Latest news with #CooperFitch
Al Etihad
05-05-2025
- Business
- Al Etihad
UAE job market grows 1.25% in Q1 2025 as employers prioritise skills and strategy
6 May 2025 01:24 KHALED AL KHAWALDEH (ABU DHABI)The UAE recorded a 1.25% rise in job opportunities during the first quarter of 2025, according to the Cooper Fitch Q1 2025 Employment Index, marking a steady start to the year in an evolving employment landscape shaped by digital transformation, policy changes and sectoral marginal, the global recruitment firm says this increase reflects UAE employers' cautious optimism despite a slowdown in the global job report said that firms are targeting strategic recruitment and internal efficiency, especially in sectors such as oil and gas, healthcare and growth is underpinned by the strengthening of the UAE's non-oil economy, with sectors such as trade, real estate and technology seeing stable recruitment demand."Early signals suggest that some traditionally high-growth sectors may be approaching a new maturity phase as the focus shifts from expansion to efficiency. These patterns raise timely questions about how the region's labour market is evolving," the report of the stand-out areas was the increase in hiring for AI and digital jobs – growing 3% across the GCC in the first quarter of the to Fitch, the region as a whole ranked above the global average for interest and investment in technology, with 81% of GCC companies surveyed in the report planning to boost tech investment and 72% ranking AI as one of the top innovation fundamental shift in hiring criteria was reinforced in a recent LinkedIn survey cited by Marzio C, which found that 80% of professionals in MENA believe employers now value skills more than degrees. Marzio said this trend was encouraging for career-switchers and self-taught professionals with digital competencies."The UAE job market is charging ahead into 2025 with optimism and innovation. Global shifts in technology and policy are reshaping how employers hire and how professionals build their careers in the Emirates," Marzio survey found that employers are adopting AI-powered recruitment tools, using them for resume screening, candidate matching and even virtual 74% of professionals in the region surveyed believed that AI tools help them work more efficiently, further validating the shift toward tech-led hiring, according to the optimistic economic momentum, salary growth has largely stalled. The Cooper Fitch report noted a 0% average increase in UAE salaries in Q1 2025, citing population growth and cautious employer strategies. Nonetheless, 71% of employers either maintained or increased remuneration for new recruits over the past year, though this marked a 10% year-on-year decline.
Arabian Post
05-05-2025
- Business
- Arabian Post
Dubai's Housing Market Faces Unprecedented Strain Amid Surging Population
Dubai's residential property market is grappling with mounting pressure as the city's population swells, leading to an unprecedented demand for housing that outpaces current supply levels. By the end of March 2025, Dubai's population had reached 3.92 million, with an influx of 89,695 new residents in the first quarter alone—averaging nearly 1,000 people per day. This surge follows a net population increase of 170,478 individuals in 2024, marking the highest growth since 2018. The rapid demographic expansion has intensified the strain on the housing market, where supply has struggled to keep pace. ValuStrat's latest data indicates that only 58% of the projected residential supply was delivered in 2024, amounting to approximately 27,000 completed homes—the lowest annual delivery in six years. This shortfall has contributed to significant increases in property prices and rental rates across the emirate. The ValuStrat Price Index reported a 27% year-on-year rise in residential property values as of January 2025. Villa values climbed by 31.2%, while apartment prices increased by 23.1%. Notably, villa communities such as Jumeirah Islands, Palm Jumeirah, Emirates Hills, and Dubai Hills Estate have witnessed substantial capital gains, with some areas surpassing their 2014 price peaks. The off-plan property segment has also experienced a surge, with registrations growing by 37.9% annually in January. Off-plan transactions accounted for 69.1% of all home sales during the same period, reflecting strong investor confidence in future developments. Top-performing off-plan locations included Dubailand Residence Complex, Emaar South, Damac Hills 2, Jumeirah Village Circle, and Business Bay. Rental markets have mirrored the sales trends, with apartment rents increasing by 13% and villa rents by 5.8% over the past year. The rising cost of living, driven by housing expenses, has become a pressing concern for residents, particularly as average salaries have remained stagnant. A survey by Cooper Fitch highlighted that despite economic growth and foreign direct investment, average salaries in Dubai are projected to see no increase in 2025. See also Ajman Bank Exits Gulf Navigation Amidst Major Acquisition Shift The luxury property segment continues to attract high-net-worth individuals, with Dubai constructing nearly 9,000 villas by the end of this year and planning an additional 19,700 in 2025. However, the market still faces a shortage of luxury properties, with listings for houses priced over $10 million significantly decreased. Prime neighborhoods like Palm Jumeirah have seen a 20% price increase, yet Dubai's luxury real estate remains relatively affordable compared to cities like London and New York. Despite the booming market, concerns loom over the sustainability of such growth. The city's history of boom and bust cycles has prompted caution among investors and policymakers. Enhanced mortgage regulations introduced post-2008 have added some stability to the market, but the rapid population growth continues to strain infrastructure and the quality of life for residents.
