GUEST COMMENT: Why you shouldn't discount working in Saudi
In contrast to the spectacular near-collapse of the Dubai economy, Saudi Arabia's prudent conservative regulation and enormous sovereign fund have enabled the country to weather the storm better than just about any major economy (Saudi Arabia is a member of G20).
While not immune from the global difficulties, it has emerged from a trying 2009 on a strong footing, owing largely to a government policy of stepping up its investments in the economy by drawing on rich pools of foreign assets accumulated during the 2003-8 period of high oil prices and production levels.
Oil prices this year have enabled the country to replenish its store of foreign assets and, if this maintained, will generate a significant 2010 budget surplus. GDP is expected to grow by 3.6%.
Saudi is the biggest player in the Gulf
Dubai is unlikely ever to return to its glory days. There will be gradual growth in Abu Dhabi and, to a lesser extent in Qatar and Kuwait. But, while employment opportunities will increase, these markets are small.
Saudi Arabia has by far the biggest economy and population of the Gulf states. However, the fundamentals of Saudi government policy, society and culture will continue to militate against the country becoming a generally attractive employment destination for western professionals.
There are a number of reasons for this. Firstly, the government's 'Saudisation' policy denies secure, long-term career prospects to expatriates and certain positions are reserved for Saudis. The constraints on lifestyle means the kingdom is perceived as a hardship posting and is therefore an unattractive employment destination to many.
It's also virtually impossible for a single western woman to be permitted to work in the country, other than as a teacher or nurse.
That said, many opportunities remain. Saudi Arabia is a wealthy country striving to develop its young population: it cannot do so without injections of instant expertise and experience from more developed countries.
The opportunities for - particularly - western, non-muslim, expatriates, therefore, lie in senior or specialized positions usually under short-term (up to three years) contracts, heading up a function and bringing on a Saudi successor. The country is 'underbanked', particularly in the retail banking sector and this area has considerable potential for growth.
Investment banking is heating up
One of the biggest challenges Saudi faces is attracting sufficient supplies of investment banking talent, which within the region has traditionally resided in Dubai.
Since Saudi is essentially an emerging market, technical investment banking skills gained in major financial hubs are very desirable, which means Western expertise is still very much in demand.
Although the market is currently fairly underdeveloped, M&A and ECM activity in Saudi is tipped to surge, which means its growth potential is great. This should, in theory, be an attractive prospect for any western banker.
For western muslims the situation is a bit different. They naturally feel more comfortable within the all-pervasive Islamic culture than non-muslims and there are good openings in the areas of, for example, IT. Banks in Saudi are big employers of IT professionals, and it's perfectly possible to continue to develop your careers and return to the west without being disadvantaged.
For all the difficulties of life in Saudi Arabia, I believe there are many advantages. For a start, there's the prospect of generous, tax-free remuneration. The natural beauty of the surrounding countryside is second to none and I've always found the people welcoming and hospitable.
Ian Thomas is an economic analyst and head of international recruitment at Banque Saudi Fransi
