We hope our clients & candidates are having a great kick-off to 2023; many exciting developments and dynamics are currently happening across the GCC economy and Binding Partnerships are very optimistic about the year ahead.
On a daily basis, our financial recruitment specialists have been asked by our network what we see in the market, not just from a Human Capital perspective but also the economic dynamics. Therefore, today, James Binding, Founder & Managing Director of Binding Partnerships shares some highlights of the regional economy that you may have missed out on.
It was reported that the UAE and Saudi Arabia account for 83.6% of all regional property transactions, equating to US$ 107.8 billion, with Dubai and Abu Dhabi grabbing 48% of the aggregate value over the ten months to October. In that period, the region posted a 21% hike in value. Dubai witnessed a massive 81% surge, attributable to several factors, including solid demand and price gains seen by luxury residential properties and healthy revenues in the affordable segment. Although Dubai posted a 61% hike in transaction numbers, other nations – Saudi Arabia, Kuwait, and Qatar – posted a decline compared to a year earlier. Saudi did top the listing when it came to the average value per transaction – at 35.5% – with Dubai returning a 12.2% increase.
According to data from analytics agency Dsight, more than 16% of Russian companies and entrepreneurs relocated to the UAE in H1 2022, with the most significant inflow of private wealth this year. Russian entrepreneurs, investors, and top-level professionals have arrived in the emirate to settle, which has boosted the local property market. Undoubtedly, Dubai will remain attractive to overseas investors seeking to shield their assets and looking for a haven.
Starting on 01 January 2023, all establishments purchasing alcohol in the emirate will no longer have to pay the 30% municipality tax. Apart from buying their drinks for 30% less, personal liquor licenses will be free for those eligible to purchase alcoholic beverages in Dubai legally. However, a valid Emirates ID for residents or a tourist passport is still required for those applying for a permit. Undoubtedly, this will be a boon for the travel and hospitality sectors as Dubai becomes a more affordable tourism destination.
Starting on New Year’s Day, the country’s ‘Involuntary Loss of Employment Insurance Scheme,’ covering all workers, whether in the private or public sector, came into effect. This social security program will pay anyone, who becomes unemployed, a cash sum for up to three months from the date of an employee’s job loss. It will be calculated at 60% of their basic salary for a maximum monthly payment of US$ 5,450 (AED 20k).
Keep an eye on our blog page as this is the first of many upcoming articles about the GCC financial market. At the same time, don't forget to follow Binding Partnership LinkedIn feed where we share more news, facts, and leadership advice.