It's been a tough year for UAE banks, but some job opportunities remain

As the latest crop of Q3 results demonstrate, UAE banks' profits continue to be weighed down by provisions against bad loan losses and shrinking demand from retail customers. The result is that hiring has largely been on the back burner, but certain hot areas remain.

There's a general lack of transparency when it comes to headcount within GCC banks, with most revealing staff numbers in their annual reports but keeping it under wraps on a quarterly basis.

There are exceptions, of course, such as Mashreq Bank, which revealed that it has taken on just 13 trainees this year, having cut 175 employees in 2009.

Generally, though, it's therefore difficult to discern how much hiring has been going on, but according to banking analysts, recruitment has generally been muted.

"All UAE banks are controlling costs," Nancy Fahmy, an analyst at Beltone Financial told The National. "No bank has increased hiring."

While 2009 was all about trimming headcount, most UAE banks have been happy to tread water with regards to staff numbers this year, says Peter Greaves, director, head of financial markets at headhunters McArthur Murray.

"There remains a huge stigma attached to redundancy within regional banks," he says. "In 2009, a lot of this went on under the radar, whereas this year staff numbers have generally remained stable. Exposure to Dubai World, the real estate crash and increased loan impairments have all hit profitability in local banks this year."

So, traditional mainstays such as commercial and retail banking may have been much quieter areas of recruitment within local firms this year, but there's still a desire to build in other areas, suggests Claire Swann, senior consultant at recruiters Hudson in Dubai.

"Banks in the UAE have been recruiting for their priority and private banking functions, although demand is centred on people with a proven track record and an established client book," she says. "As banks are dealing with a lot of underwater loans, we're also seeing an increased requirement from banks to recruit those with debt restructuring experience."

At this point in the year, UAE banks are also scrambling to meet their localisation quotas. The result is that experienced Emiratis are being courted across various business functions.

"Emiratisation is the number one priority for local banks, and this applies across all levels," says Greaves. "There remains a shortage of local candidates, so anyone with a decent amount of experience under their belt will always be in demand."

The other (slight) positive for UAE banks is that the final quarter is likely to see improved performance. According to a research note from Global Investment House, the easing of Dubai World's debt problems in October means that banks' provisions against this will reduce in Q4.