Elections, Inflation, Interest Rates Impact Business Decisions
In a landscape marked by cautious optimism and global economic turbulence, a recent study conducted by recruitment consultancy Robert Half sheds light on the hiring intentions of UAE companies amidst uncertainty.
Released on Thursday, the study revealed that despite a robust 63 per cent of UAE companies planning to increase their workforce in the coming year, a significant portion remains hesitant due to external factors.
Chief among these concerns are impending parliamentary elections in key markets such as the US and the UK, cited by 33 per cent of surveyed business leaders as a pivotal factor delaying hiring decisions.
The survey, which polled 100 senior business decision-makers across the UAE, highlighted that an additional 32 per cent are waiting for interest rates to stabilize before committing to recruitment efforts.
These global issues, compounded by rising costs locally, have led 29 per cent of executives to implement hiring freezes within their organizations, according to the report.
Gareth El Mettouri, Director for the Middle East at Robert Half, underscored the dichotomy facing UAE businesses: “While the UAE economy shows signs of growth and potential, global uncertainty looms large, impacting hiring intentions.”
El Mettouri emphasized that many firms operating regionally and globally are recalibrating strategies to navigate these challenges effectively.
Looking ahead, the study anticipates a potential rush for skilled talent towards late 2024 and into 2025, as companies seek to compensate for delayed hiring activities.
Despite current freezes and delays, a majority of business leaders remain optimistic about growth prospects, with 67 per cent expressing high confidence in their organizations’ trajectory through 2024 and into the next year.
The survey also identified looming challenges in talent acquisition, with 37 per cent of firms foreseeing significant difficulties in securing technical skills over the next 12 months. This underscores the importance for organizations to retain existing talent amidst competitive pressures.
El Mettouri commented on the evolving dynamics, noting, “Business leaders foresee an overall increase in headcount despite the current cautionary hiring environment. However, this cautious approach could create a highly competitive market once hiring activities resume, particularly amid stagnant salary trends prompting a readiness for change among employees.”
The optimism among UAE businesses stems from factors such as increasing demand for products and services, expanding business opportunities, and an improving economic outlook. Nevertheless, the cautious sentiment persists as companies navigate the unpredictable global landscape.
As UAE companies brace for potential impacts from global elections and economic uncertainties, the coming months are poised to test resilience and strategic agility.
The findings underscore a delicate balancing act for business leaders as they weigh growth ambitions against external risks, ensuring readiness to capitalize on opportunities as conditions stabilize.
In conclusion, while the path ahead remains uncertain, UAE companies are preparing to adapt and thrive amidst evolving global challenges, safeguarding growth trajectories while strategically managing talent acquisition in a competitive post-pandemic era.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members