Recession and Employment in the Gulf

Recession and Employment in the Gulf

Saudi Arabia | Kuwait | Qatar | Oman | Bahrain | UAE

RESEARCH

2009

Introduction

? This research study is intended to provide an overview of key employment and recruitment trends in the Gulf region since the start of the international financial crisis, and to give an indication of how the labour market is likely to evolve going forward.

? The study is aimed at corporate decision makers, government authorities as well as professionals employed or interested in working in the region.

? The findings presented in this study are based on a combination of data from GulfTalent's recruitment database, interviews with human resource managers, leading economic sources as well as regional press reports.

1

Contents

? Economic Situation.............................................................. 3 ? Impact on Employment ...................................................7 ? Recruitment Trends......................................................11 ? Compensation Trends................................................... 19 ? Future Outlook............................................................ 25

2

Economic Situation

3

Years of massive growth, fueled by high oil prices, have come to a halt

Crude Oil Price USD per Barrel

150

100

50

0 2001

2003

2005

2007

2009

Source: Dow Jones & Company, Economist Intelligence Unit

GCC Economic Growth 2005 - 2009

6.8%

5.5%

5.6%

6.2%

0.2%

2005

2006

2007

2008 2009 Forecast

4

Gulf economies are still expected to perform better than most others, due to high government spending and low exposure to risky assets

Global GDP Growth 2009 Forecast

China India GCC* ASEAN**

US Eastern Europe

Latin America Western Europe

Russia Japan

-1.9% -2.9% -3.6% -3.7% -4.4% -5.0% -7.0%

0.2%

6.8% 5.5%

Source: Economist Intelligence Unit

* Gulf Cooperation Council, consisting of Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and the UAE

** Association of South East Asian Nations, consisting of Thailand, Indonesia, Singapore, Malaysia, the Philippines, and five other Asian states

5

Qatar continues to enjoy the highest growth rate in the region, thanks to the on-going development of its huge gas reserves

GCC Economic Growth

2009 Forecast

2008 Actual

Qatar Bahrain

Oman Kuwait Saudi Arabia

UAE

3.1% 1.9% -0.7% -1.0% -1.8%

9.6%

13.4 % 6.3 % 6.4 % 8.5 % 4.2 % 7.4 %

Source: Economist Intelligence Unit

6

Impact on Employment

7

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