Challenges Faced by Hedge Fund Managers in the UAE: Insufficient Job Security and Rising Costs

Hedge fund managers in the UAE find themselves in a challenging employment landscape, characterized by significant turnover and limited job security. Despite the allure of Dubai and Abu Dhabi, many are reconsidering their moves as costs rise and jobseeker visa restrictions add pressure. Experts recommend securing longer contracts to mitigate risks associated with abrupt employment changes.

Hedge fund managers in the United Arab Emirates (UAE) are witnessing a surge in industry activity, particularly in Dubai and Abu Dhabi, where substantial investments have led to the establishment of new offices and developments, including a dedicated hedge fund building in Dubai. However, as the oppressive summer heat approaches, some managers are reconsidering their decisions to relocate to the UAE due to the sector’s harsh employment dynamics.

A buy-side consultant comments on the precarious nature of job security in the region, stating, “The lifestyle here can be amazing, but the sector is literally hire and fire.” The report indicates that while high employee turnover is typical in hedge funds, the situation in the UAE is even more pronounced, with minimal legal protection for employees compared to cities such as London.

UAE labor laws allow for the termination of staff without specific cause, provided that proper notice compensation is issued. One professional in the prime broking sector describes the environment as “a bit of a wild west,” illustrating the volatility present in the job market.

Concerns surrounding employment practices in Dubai have surfaced, as highlighted by headhunter Christie Doderer, who pointed out instances where individuals relocating for positions found themselves unexpectedly dismissed. Despite recent hires, such as Brevan Howard’s Oualid Lahsini, turnover remains high, with Lahsini having left shortly after his appointment.

A recently terminated portfolio manager expressed his struggles in adapting to the higher cost of living in the UAE, particularly in areas like Dubai Hills and Arabian Ranches, where rents are escalating. He indicated that job opportunities are scarce, as key hiring executives are primarily based in major financial centers like New York and London.

Moreover, jobseeker visas in the UAE are limited to a 120-day duration, requiring individuals to exit the country subsequently. A portfolio manager advises prospective candidates to seek two-year contracts or alternative arrangements like a golden visa, which allows for longer stays. He candidly asserts, “It’s brutal here,” particularly with the harsh summer months approaching.

The hedge fund sector in the UAE presents both opportunities and significant challenges for portfolio managers. Despite the allure of Dubai and Abu Dhabi, the lack of job security and the harsh employment practices contribute to an unstable work environment. As the cost of living rises and visa constraints persist, those considering relocation must approach with caution and secure favorable employment terms.

Original Source: www.efinancialcareers.com

About Carmen Mendez

Carmen Mendez is an engaging editor and political journalist with extensive experience. After completing her degree in journalism at Yale University, she worked her way up through the ranks at various major news organizations, holding positions from staff writer to editor. Carmen is skilled at uncovering the nuances of complex political scenarios and is an advocate for transparent journalism.

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