many of them do not possess skills and training, something that the UAE and the rest of the Middle East struggle with.

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.

The job index indicates that graduates with certain degrees and Arabic-English speaking skills are in high demand, bu with English the most common language, non-Arab job seekers also have strong chances. Industry experts believe getting the right person for the job is crucial and 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.

Bankers are finally feeling the pinch after three years of bumper profits and big bonuses despite government bailouts in the wake of the global financial downturn.

Major western lenders have announced more than 69,000 job cuts this year as they trim costs in anticipation of lower revenues.

The carnage is sweeping both sides of the Atlantic, with big layoffs at HSBC and Lloyds Banking Group in London and Bank of America and Goldman Sachs in the US. But the trouble is most pronounced in Europe, where a sovereign debt crisis continues to rattle policymakers and global markets.

"Almost every bank [in Europe] will be under-capitalised when faced with a raft of sovereign debt restructurings," says Jaap Meijer, an analyst at AlembicHC in Dubai.

"Key to resolving the crisis is addressing the sovereign risk, not endless strengthening of bank's balance sheets. The lesson of 2008 is that the later we act, the more we have to do."

HSBC, the world's second-biggest bank by market capitalisation, announced 30,000 job cuts on August 1, including 5,000 this year and 25,000 by the end of 2013. The British high street lender Lloyds Banking Group is cutting 15,000 jobs, joining UBS, Barclays, Royal Bank of Scotland, ABN Amro and Credit Suisse in the ranks of big European banks paring back their workforces this summer.

In the US, Bank of America announced 6,000 cuts last month. Wells Fargo, the Bank of New York Mellon and Goldman Sachs are also reducing headcounts.

The reasons for the cutbacks vary. Although most US banks are profitable, revenues are dropping as customers avoid taking on new debt.

Customers and businesses learnt a lesson about borrowing too much during the financial crisis, and they are now saving and paying off debt.

So far this year, financial companies in the US have announced 14,252 layoffs, according to July data from the consultancy Challenger, Gray & Christmas. That did not include the layoffs that Bank of America revealed last month.

European lenders face the same pressures, which have increased since the continent's sovereign debt crisis. Jean-Claude Trichet, the head of the European Central Bank (ECB), reiterated last week that lenders had ample cash, but the system remains strained. Eight European banks failed a second round of stress-tests in July, and many more barely passed.

"The recent European stress test has done little to allay investors' concerns about their ability to withstand a default by a European government," says Mr Meijer.

The sovereign debt crisis has hit some countries in Europe hard, including Greece, Ireland, Portugal, Italy and Spain.

After the EU and IMF arranged a second bailout for Greece this year, the ECB last month restarted a bond-buying programme to lower borrowing costs for the continent's troubled countries. A sovereign default has so far been averted. Yet it remains unclear how long Germany and France can continue to support the euro zone's laggards.

Banks in the US and Europe are also facing mounting legal problems. Government-backed mortgage companies - Fannie Mae and Freddie Mac - in the US are suing 17 big banks for US$196 billion (Dh719.91bn), alleging the banks misrepresented the soundness of home loans bought by the mortgage firms.

As job cuts figures balloon, bank executives are invoking the rhetoric of austerity and efficiency.

Lloyds is trying to save $2.4bn through spending cuts, most of which will come in the form of layoffs in the UK and a retreat from international markets.

"Lloyds must become leaner, more agile and more responsive," Antonio Horta-Osorio, the bank's chief executive, said last month. That would force the bank to refocus on its home UK market and "reduce our international presence" while selling off operations deemed inessential.

The turmoil for European and American banks has yet to hit the Middle East, and analysts do not expect it to have a major impact here. HSBC cut 68 UAE jobs in April, but Raj Madha, an analyst at Rasmala in Dubai, says the region's lenders faced a fundamentally different set of challenges than their western peers.

