As companies are taking a deep plunge into layoffs, UAE's tech sector is holding the beacon for techies

The very first thing that comes to mind when you think of Big-tech would be lay-offs. No wonder, given the massive layoffs that are making big news, the big-tech sector has become synonymous with layoffs. What if we say there is still hope left? UAE is hiring and it is one place ranked in the top for work life balance. As companies are taking a deep plunge into the layoff abyss, UAE's tech sector is holding the beacon for tech aspirants. This is all because new projects and international investments, particularly in the post-pandemic world, have boosted the economy. A Middle East Job Index Survey by Bayt.com and YouGov conducted to assess job availability shows approximately 7 out of 10 UAE firms, ie., 70% want to hire new staff next year. Around 50% of companies want to hire in the first three months of 2023.

Though the report stated that Sales Executives, Accountants, and Administrative Assistants would be among the roles that UAE would be hiring for the next year, IT, pharmaceuticals, and engineering would top the hiring process. Talking to Gulf News, Wilson Xavier, Senior Research Director of Services at IDC said, "Here, we are probably seeing a different picture on the horizon, one that characterizes optimism with an element of caution as we enter 2023". According to what he said to the news portal, IT spending in Gulf will reach 5.2% CAGR by 2026, resulting from last year's outlays. The added funding would apparently take the impact of the incoming recession. Further, it is going to create a shortage of tech talent in the fields like Cloud, security, Big Data, AI, etc. It is reported that, in 2022, UAE startups including those in Saudi Arabia have got record-level funding. For eg., Banayat AI, an Abu Dhabi-based geo-location data firm got a whopping Dh57.5 billion for its IPO. With billions of oil money waiting to be pumped, startups become attractive avenues for massive funding in addition to big tech companies in UAE.

Way back in August, UAE's Minister of State for Entrepreneurship and SMEs announced implementing a $272 million private equity fund to support UAE startups and SMEs. This policy decision is to create at least 20 Unicorn companies by 2031. