Moving Towards a Slow Revival in DubaiCareer & Employment 

Moving Towards a Slow Revival in Dubai

They say that the economy is buoyed by spending- which can be either
private or public i.e. by consumers or the Government. As the USA and
Europe realized that they were in the grip of a recession, the early
market mood and expectations for economic growth were quite negative,
but fortunately their Governments reacted in time through the Central
Banks which assisted in providing economic and financial stimulus
packages. This helped in arresting the decline in some key industries so
that they could be turned around. As of now, it appears that the US and
European economies are moving out of the recession, but there are still
many question marks about the pace of recovery in the months ahead.
Nevertheless, any positive signs need to be appreciated and it appears
that they are turning the bend towards recovery. The outlook for 2010 is
much healthier.

In Dubai the atmosphere is still one of cautious recovery. Nonetheless,
many local experts believe that the problems will be contained and that
it will be seen as a regional issue rather than a global one. Credit
appears to still be in short supply, as many banks will worry about
making loans in a shaky economy. The Dubai World debt repayment issue
will likely bog down the activity of UK banks, whose exposure to the GCC
market is relatively high. This also adds to the worries of the banking
sector in general.

While it is expected that Dubai’s current problems will not have a major
impact on global recovery, there is still a long road to be traversed
and there may still be many stumbling blocks along the way. In relation
to employment, there has been a sharp downward adjustment in wages
offered for new positions over the past few months, resulting in a 20 to
30 percent drop in starting salaries on the average. However, some feel
that compensation packages had reached unsustainable levels during the
boom times and the adjustment has brought things back to more a
realistic baseline.

It is clear that cutting wages was crucial for companies to return to
profitability and as a result wage inflation in Dubai is likely to pick
up slowly given the excess slack in the jobs market. High unemployment
in some sectors suggests that the labor market will remain loose for
some months to come. Only when the economy expands again will wage
growth and compensation packages register an increase.

During these hard economic times, it is easy to sympathize with the new
jobseekers as they enter the UAE to look for a place to work and live.
It is far better to use the services of reliable job agents rather than
go it alone, or one tends to get disappointed with the low salaries
offered. Else rather than looking for jobs Dubai, it is better to move
towards job vacancies Abu Dhabi, as that emirate has a more sustainable
economy. At present job sites Dubai do not offer a lot of possibilities,
as any good recruiter will tell you.

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