Challenges Faced by Hedge Fund Managers in the UAE: A Land of…

UAE’s burgeoning hedge fund market attracts managers; however, job security remains tenuous. With recent staff layoffs and high living costs, professionals reconsider relocation amid a challenging employment landscape. Legal protections are minimal, prompting calls for longer contracts or residency visas to enhance security.

In recent years, Dubai and Abu Dhabi have emerged as prime locations for hedge fund managers, with an influx of funds and new office spaces, including a dedicated hedge fund building set to open in Dubai. However, some professionals in these cities are reconsidering their moves as the sweltering summer months approach. Many hedge fund employees express concerns regarding job security, with one consultant commenting on the volatile nature of employment in the sector, noting that individuals can be let go at any moment without warning.

Insiders argue that while staff turnover is common in hedge funds globally, it is particularly pronounced in the UAE, where legal protections for employees are minimal compared to places like London. Employers in Dubai can terminate employees for vague “legitimate reasons” as long as notice compensation is provided, leading to a perception of a “wild west” environment in employment practices. This precarious situation was highlighted by headhunter Christie Doderer, who criticized a hedge fund in Dubai for lacking transparency in their employment policies, causing distress among relocated professionals.

Several hedge funds have recently made significant staff cuts in the UAE, including Brevan Howard, which recently saw its Middle East office leader depart shortly after his hiring. Employees report feeling vulnerable in this uncertain job market, with one manager stating that financial pressures are compounded by the rising cost of living. Many individuals reside in expensive areas, and securing new employment becomes challenging due to the geographical disconnect, with many hiring decision-makers based abroad.

Furthermore, jobseeker visas in the UAE are temporary, lasting only 120 days, which adds to the pressure for hedge fund managers contemplating relocation. Veterans recommend negotiating longer contracts or seeking golden visas, which provide more extended residency periods. As one portfolio manager succinctly summarized the situation, “It’s brutal here,” emphasizing the upcoming summer’s challenges amidst these uncertainties.

The hedge fund sector in the UAE has become a double-edged sword for portfolio managers. While the region presents lucrative opportunities with its burgeoning market, it also harbors significant risks related to job security and high living costs. Prospective movers should exercise caution and aim for employment contracts that offer more stability, while existing employees navigate a volatile work environment as they face both economic and climatic challenges in the region.

Original Source: www.efinancialcareers.com