Kuwaiti Revenue and Surplus To Rise Even in Troubled Economic Times Oil prices were stable in July, only to experience major drops in the opening weeks of August due to renewed worry over the global economic climate. After the US sovereign debt status was downgraded from an AAA rating benchmark oil prices dropped by over $15 pb (or per barrel), leaving WTI at an 11-month low of $78. The Kuwaiti blend KEC faired better due to a time-lag in reporting, landing at $101 pb on August 9th.

It could be argued that a weakened global economy will have more effect on the price of oil than the downgraded US debt status. Some are comparing the collapsing oil prices to the negative conditions in 2008. However the loss of Libyan oil output should allow OPEC to maintain control of output and gives the group a defense for a price floor. Also, the 2008 decline offered evidence that oil prices under the $70 to $80 pb mark cannot be sustained due to production costs and financing requirements Kuwait, along with Saudi Arabia and the UAE, has boosted production levels by 1.1 million bpd (or mbpd). This increase still does not recover the 1.5 mpbd of Libyan output lost.

The alterations to oil supply and demand for 2011 will result in changes to the oil market. Predictions state that the most likely results will see an increase between 26 and 35 percent over the previous year’s oil prices.

If Kuwaiti government spending is recorded at 5 to 10 percent below budgeted numbers – as is expected – these conditions will create a surplus anywhere from KD 7.3bn to KD 11.4bn. Some of that amount will be allocated to the RFFG (or Reserve Fund for Future Generations). This would be the thirteenth successive surplus in Kuwait.

Staffing Provider Reports Higher Demand for Temporary Office Workers in the UAE Dulsco, an industry leader for staffing needs, has reported increased demand for temporary office staff during the summer holidays. As residents head out on holiday, businesses aiming for seamless operations are bringing in temporary staff to cover the gaps.

When compared to last year’s figures Dulsco reported a 9.5 percent increase in temporary office staff from May to July of 2011. This is likely a result of increased business activity. The highest demand is for office administration, data entry, secretarial, reception, accounts and logistics staff.

Dulsco HR Outsourcing Senior Manager Prabhu Dharmarajan stated that this increase in demand is natural with expats returning to their homeland for summer holidays. Since Ramadan and the seasonal holiday occurred at the same time there was an even higher than normal need for temporary workers. Businesses could not afford to operate on a lean staff and skilled, trained employees were brought in. Retailers, hospitality and logistics firms are especially busy during Ramadan. Small and medium-sized businesses hired temporary workers to maintain competiveness during this busy season.

Clients of the staffing firm generally put in requests for trained and experienced summer staff well ahead of time. This allows Dulsco to provide the necessary workers efficiently. Dharmarajan noted that many of his clients are searching for temporary staff with the experience to engage and inform customers. These workers are a true benefit to the business and add to the profits.

This news of increased summer hiring follows a similar finding from the Department of Economic Development. The recent poll of 500 Dubai companies (both free zone and offshore) revealed plans to increase the workforces of the service and manufacturing industries this year. Companies in the trading industry intend to maintain their level of staffing.

75,000 Employment Positions Created For Oman Nationals in the Last Six Months
A recent report citing Sheik Abdullah Bin Nasser Al Bakri, Minister of Manpower, stated that Omani locals filled almost 75,000 jobs in the six-month stretch from February to July of this year. Both the Omani government and private sector provided the positions.

Nearly 56,000 of these Omanis are currently working in their new positions. Efforts to get the remaining 19,000 employees working are underway, according to Al Bakri.

The private sector provided over 32,000 of the positions already filled, while the Omani government created around 23,000 jobs, as stated by Al Bakri.

During the political unrest that spread across the region earlier this year Omani nationals demonstrated and demanded an increase in job opportunities. Some regimes in the Middle East fell during this period, bringing an end to long-standing governments. The government and business community of Oman have responded with a significant increase in job openings across the state.

Source: GulfNews
A project to streamline the recruitment of Indian workers will be launched next month, Indian Ambassador to the UAE told Gulf News yesterday.

The joint project between the UAE and India will be formally launched in September, M.K. Lokesh said.
The project is a web-based system to attest employment documents for Indian workers seeking employment in the UAE.

