A new study released by recruitment firm Robert Half has highlighted that UAE employers know that many expatriates flocking to the UAE are immigrating without a job in hand and are ready to settle with lower pay.

In the past, many people would come to the UAE on short-term visit visas, typically lasting three months, hoping to find better opportunities in the Emirates. Those who were fortunate enough to secure a job were then granted an employment visa. However, those who could not find work would either return to their home countries or accept jobs with lower salaries.

In October 2022, the UAE introduced a new “job exploration visa” among various other entry permit options. This was done to allow people to come to the country and search for job opportunities, as the UAE’s economy was growing at a remarkable pace and creating jobs across a diverse range of sectors, Khaleej Times reported.

“The UAE has a lot to offer candidates with good weather, tax-free earnings, and a multicultural lifestyle, which is bringing a lot of expats over in the expectation that they will be able to find a job easily when they arrive,” Robert Half director Gareth El Mettouri said.

Large pay cuts

Global recruitment consultancies report that the availability of expatriate workers is making it easier for UAE employers to hire. Over half (52%) of employers say they are now receiving more job applications per role than they were a year ago.

With the hiring market favoring businesses, leaders are benefiting from the influx of expat workers. Two in five (43%) employers say it is taking less time to fill roles, as the candidates are immediately available. Additionally, one-third of employers state that unemployed expats are willing to accept significant pay cuts in order to secure a position.

Gareth El Mettouri explains that due to the large number of expats, “competition for jobs is fierce, and many are having to settle for lower salaries or take the first role offered to them to stay, putting businesses in a strong position.”

Opulent Job market but hiring challenges

While employers in the UAE are finding it easier to hire overall due to the influx of expat workers, many still struggle to find candidates with the necessary skills. According to a study by global recruitment firm Robert Half, around 71% of UAE hiring managers agree that it has become easier to attract workers to their organizations over the past 12 months. This is largely attributed to a notable increase in expats coming to the UAE, with half of employers claiming many of these expats are immigrating without having a job secured.

The UAE has experienced a massive influx of foreign workers over the past three-and-a-half years, driven by the country’s significant macroeconomic growth across various sectors. This is reflected in Dubai’s population, which rose by nearly 300,000 from 3.4 million on January 1, 2021 to 3.7 million on June 25, 2024, primarily due to people coming to the UAE in search of better opportunities.

Employers searching

While the UAE has seen a significant influx of expat workers, this does not necessarily mean employers are finding candidates with the necessary skills. According to a study by global recruitment firm Robert Half, around 71% of UAE hiring managers agree that it has become easier to attract workers to their organizations over the past 12 months. This is partly attributed to the notable increase in expats coming to the UAE, with half of employers claiming many of these expats are immigrating without having a secured job.

However, Gareth El Mettouri, from the recruitment firm, explains that “Many organizations are still struggling to find the skills they need to succeed in the current economy. Highly skilled talent – particularly with experience in the UAE market – can command higher salaries, and many businesses are opting for the cheaper option only to end up back where they started when their new hires do not work out. It is important that business leaders weigh up the importance of the skills they need against the cost, or they could find their growth impeded by a lack of talent.”

72% employer to hire

According to the Robert Half study, a significant majority of UAE employers, around 72%, plan to make new hires in the next six months. This hiring activity is being driven by the strong performance of the UAE economy, with half of employers citing this as the primary reason for their plans to bring on new team members.

Additionally, around 30% of employers are looking to fill vacant roles or address understaffing issues that are hampering the business’s ability to achieve its goals.

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