Strong economy woos professionals from West to UAE

A shortage of skilled manpower in the GCC construction industry is attracting civil engineers and architects from countries where unemployment is growing due to the economic slowdown.

The arrival of skilled professionals from the US, UK, Canada and Australia represents a major turnaround as firms in the region were previously chasing too few candidates.

Emirates Business spoke to industry experts who all felt that the economic slowdown of the global economy would stand to benefit the UAE's construction industry.

The problems faced by the US housing market is creating unemployment, with the construction industry releasing a higher percentage of employees than other sectors.

Between July and August large US construction firms including KB Home, Toll Brothers, Hovnanian and Lennar have axed 8,000 jobs.

"A year ago it was difficult to recruit good experienced engineers," said Stewart Corner, consultant Engineer working for Australian company Webb & Erbas UAE, which has formed a joint venture with an Abu Dhabi investor to expand in the region.

"More and better specialists are available in the market. The job market has changed and salary levels are coming down. An experienced Australian engineer can earn $100,000 (Dh367,319) a year in the UAE now, two-thirds of the salary he would have earned at home. Corner said the property developments in cities such as Abu Dhabi are sustainable because of good oil revenues and government support to big projects.

"We expect to grow by 50 per cent in the first year. Several Australian companies are entering the UAE and other Gulf countries now," he said.

According to Natasha Gangaramani, Director of Al Fara'a Properties the number of applications from UK and the US has increased over the last two weeks.

"It has been a challenge to recruit good staff but during the last two weeks we have been getting calls from good talent in the UK. If I am not mistaken, the trend will not just be limited to the construction and property market. Job applicants to all other sectors will increase and more people will be looking for opportunities here," said Gangaramani.

She said that global businesses will be looking towards the region and especially the UAE to do well. "People are expecting this region to do well and overcome the crisis. It is tax free and a launch pad for people who want to start fresh," said Gangaramani.

Carol Milne, a consultant at the Ontario Ministry of International Trade and Investment's GCC office, said several Canadian companies were looking for opportunities in the Middle East.

"Property prices are dropping in the US and in some parts of Canada," she said. "In Ontario, the market is stable but it is not growing as it did before. Our construction firms are very international in outlook and the province has cross-border trade and investment links with the US."

William Buck, International Director, Macdonald and Company, a recruitment consultancy, said: "In the past it was a challenge to recruit candidates from the US. But our recruitment agency has been receiving a lot of calls from the US ever since the economy started to slide."

According to Buck, there is still much demand for qualified and good development surveyors and project managers in the UAE. "There is a lot of scope for facility management professionals. Just about 12 to 18 months ago nobody had bothered much about facility management as it was not much in demand here," said Buck.

According to him, there is movement of labour within the UAE itself as more professionals are opting for Dubai compared to other emirates.

According to him because of the availability of all sorts of candidates coming in to the market, other GCC nations like Bahrain, Saudi and Kuwait have been able to attract candidates. It is good news all round for property and construction companies in the region."

Marc Palermo, Regional Sales Director working of US real estate company SHVO, said: "More and more professionals from the US are coming to the Gulf in search of jobs.

"US firms are releasing even experienced senior staff. Growing unemployment in the US and better living standards here are among the factors that are attracting construction professionals to the Gulf."

Khalid Said, a Palestinian architect had been living in Germany, said he has come to the UAE seeking new opportunities. "A number of German engineers and architects are leaving because there is an economic slowdown and only large firms that are capable of undertaking major turnkey projects can get work. "The Middle East is a good option for me because I can speak Arabic and German."

Thomas Brink, Vice-President of US-based engineering firm RTKL, said the company had stopped recruiting and was relocating staff to the Midle East.

"Due to the slowdown in the US, work on some of the anticipated projects there and in China did not start," he said. "Our company is based in Texas, which has a strong economy because of oil. However we have seen some senior US professionals seeking better prospects in the UAE."

But Phil Starr, Recruitment Director at RealHR Consultancy and Recruitment has warned that although well qualified, applicants from these particular regions would still lack the project experience required for the projects found in Dubai and Asia alike.

"We have seen a definite increase in the number of CVs coming from the UK and US. The most noticeable change will be at a supervisory level and below. It's likely we will start to see a shift towards the eastern European labour market due to the decline in the construction industry throughout the UK and the rest of Europe," said Starr.

Macdonald's Buck also noted that the new rush of employees into the UAE and GCC market looking to get hold of jobs at any cost would have an impact on salaries.

Although salaries across the GCC, especially in the UAE, have been rising significantly over the last few years, the trend will not continue at the same level.

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