The new system will exchange information on recruitment between the Indian authorities and the UAE Ministry of Labour, the ambassador said. The UAE Ministry of Labour, was not immediately available for comments yesterday.

Currently, the job contracts of skilled and unskilled Indian workers carrying passports with ‘Emigration Clearance Required’ stamps have to be attested by the Indian Protector of Emigrants and the Indian Embassy.

Complaints
After the approval from two Indian authorities, the employer submits the worker’s job contract to the UAE Ministry of Labour, which will be the relevant document to refer to, if any disputes arises.

However, there are widespread complaints about discrepancies in the terms of contract submitted to those three authorities. And there was no system to detect the discrepancies.

The ambassador said the new system will stop such discrepancies in employment contracts.

He said the system will help also develop a proper database of Indian workers in the UAE.

The system will benefit the majority of the two million Indian expatriates as about 65 per cent of them are manual workers.

The Indian Ministry of Overseas Affairs, the UAE Ministry of Labour and the Indian Embassy in Abu Dhabi have jointly developed the system.

Early this year, the Indian Embassy increased the minimum wage for 36 categories of skilled and unskilled Indian workers who want to work in the UAE.

Wealth management in the Middle East remains a relative hot bed of job opportunities, but within the sector competition for private bankers with the expertise to service the non-resident Indian (NRI) high net worth population is really heating up.

The Middle East is home to 750 ultra-high net worth NRIs, which is the fourth largest population globally, according to new research from Wealth-X. These individuals are worth around $465bn globally, it suggests.

Perhaps not surprisingly, therefore, more international wealth managers are eying the Middle East's NRI population and firms are recruiting private bankers on the ground to tap into the market.

"There's a growing demand for senior relationship managers to tap into the lucrative NRI family office businesses in the Gulf," says Magdy El Zein, managing director of Boyden Middle East. "Generally, most people are from an Indian background as they have the contacts and understand the culture. However, because the investment needs of NRIs are sophisticated, most also have experience in European or US markets."

Last week, J.P. Morgan unveiled Kirit Chauhan as managing director of its India offshore division in Dubai, as well as Nisar Sindhi and Deepak Saluja as executive directors in the team.

Deutsche Bank Private Wealth Management also hired Farooq Choudhury to develop its Middle East NRI team along with Shampi Chopra and Rajesh Mahadevan last month. This follows RBS Coutts' appointment of Santosh Keni as head of its NRI business in the Middle East earlier this year.

Most of these hires have been tasked with expanding the NRI business both in terms of attracting more clients and looking for potential new hires.

There's also the added motivation of being able cross-sell corporate banking products. Deutsche Bank has stated its intention to do this and J.P Morgan's recruitment of Deepak Saluja, who has had a long stint in a corporate banking role at Standard Chartered, suggests it's aiming to do the same.

Still, these roles are relatively lucrative. According to recruitment sources, a relationship manager serving NRIs can expect anywhere between $125-200k as a base.

Paul Clarke With all the talk of expats being marginalised within the UAE, it's perhaps reassuring to see that in the freezone of the DIFC (home to most international financial services firms) the workforce is still predominantly made up of foreigners.

Outside of the freezones, UAE companies are required to take on a quota of Emirati workers (usually around 40% in the financial sector), but just 3% of the 11,331 people employed in the DIFC at the end of 2010 – or 247 people – are nationals.

This shouldn't be entirely surprising; a large proportion of the financial services companies in the DIFC are in the global banks, private equity companies, law firms and fund managers and, as we've alluded to before, the majority of Emiratis entering the sector are going into commercial or retail banking roles.

More to the point, though, is that the DIFC seems likely to become more of an expat sanctuary in the Gulf going forward.

We're already hearing rumours that some financial services companies in Bahrain have lost up to 15% of their expatriate workforce, who have left for a new position in Dubai. Very often, these are senior executives, or people working in key roles where the skill-set is in short supply among the local population.

Some firms, such as Dutch asset manager Robecco, are moving their regional headquarters from Bahrain to Dubai.