The National
23-04-2025
- Business
- The National
Most UAE firms pause hiring in first quarter as corporate tax and costs add up
Most companies in the UAE paused hiring in the first quarter of 2025, choosing instead to operate with existing staff, according to recruitment company Cooper Fitch. The country recorded a 1.25 per cent increase in hiring activity in the January-March period, compared to the previous three months, with employers prioritising efficiency over headcount growth, it said in a report on Wednesday. This indicates a maturing market shifting from volume hiring to strategic recruitment, the consultancy said. 'The UAE experienced considerable growth in hiring last year. So, to continue to grow by 1.25 per cent is really strong,' said Trefor Murphy, founder and chief executive of Cooper Fitch. 'It's gone from being a developing market to a developed market to now being a highly developed market. There may be a slight reduction in tiny pockets such as consulting, supply chain, procurement, manufacturing and human resources. But hiring is quite dominant in Dubai in other sectors such as legal private practice, trade, technology, and real estate.' Mr Murphy attributed the cautious hiring to downward pressure on profits and Ebitda (earnings before interest, taxes, depreciation, and amortisation) rates. With the introduction of corporate tax, surging commercial rents, service fees and salary increases driven by the cost of living, the era of double-digit profitability for businesses, particularly in certain sectors, is reducing, he said. To remain profitable and expand, organisations are looking at who they want to retain and how to retain them much more diligently. Regionally, Saudi Arabia led hiring growth, with a 3.5 per cent rise in job opportunities, driven by Vision 2030 activity in tourism, infrastructure, aviation and the digital economy, Cooper Fitch found. Hiring was strong in technical, commercial and operational roles, with the kingdom's non-oil sector recording its strongest quarterly job creation in years, the research found. However, Mr Murphy said it was a misconception that professionals who relocate to Saudi Arabia from elsewhere receive a 40 per cent or 50 per cent salary increase. 'There is no parity yet, but we are not far from it. So, there's not much of a difference in salaries for a chief financial officer in Saudi Arabia versus the UAE. There might be a slight salary premium for Saudi, but it's nothing like it would have been up to three or four years ago,' he said. On whether the kingdom is slowing employment growth as it reins in spending, Mr Murphy said the Saudi government is stress testing all of its spends. 'But that's not a March 2025 story, it's a May 2024 story. However, the public sector organisations in Saudi Arabia are particularly buoyant about hiring, making new hires and creating new jobs,' he added. 'At the same time, they'll have to go through a process of reducing the public sector wage bill in Saudi Arabia. There's still too many people working in the public sector.' The kingdom's sovereign wealth fund, the Public Investment Fund, has been asked to look at its spending patterns, and the 'first step of that is reducing the services they're buying, in terms of consulting, strategy, project management, financial advisers, HR, recruitment and legal'. 'Instead of buying these services, public sector firms are looking at building it themselves and managing more things internally,' Mr Murphy said. Across the wider Gulf region, hiring activity rose by 1.5 per cent. Qatar experienced a 3 per cent gain in new jobs, supported by hiring in the liquefied natural gas sector and continued investment in smart city development. These projects are generating demand for engineering, logistics and project management talent, Cooper Fitch said. Job growth in Kuwait remained flat, reflecting cautious recruitment amid continuing fiscal planning. Hiring in Oman dipped 1 per cent in the first quarter as companies reassessed staffing needs. Bahrain experienced a 3 per cent contraction in job creation, the region's largest, particularly in tourism and logistics. Mr Murphy said the net impact of US tariffs will be very limited on jobs in the Gulf. 'While oil exports remain exempt from new US tariffs and immediate labour market disruption is expected to be minimal, sectors with US-bound exports, such as aluminium and petrochemicals, are now reassessing hiring and production strategies. Continued trade negotiations and broader sentiment may still influence hiring decisions in the months ahead,' the Cooper Fitch report said. Escalating trade tensions between the US and China have heightened fears of a global slowdown, and although the Gulf is not directly involved, the potential impact on oil demand, trade routes, and investment sentiment could affect employment in energy, logistics and tourism sectors, it said. 'On the other hand, these shifts may accelerate efforts to strengthen intra-GCC trade, domestic production and high-value sector growth, potentially unlocking new employment opportunities in logistics, food production and advanced manufacturing.'
