Hedge fund managers relocating to the UAE are facing significant job insecurity amid a high turnover environment. While new developments in Dubai and Abu Dhabi have attracted funds, employment protections are minimal. Reports of dubious practices and rising living costs contribute to a challenging relocation experience, prompting advice for securing extended contracts or golden visas.
Dubai and Abu Dhabi have emerged as significant hubs for hedge fund managers, attracting them with new offices and developments, such as a dedicated hedge fund building set to open in Dubai and an entire hedge fund island in Abu Dhabi. However, some portfolio managers are reconsidering their decisions to relocate as the harsh summer months approach.
A buy-side consultant remarked on the precarious nature of the job market, stating that while the lifestyle in the UAE can be appealing, job security is severely lacking. “The sector is literally hire and fire,” he noted, indicating that employees may find themselves dismissed with little warning.
Compared to other financial hubs like London, the UAE has minimal employment protections, allowing employers to terminate staff for undefined reasons, provided they offer notice period compensation. A prime broking professional characterized the environment as “a bit of a wild west.”
Concerns about employment practices in the region were echoed by headhunter Christie Doderer, who accused a Hedge Fund of engaging in dubious hiring practices. She described unsettling situations wherein employees relocate to Dubai only to find themselves unexpectedly dismissed without proper justification.
Several funds have reportedly reduced staff within the UAE market, including Brevan Howard, which experienced a leadership change shortly after hiring Oualid Lahsini. The uncertainties faced by individuals in this rapidly changing environment were encapsulated by one portfolio manager’s statement of being left “high and dry” following a dismissal, compounded by high living costs.
The challenge of securing a new position is exacerbated by the geographic dispersal of decision-makers, most of whom operate from locations such as New York, London, or Singapore. Jobseekers face strict limitations on visa duration in the UAE; UAE jobseeker visas are valid for only 120 days, necessitating immediate departure thereafter. A former manager urged potential applicants to secure a two-year contract or a more stable golden visa, which confers longer residency. “It’s brutal here,” he expressed, with the impending summer adding to the anxiety of the situation.
The allure of hedge funds in the UAE is juxtaposed with significant employment insecurity, as many professionals confront a volatile job market characterized by rapid turnover. Despite the attractive lifestyle and new developments, the lack of job security and high living costs pose considerable challenges. Industry insiders advise potential applicants to seek long-term contracts to mitigate these risks, particularly with the difficulties anticipated over the summer months.
Original Source: www.efinancialcareers.com