"Dubai's reputation as a sanctuary for expats escaping the regional troubles is increasingly justified," says one financial services headhunter in Dubai. "We're being inundated with requests from people wanting to leave Bahrain or Saudi, and seeing more familiar faces around the DIFC – largely people who have taken it upon themselves to move."

Nearly 4,000 women (or 34% of the total employed) work in the DIFC. While this may seem like a relatively small proportion, it still compares well with the wider Middle East region, where only 25% of women enter the job market at all.

Rising Oil Prices Spur Public Spending That Will Drive Growth Despite the political turmoil in the Middle East and sovereign debt issues in Europe, higher oil prices will result in increased government spending across the GCC region for the second half of the year. Bank lending was slow in the first two quarters, but is expected to pick up.

Chief economist at HSBC, Simon Williams, has maintained his predictions for economic growth in the MENA region over the last three or four months. Growth for 2011 will be between 4.5 and 5 percent, according to Williams.

Public spending will drive that growth over the second half of the year. Williams also feels that private spending will increase as the political situation stabilizes.

GCC member states with an excess of petrodollars, particularly the UAE and Saudi Arabia, are ramping up their public spending. Because of the strengthened economic dynamics in the GCC investor confidence is increasing as well. Various bonds out of the UAE, notably the Dubai government and Emirates Airlines, were successfully launched in June and more are in the pipeline.

Regional governments have already announced spending packages, such as the multi-billion spending ordered by Saudi Arabian ruler King Abdullah back in March. The ruler’s orders included $67 billion for housing alone in order to meet a shortage in the Kingdom.

After sluggish bank lending in the first half of the year, economists expect bank confidence to improve in the second half. Williams expects that the cautious position the banks have taken will slowly dissolve over the next six months. Other experts, such as chief economist Alia Mobayed of Barclay Capital, predict a gradual recovery for bank lending in the second half of 2011. Mobayed expects this to occur in the UAE and Saudi Arabia particularly, as a result of increased public spending and improved liquidity.

Saudi to See Record Nominal GDP and 7 Percent Growth in 2011

The Kingdom should experience growth of around 7 percent in 2011, before scaling back to 4.4 percent for next year, according to a report by QNB Capital.

Higher energy prices will push the nominal GDP of Saudi Arabia beyond the previous record set in 2008. This figure should hit $549 billion next year.

QNB Capital also predicted that the current account, as well as the fiscal account, would report increased surpluses for this year and next.

The current account surplus was recorded at 17 percent of the Kingdom’s GDP in 2010 and is expected to reach around 26 percent of the GDP in 2011 and 2012.

Even with the surge in public spending, the government’s budget surplus should average around 12 percent of the GDP, according to the report.

Increased rental costs and higher prices for food and commodities imported into the Kingdom should push inflation to 6.1 percent this year.

The report stated that inflation should slow down to 4.4 percent in the following year as a result of house construction and deceleration in the prices of international commodities.

The IMF stated that economic growth in the Kingdom would reach 6.5 percent in 2011, an increase from the 4.1 percent seen last year.

Economic activity in the opening quarter of 2011 was stronger as a result of more oil output and increased government spending, according to the IMF. The IMF agreed that inflation would reach about 6 percent this year.

Recent government data, as of May 14, reported 4.8 percent annual inflation this past April as a result of increased transportation and food costs.

Other predictions state similar economic growth would occur in Saudi Arabia. Fitch Ratings reported that a healthy banking industry would drive growth to 5.8 percent for 2011.

Other rating agencies had predicted a stable position for Saudi banks.

Qatar Records Lowest Unemployment Rate for the GCC
Qatar’s 0.5 percent unemployment rate is the lowest in the GCC, although experts predict it will increase in the future.
In Bahrain and Oman unemployment reached around 15 percent, the highest level in the GCC. Saudi Arabia followed with a rate of 10.8 percent.

