The Middle East might get its share of bad press but it is no deterrent to many professionals wanting to live and work there. I sit here today reminiscing of the days at my desk back in 2006 and 2007 receiving 10 to 15 calls a day from senior banking professionals showing an interest in relocating to the Middle East. I am sure other head-hunters can relate to this, but our job is to call potential candidates and recruit them for positions; so receiving 10 to 15 calls from top tier candidates was something I never complained about.
Back then it was simple. With oil prices hitting nearly US $100 a barrel the government was under pressure to invest this surplus wealth. Candidates from Europe and the US working within this field were buying into this growth story. I never had a problem “selling” Dubai, Abu Dhabi and Bahrain as a jurisdiction to relocate to for European or US candidates. The highly paid PR professionals hired by the Dubai Government were doing an excellent job for me. The mega real estate projects, growing oil wealth and the hospitality of Arab Culture all had their part to play; 2007 was definitely a candidate driven market. Middle Eastern clients were hungry for international talent, disregarding the candidate’s lack of regional experience or cultural fit to the Middle East, candidates were being made offers based on CV and telephone interviews and of course a hefty tax free salary. The main motivator to move was for the quality of life, entrepreneurial ambitions and candidates from the West were typically provided senior level roles with maximum exposure which was difficult to achieve in the Western markets.
I also clearly remember how in 2008/2009, when the liquidity crisis hit Dubai, there was an exodus of European/US expats from the UAE. Some of them lost their jobs and many others left of their own accord. Few left after collecting the guaranteed bonuses and many promised bonuses were never paid, leaving workers with a bad taste. For many the growth story never materialised into anything but a dream.
Today, bloated pay structures and bonuses have dried out. Base salaries are down; bonuses have been thin on the ground if not, non-existent. The liquidity crisis in the Middle East also exposed a deeper structural weakness; regulatory and compliance issues combined with lack of management transparency and reporting capabilities was a common reason given by many Western candidates as the reason for them to relocate back home.
Now in 2014, sitting at the same desk I ponder how the market has evolved over the last 7 years. The region is once again seeing strong signs of recovery. M&A activity is up, assets under management are significantly increasing and the truth is the region, the UAE in particular, has benefited considerably from the new cash flows as a result of the Arab Spring. Clients from nations such as Syria, Egypt and Libya are looking to invest their wealth and diversify their portfolios (source; ME Bankers).
The Middle East is redefining the playing field. Many banks have used the financial crisis as an opportunity to redefine their business model to tap into these new growth areas. There has also been a structural change in regulatory framework. According to an article in ME Bankers, The Foreign Account Tax Compliance Act (FATCA), Automated Exchange of Information (AEI) and other regulatory bodies are also urging local banks to improve their reporting capabilities and management. Over the past six months, AP Executive’s emerging markets team has seen a significant increase in demand in the Middle East for British and US qualified CFOs. The Investors and shareholders of private equity firms and investment banks in the region are gearing up to comply with new regulations and this time they are keen to get the fundamentals right.
Regional banks and private equity firms are also heavily investing in human resource professionals and direct recruitment teams. We are seeing a significant increase in demand for top tier human resources professionals from the UK and Europe. Back in 2007 the HR department might comprise of a single individual who looked after training, development and recruitment, but those days are over. Firms are also investing heavily in compliance and operational support staff from the bottom up. The clients in the GCC are realising the importance of building a rigorous performance and talent management platform.
These moves are a step in the right direction; it is evident that the clients in the Middle East are seriously addressing the issue of building a firm based on international best practice. However, candidates are still left with bad memories and broken promises. This does not help to change the perception and only makes my job as a head-hunter much more difficult. I have certain responsibilities to my clients and candidates.
Changing Perception
The client perception has also changed. The clients are no longer looking for just anyone from the Western hemisphere to relocate. Unlike 2007, the clients require candidates to have GCC experience. Specifically in private equity, the clients are looking for candidates who have the understanding of regulatory framework and deal sourcing capabilities with the GCC region. The clients also look for candidates who have cultural affiliation to the Middle East as they consider them to be a more long term fit. Although the business language throughout the GCC is English, clients nowadays are keen on hiring Arabic speakers from countries like France, UK and US as they are also considered to be a lasting solution. Also, in markets like Saudi Arabia, it has become a challenge to communicate with locals unless you speak the language.
Similarly, there is a significant number of Western expats now living in the GCC. Clients now have the option of sourcing expat candidates who have international experience but are already living in Dubai, Doha and Muscat. Thus, they now have wider options of sourcing Western expats already in the region who have shown their commitment by staying put and weathering the economic downturn. These candidates today are the most sought after talent in the region.
Candidates are no longer driven by the hype they have read and heard, and understand the dynamics of the region and are more aware of them. Today, I get a lot of calls from candidates about a particular opportunity and I hear them asking the right questions. They are much more cautious on who they would like to work for and much more diligent in their research.
Know Your Employer
My main piece of advice on relocation for candidates from Europe, UK and the US is to know your employer. It can be challenging to get much information on regional investment banks and private equity firm, but I strongly recommend doing thorough research on the employer and speaking to people in their network. A company with solid management with international experience are the type of firms Western professionals should be most interested in. Regional banks with international shareholders or private equity firms with international LPs should provide more comfort in terms of international best practice followed by a reputable company.
Why the Middle East?
I always encourage my candidates to think about their motivation to move to the region. To survive and excel in emerging markets the candidate must have a long term mentality. Considering GCC to be a place to make a quick tax free income is no longer relevant and clients are cautious of such fair-weather candidates. It’s important to ask, what else does the move have to offer? Moving just for work, away from established securities can be challenging.
Making the Most out of the Interview Process
In the international recruitment environment the first interview is always a telephone or a Skype interview. I have often noticed that candidates can be too shy to ask detailed questions via this interview model, assuming that such details will be discussed in person. I encourage all of my candidates to be thorough in the telephone interview, especially if the interview is for a regional bank and the candidate is unfamiliar with their track record. I always ask the candidate to call their contacts in the region and check the references of the client
Negotiating Contracts
Contracts in the Middle East can be tricky as the region has a culture of doing business by word of mouth, especially when it comes to guaranteed bonuses. I always suggest that before accepting the offer the candidate should be open minded - the contracts can sometimes be written in Arabic with an English offer letter. This is often due to local regulations and thus the candidate should always ask the HR department to provide a detailed English written copy. If possible candidates should hire a translator to make sure there are no inconsistencies.
Compensation Structure
Many clients in the GCC provide hardship allowances, education for children, housing and representation allowances in addition to the base salary. It is always advisable to check with your employer if your bonus is pegged only to the base salary or the overall compensation package.
Relocation Allowances
Relocation can be a big challenge and most firms will help with relocation and provide an allowance for it. However, I have seen a gap between expectations of Western candidates and what is provided. I often check the details of the relocation allowance during the verbal offer stage to avoid any surprises at a later stage.
Making a career move to a new company is always a big decision. When it comes to moving to a different country and culture there are many different variables that should be considered. The best way to neutralise this change is by working with a good recruitment consultant with a track record of relocating international talent in the GCC.
Sumit started his recruitment career in 2007 and specialises in senior level searches across global emerging markets. Prior to joining AP Executive, Sumit worked for a global executive search firm in Dubai as an associate researcher and also attained valuable in-house recruitment experience at a global Investment bank in London.
Based in London, Sumit is responsible for senior hires in M&A, Private Equity, Asset Management and Hedge Fund businesses.
sumit.sandhu@ap-executive.com
Direct Dial: +44 207367 0608