The National
23-04-2025
- Business
- The National
Most UAE companies pause hiring in first quarter as corporate tax and high office costs add up
Most companies in the UAE paused hiring in the first quarter of 2025, choosing instead to operate with existing staff, according to recruitment company Cooper Fitch. The country recorded a 1.25 per cent increase in hiring activity in the January-March period, compared to the previous three months, with employers prioritising efficiency over headcount growth, it said in a report on Wednesday. This indicates a maturing market shifting from volume hiring to strategic recruitment, the consultancy said. 'The UAE experienced considerable growth in hiring last year. So, to continue to grow by 1.25 per cent is really strong,' said Trefor Murphy, founder and chief executive of Cooper Fitch. 'It's gone from being a developing market to a developed market to now being a highly developed market. There may be a slight reduction in tiny pockets such as consulting, supply chain, procurement, manufacturing and human resources. But hiring is quite dominant in Dubai in other sectors such as legal private practice, trade, technology, and real estate.' Mr Murphy attributed the cautious hiring to downward pressure on profits and Ebitda (earnings before interest, taxes, depreciation, and amortisation) rates. With the introduction of corporate tax, surging commercial rents, service fees and salary increases driven by the cost of living, the era of double-digit profitability for businesses, particularly in certain sectors, is reducing, he said. To remain profitable and expand, organisations are looking at who they want to retain and how to retain them much more diligently. Regionally, Saudi Arabia led hiring growth, with a 3.5 per cent rise in job opportunities, driven by Vision 2030 activity in tourism, infrastructure, aviation and the digital economy, Cooper Fitch found. Hiring was strong in technical, commercial and operational roles, with the kingdom's non-oil sector recording its strongest quarterly job creation in years, the research found. However, Mr Murphy said it was a misconception that professionals who relocate to Saudi Arabia from elsewhere receive a 40 per cent or 50 per cent salary increase. 'There is no parity yet, but we are not far from it. So, there's not much of a difference in salaries for a chief financial officer in Saudi Arabia versus the UAE. There might be a slight salary premium for Saudi, but it's nothing like it would have been up to three or four years ago,' he said. On whether the kingdom is slowing employment growth as it reins in spending, Mr Murphy said the Saudi government is stress testing all of its spends. 'But that's not a March 2025 story, it's a May 2024 story. However, the public sector organisations in Saudi Arabia are particularly buoyant about hiring, making new hires and creating new jobs,' he added. 'At the same time, they'll have to go through a process of reducing the public sector wage bill in Saudi Arabia. There's still too many people working in the public sector.' The kingdom's sovereign wealth fund, the Public Investment Fund, has been asked to look at its spending patterns, and the 'first step of that is reducing the services they're buying, in terms of consulting, strategy, project management, financial advisers, HR, recruitment and legal'. 'Instead of buying these services, public sector firms are looking at building it themselves and managing more things internally,' Mr Murphy said. Across the wider Gulf region, hiring activity rose by 1.5 per cent. Qatar experienced a 3 per cent gain in new jobs, supported by hiring in the liquefied natural gas sector and continued investment in smart city development. These projects are generating demand for engineering, logistics and project management talent, Cooper Fitch said. Job growth in Kuwait remained flat, reflecting cautious recruitment amid continuing fiscal planning. Hiring in Oman dipped 1 per cent in the first quarter as companies reassessed staffing needs. Bahrain experienced a 3 per cent contraction in job creation, the region's largest, particularly in tourism and logistics. Mr Murphy said the net impact of US tariffs will be very limited on jobs in the Gulf. 