Hedge fund managers are drawn to the UAE’s expanding financial landscape but face brutal employment conditions, characterized by job insecurity and high living costs. Analysts caution prospective employees to secure robust contracts and be aware of the transient nature of their roles, particularly in light of rising expenses and strict visa limitations.
Hedge fund managers are increasingly flocking to Dubai and Abu Dhabi, where new dedicated infrastructure like a hedge fund building in Dubai and a hedge fund island in Abu Dhabi signal growth. However, as summer approaches, many in the sector are re-evaluating their moves due to precarious employment conditions.
Despite the appealing lifestyle, job security in the UAE’s hedge fund sector is minimal, characterized by a ‘hire and fire’ culture. A buy-side consultant noted, “There’s very little job security. You’re here one day. The next day you may be gone.” Furthermore, employers enjoy the freedom to terminate contracts under vague ‘legitimate reasons’.
A social media post by headhunter Christie Doderer spoke to these challenges, alleging that a prominent hedge fund in Dubai engaged in dubious employment practices. This lack of stability has led to instances where employees are relocated only to face sudden dismissal without adequate explanation.
Companies like Brevan Howard demonstrate this trend, having recently seen their Middle East office head, Oualid Lahsini, leave soon after joining. Additionally, workers face financial pressures with rising living costs, as rental prices soar in areas like Dubai Hills and Jumeirah Village.
Moreover, the competitive job market complicates situations further, as senior decision-makers are predominantly located in financial hubs like New York and London, making job searches particularly challenging. Individuals may find their UAE jobseeker visas expire in 120 days, necessitating an exit from the country. One portfolio manager advises future migrants to secure a two-year contract or a longer-term golden visa, underlining that “It’s brutal here.”
As the summer heat sets in, the struggle for job security and employment stability in the UAE’s hedge fund sector raises concerns among professionals navigating this challenging landscape.
The UAE’s hedge fund sector attracts talent but presents significant employment risks. Many professionals face precarious job security characterized by a culture of rapid hiring and firing. The rising cost of living complicates the situation, alongside challenges posed by job market dynamics and temporary visa restrictions. Therefore, potential movers are advised to secure favorable contracts or longer visa options to mitigate these risks.
Original Source: www.efinancialcareers.com