In the UAE the jobless rate reached 2.2 percent and in Kuwait that figure hit 2.4 percent, according to a report by Al Masah Capital focusing on unemployment in the MENA region.

From a regional standpoint, MENA has the highest rate of unemployment around the globe. Al Masah commented on how the political unrest jolted certain nations in the MENA region.

The Al Masah report stated that high inflation, high unemployment, corruption, a large divide between rural and urban communities and authoritarian rule were the cause of the numerous civil disturbances. According to the report, unemployment significantly contributed to the energy involved in the mass uprisings.

Conditions in the GCC are better, based on the report’s findings, with regional unemployment sitting at 4.2 percent. It also stated that 3.3 million new employment positions are required in the GCC. Currently around 70 percent of GCC jobs fall within the services sector. Across the MENA region only 52 percent of jobs are in this sector and worldwide the services sector accounts for around 43 percent of jobs.

Masah Capital’s CEO Shailesh Dash stated that expats would continue to dominate in the GCC job market, based on the preferences of employers in the private sector. Expatriates are hired more often than nationals due to their higher level of skill, lower salary expectations, increased productivity and accommodating recruitment arrangements.
Paul Holdsworth, Staff Writer, Gulf Jobs Market News

Hiring is continuing across the GCC real estate sector with highly competitive salaries at every level, according to those involved in recruitment. Over the long-term the outlook is positive.

Recruitment consultants note that realtors are on a hiring spree, especially in the UAE and Saudi Arabia, as well as Qatar. Many of these realtors are involved in government infrastructure and affordable housing projects. With higher oil prices and regime changes in the Arab region the recruitment picture looks positive, according to industry experts.

Even after a major slowdown, the real estate sector joins many other industries that are seeing increased hiring across the GCC. Numerous careers are opening up, including management positions within various disciplines such as valuations, project, asset and facilities management, accounting, corporate real estate services and the development of hospitality projects.

Much of the hiring is concentrated in the UAE at the junior to mid levels. A recent survey showed that 35 percent of MENA firms surveyed were hiring junior execs in the next three months, while 28 percent would hire executives and 27 percent needed senior execs. A further five percent would be hiring for the top positions.

Recruitment experts state that salaries remain stable, with an average of Dh 38,351 monthly across the disciplines. The employment market is currently balanced and in a salary comparison survey it was found that salaries in the Middle East are about 30 to 40 percent above those in Europe and the UK.

Many made redundant during the Great Recession have found other work, so the search for new real estate talent is going global. Experience in the Middle East is highly desired. Aggressive luring of talent from competitors is not occurring as frequently and skilled professionals with credentials are being sought after.

Job creation in Saudi Arabia accelerated to its fastest rate for a year and a half in May, according to the latest Saudi British Bank HSBC Purchasing Managers' Index (PMI).

PMI data for May signalled a further improvement in business conditions across the Saudi Arabian non-oil private sector.

Output and new business continued to grow sharply, the index showed, while job creation accelerated to the fastest rate for a year-and-a-half.

However, overall input cost inflation picked up to an unprecedented rate.

The Index registered 62.6 in May, almost unmoved from April's reading of 62.7, signalling a strong improvement in non-oil private sector operating conditions.

Total new orders taken by Saudi non-oil private sector firms continued to increase during the latest survey period, linked to better economic conditions, advertising campaigns and company expansions.

Despite slowing on the month, growth remained above the series trend while new export work rose at an accelerated rate due to an improvement in foreign demand, particularly from GCC countries, the index said.

Charges rose again in May, and at a near-survey record pace. Anecdotal evidence suggests that tariffs were increased principally to pass through input cost inflation to customers.

Total costs also rose at an unprecedented rate in May, with the acceleration reflecting a sharper rise in staff cost inflation.

Salaries and wages increased as firms both rewarded employees for good company performance and compensated them for rising living costs, the index added.

Last year the economy in the United Arab Emirates grew in real terms by 1.4 percent, after 2009 saw a decrease of 1.6 percent, according to the statistics office. It was noted that an uncertain construction industry might dampen the growth for this year.

