Rising unemployment levels in the UK could see more Brits seeking jobs on Dubai shores, according to experts.
Against a backdrop of the UAE’s recently clarified personal status laws, UK workers could seek out Gulf employment opportunities as coronavirus continues to blitz jobs in the UK.
The jobless rate in Britain jumped to 4.8 percent on Tuesday, its highest since 2016, official data showed.
The reading for the third quarter compared with an unemployment rate of 4.5 percent for June-August, the Office for National Statistics said in a statement.
According to Wes Schwalje, COO of Dubai-based government research firm Tahseen Consulting, recent changes to UAE laws – including relaxation of cohabitation laws, alcohol licence legalisation and clarification on inheritance and divorce rights – are likely to “build more confidence in the UAE as a destination to stay, work, and play.”
“Some of the previous UAE laws were sensationalised in the global press and that kept some people away,” Schwalje said.
UAE cost-cutting
However, the COO warned that the UAE is facing its own economic headwinds as it continues to battle the global coronavirus pandemic.
“Cost-cutting in response to Covid-19 is still very much impacting the job market, and Dubai remains the 23rd most expensive city in the world to live according to Mercer,” he said.
Our latest labour market statistics have been published for the period July to September 2020 https://t.co/EaXPo7Rbpo pic.twitter.com/k6XhUfDxOy
— Office for National Statistics (ONS) (@ONS) November 10, 2020
Activity in Dubai’s non-oil private sector eased in October, according to the seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index (PMI).
The PMI declined to 49.9 in October from 51.5 in September, edging below the 50 mark that separates growth from contraction.
The reading signalled an end to the growth trend seen in the third quarter this year, with the non-oil private sector registering the slowest output growth in five months.
However, Schwalje added that declining housing costs in the UAE, combined with liberalisation of cohabitation, could still be a “strong driver” of increased interest in relocating to the UAE in the short term.
There were 782,000 fewer employees paid on payroll in October 2020 than in March, around the time when the #coronavirus lockdown began across the UK https://t.co/z3jFqybpxW pic.twitter.com/tOqCJcslOV
— Office for National Statistics (ONS) (@ONS) November 10, 2020
Average apartment prices in Dubai dropped by 11.4 percent year-on-year in 2020, while villa sales prices saw an annual fall of 5.8 percent, according to property consultancy Chestertons.
“The ongoing economic impact of Covid-19, and a likely reduction in the emirate’s population, both key drivers of Dubai residential prices, are set to hamper market performance,” added Chris Hobden, head of Chestertons MENA.
Great place for young professionals
Schwalje said that “quality of life and global salary arbitrage” continues to put the UAE on the map as a “great place” for young professionals to accelerate their careers.
“Given the youthful demographics, employment in the UAE often involves taking on far more responsibility earlier in your career than comparable positions in other countries,” he said.
The employment rate was down 0.6 percentage points on the previous three months, while unemployment was up 0.7 percentage points.
Economic inactivity (people not in work, looking for work, or starting work in the next month) was unchanged https://t.co/rshIK9TXD7 pic.twitter.com/GGDkMP40qx
— Office for National Statistics (ONS) (@ONS) November 10, 2020
“One year of working in the UAE is equivalent to three to five years elsewhere due to the level of responsibility given very early to employees who prove themselves capable.”
He added that the UAE has a strong business culture of controlled experimentation. “All ideas, no matter how farfetched, are on the table and have a high chance of seeing the light of day,” the expert said.
However, Chris Doyle, director of the London-based Council for Arab-British Understanding, said the new UAE reforms would not lead to an “immediate” jump in British job applications.
“If there are job opportunities in the UAE, I think people in the UK will be looking at them,” Doyle said.
“However, it’s unlikely they are going to do so now… Covid-19 is still ongoing and most people will probably want to be close to their families rather than travelling and living abroad in the very near-term.”
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