Hedge fund managers in the UAE are drawn by new opportunities in Dubai and Abu Dhabi, yet face harsh realities such as job insecurity, high living costs, and limited visa options. Recent criticisms reveal unsettling employment practices, urging relocators to negotiate protective contracts.
Hedge fund managers are increasingly gravitating towards the UAE, particularly Dubai and Abu Dhabi, which are establishing themselves as significant hubs for hedge funds. Dubai is set to launch a dedicated hedge fund building, while Abu Dhabi has designated an entire island for hedge fund activities. However, many portfolio managers are beginning to question the long-term viability of their career choices in the region as challenges arise during the scorching summer months.
The working environment for hedge fund personnel in the UAE is notably precarious. A buy-side consultant expressed frustrations regarding job security, stating, “The lifestyle here can be amazing, but the sector is literally hire and fire.” This sentiment reflects a broader concern, highlighting that the lack of employment protections significantly contrasts with more established financial centers like London. Employers in Dubai have considerable latitude to terminate employees under vague “legitimate reasons,” which further exacerbates worker anxiety.
This volatility was underscored by headhunter Christie Doderer, who publicly criticized a hedge fund for practicing questionable employment methods, indicating that new hires often faced abrupt dismissals without proper justification. Instances of hedge funds in the UAE letting staff go have been notable, including Brevan Howard’s recent upheaval involving Oualid Lahsini, who departed shortly after his hiring.
The rising cost of living compounds the challenges for those working in Dubai. According to a recently dismissed portfolio manager, the lifestyle demands a significant financial outlay, especially with soaring rents in sought-after areas. The difficulty in securing new employment is further complicated by the geographic separation of decision-makers, primarily located in major cities such as New York and London.
Jobseeker visas in the UAE present another hurdle, lasting only 120 days, necessitating a rapid job search or departure from the country. To mitigate such risks, one portfolio manager advises prospective relocators to negotiate a two-year employment contract or request a golden visa, offering extended residency. He candidly remarked, “It’s brutal here,” as the oppressive summer heat looms ahead.
In conclusion, while the UAE presents exciting opportunities for hedge fund professionals, the harsh realities of job security, high living costs, and limited jobseeker visa durations create a challenging environment. Recent criticisms and changes within hedge funds raise significant concerns about the stability of careers in this region. Prospective relocators should be prudent in negotiating terms that protect their interests in such an unpredictable market.
Original Source: www.efinancialcareers.com