The worldwide financial crisis of 2008 resulted in the shelving of projects in the billions for Dubai. This trade hub is famous for the tallest tower in the world and its artificial islands shaped like palms. Oil output also dropped during the crisis, as did prices of crude, which impacted overall growth.

In 2009 the GDP of the UAE fell 1.6 percent, the first economic decrease the Opec member has seen since 1988.

Data indicated that nominal GDP figures hit Dh 1,093 billion (or $297.6 billion) last year, up from the Dh 992.8 billion recorded in 2009.

The stats office noted that higher prices for oil helped to drive the UAE economy out of the crisis that was felt globally. Analysts, on the other hand, insist that recovery was broader.

Other factors that transformed the contraction into growth were tourism and hospitality, among other service sector industries, as well as exports, re-exports and industrial growth, according to Banque Saudi Fransi’s chief economist in Riyadh, John Sfakianakis. It was also noted that the National Bureau of Statistics moved their economic indicator base or benchmark year from 2000 to 2007.

Analysts said that risks are still present, especially in the property sector. Sfakianakis stated that construction and real estate would continue to exert negative pressures on the economy as they continue to decline.

He added that higher oil production, a booming service sector and industry will boost the UAE economy as it goes “back to basics” and continues on a path to recovery.

The turmoil and unrest spreading across the Arab region has not been seen in the UAE so far. The Minister of the Economy for the Emirates announced that expectations for GDP growth sit at 3 to 3.5 percent for this year.

A March Reuters poll forecasted expansion in the UAE, the third largest oil exporting nation in the world, at 3.4 percent.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News

Private banking provided a rare bright spot in an otherwise decidedly quiet hiring market in the Middle East during April.

Abu Dhabi Commercial Bank has appointed Lord Mervyn Davies of Abersoch as adviser to its board of directors.

Bain and Company, the consultancy firm, has named Emmanuel Yoo as partner, focusing on the banking and insurance sectors.

Bank Sarasin-Alpen, the Swiss private bank, has hired Neil Ashford as managing director and head of its new Abu Dhabi office.

Credit Suisse has bolstered its wealth management functions with the appointment of Fady Eid as market leader for Levant for private banking, Middle East & Indian subcontinent.

Deutsche Bank has expanded its global transaction services business in Saudi Arabia with the launch of trade finance and corporate cash management services out of its Riyadh branch.

HSBC has named Simon Vaughan Johnson as CEO of its Kuwait operation.

Lloyds TSB Private Banking has hired Markus Winzenried as head of Saudi Arabia and Egypt, and Daniel Steiner as senior relationship manager in its Middle East team. Both will be based in Zurich.

Saudi British Bank (SABB) has named Thamer A. Jan as the general manager of commercial banking in the kingdom.

For six months prior to March 31, 2011, the number of job vacancies advertised in the Middle East catapulted by 29 percent, the Dubai-based Arabian Business revealed on Tuesday in figures gathered from the recruitment firm Monster Worldwide.

Monster’s employment index, which tracks online jobs across the region, showed that the highest demand sprung from Qatar and Saudi Arabia.

The gas-rich Qatar led its regional counterparts with a 34 percent increase in job vacancies, while Saudi Arabia and Oman jointly ranked second at 31 percent increase.

The unrest-hit Bahrain saw a big jump of 14 percent in job vacancies in a sign that the unrest took a toll on employee retention levels, Arabian Business said.

The United Arab Emirates, the second wealthiest Gulf State after Saudi Arabia, saw only a modest 2 percent rise in job vacancies, driven by demand for candidates in the advertising, media and entertainment industries, the report said.

IAccording to the report, Saudi Arabia, the oil-dependent and largest Arab economy witnessed a demand in engineering, real estate and construction sectors as increased state infrastructure spending trickled down to the job market.

To preemptively stave off protests in the country, King Abdullah of Saudi Arabia offered $93 billion in handouts with a focused spending on housing. It is estimated that only 50 percent of Saudis own their homes.