'While oil exports remain exempt from new US tariffs and immediate labour market disruption is expected to be minimal, sectors with US-bound exports, such as aluminium and petrochemicals, are now reassessing hiring and production strategies. Continued trade negotiations and broader sentiment may still influence hiring decisions in the months ahead,' the Cooper Fitch report said. Escalating trade tensions between the US and China have heightened fears of a global slowdown, and although the Gulf is not directly involved, the potential impact on oil demand, trade routes, and investment sentiment could affect employment in energy, logistics and tourism sectors, it said. 'On the other hand, these shifts may accelerate efforts to strengthen intra-GCC trade, domestic production and high-value sector growth, potentially unlocking new employment opportunities in logistics, food production and advanced manufacturing.'
Al Etihad
26-03-2025
- Business
- Al Etihad
Over 40% of UAE organisations distribute bonuses of up to 2 months' salary in 2024
26 Mar 2025 22:23 MAYS IBRAHIM (ABU DHABI)While 2024 saw cautious bonus distributions due to budgetary constraints, 2025 is set to bring renewed optimism, according to the latest Cooper Fitch 2025 UAE Bonus Report. It revealed a significant shift towards performance-based incentives rather than team-wide rewards, reflecting the increasingly competitive job most common bonus category consists of payouts equivalent to one to two months' salary, a strategy adopted by 44% of organisations."Despite financial improvements in sectors, nearly one in three employees did not receive a bonus in 2024. Companies carefully structured their bonus strategies to balance cost pressures with attracting and retaining talent," the report more generous, 23% of firms provided bonuses of three to five months' salary, particularly in industries such as banking, consulting, and technology. Bonuses exceeding six months' salary were far less common, awarded by only 5% of companies."These substantial payouts were concentrated in banking and consulting, where total compensation heavily relies on performance-based incentives to align rewards with individual and company success," the report sectors remained cautious with bonus payouts, as 28% of organisations chose not to distribute bonuses at all in 2024, a trend similar to 2023."Industries like aviation, government, media, and retail held back due to budget limits, shifting priorities, and market uncertainties. While aviation saw strong growth, bonus practices varied. Media adapted to digital changes, and retail faced shifting consumer demand, leading many companies to remain conservative with bonuses." Who's Getting the Biggest Payouts? The report highlighted a clear divide in bonus distributions across industries in and financial services led the way, with 10% of organisations awarding bonuses exceeding six months' salary, primarily aimed at retaining top healthcare sector also saw strong bonus activity, with 50% of organisations offering between three and five months' trend is largely driven by the UAE's investment in medical infrastructure and the need to attract top professionals, according to the report."Consulting followed at 38% as firms competed to retain experienced advisors in a rapidly evolving business landscape. The energy, utilities, and renewables sectors also saw notable payouts at 19%, highlighting the industry's push toward sustainability and the demand for skilled experts to lead critical projects."Conversely, approximately 22% of government entities, 25% of logistics firms, and 27% of energy companies reported no bonus distributions for 2025."Retail and e-commerce also faced challenges, with 53% of organisations keeping bonuses in the 1–2 months' salary range. Rising costs and high turnover constrained their ability to offer more competitive rewards." The report also highlighted the growing adoption of long-term incentive plans (LTIPs), particularly within banking, consulting, and real estate industries. These strategies are becoming increasingly popular to align leadership rewards with broader business objectives.