But the demand for employees in the Kingdom’s retail and trade sectors tumbled 9 percent while the oil and gas industry saw a 2 percent decline.

The unemployment rate in the six members countries of the Gulf Cooperation Council was forecast to rise to 10.5 percent in 2010, according to a report published last year by recruitment company TalentRepublic.net, rising from 8.8 percent in 2009.

The international Labor Organization said that the unrest in North Africa and the Middle East was a byproduct of high unemployment there, especially amongst the younger generation.

But it also said that the lack of democracy was another factor.

In March 2011, results of a survey by the Dubai public relations consultancy firm, Asda’a, and the leading international polling firm, Penn Schoen Berland, showed that most youth in the Middle East and North Africa region desire democracy.

The poll showed that around 92 percent of Arab youth placed democracy as the most important change that they would like to see in their countries, making a huge difference from a 2008 survey where they prioritized economic opportunities as most important.

http://english.alarabiya.net/articles/2011/04/26/146858.html

DUBAI : The economy in Dubai is expected to experience around 4 percent growth this year thanks to recovering logistics and trade sectors, according to a government chief economist.

Mohammad Lahouel, the Department of Economic Development’s chief economist, spoke recently about the outlook for Dubai’s economy stating that growth will speed up this year due to strong recovery within the logistics and trade sectors.

Lahouel states that it is conservative to estimate growth of 3 to 4 percent for 2011, with expectations falling closer to the 4 percent mark.

Dubai is part of the seven-member United Arab Emirates and is said to have experienced economic growth of 2.2 percent in 2010, according to a local statistics centre. That growth came after Dubai saw a contraction of 2.4 percent in 2009.

The IMF (or International Monetary Fund) predictions put real GDP growth for 2010 at about 0.5 percent due to the fact that Dubai, a business and trade hub for the surrounding region, experienced trouble with the debt load of government-owned conglomerates in 2010.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News

DUBAI : Almost 85 percent of those surveyed expect more activity within the region’s recruitment market this year.

Based on the findings of BAC Middle East’s corporate survey the majority of firms in Dubai are expecting a busy job market for 2011. Responses concerning the business climate of 2010 were also positive as 86 percent of respondents said that their expectations were met or surpassed last year.

Optimism is the general consensus for the coming year as 95 percent of respondents say they land somewhere from fairly optimistic to very optimistic. The remaining 5 percent were listed as “fairly pessimistic” concerning the climate of business this year.

This trend continued concerning recruitment as a massive majority, around 85 percent, is expecting the region’s recruitment market to be more active this year and 72 percent are definitely going to see hiring action in 2011. Those respondents who do not expect to see any hiring in the coming year came in at only 3 percent, which is much lower than the 11 percent who responded in that way last year. Also, just 2 percent of the surveyed firms are expecting a reduction in staff levels for 2011 and a full 47 percent expect the local staffing numbers to swell.

Salary levels were harder to pin down and forecasts for increases ranged. There was a median forecast for a 5 percent increase in salary. BAC Middle East’s recruitment manager Siobhan O’Reilly stated that overall there are no major changes forecasted for salaries in 2011. The companies are still extremely conscious of their operating costs and the cost of living levels are still uncertain.

Even though there is no expectation for large salary increases this year, 73 percent of those surveyed see a stronger position for skilled workers looking to negotiate in 2011. O’Reilly says that there is a unique condition in the market that finds companies trying to control costs and maintain the level of salaries on one hand, while also realizing that their skilled workers are gaining strength in the realm of negotiation. O’Reilly noted that the workers who found themselves made redundant over the last couple of years have mostly been reestablished or relocated.

As fewer redundancies occur in the job market and there are less job seekers coming in from abroad the pool of those seeking employment has shrunk, especially in the executive and professional realm.

All responses for this survey were brought together in the opening quarter for this year and came from nearly 200 businesses in Dubai covering all of the major sectors including blue chip multinational firms, more local SMEs and businesses. The survey was aimed at those who work within or are involved in the recruitment and HR processes of their business.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News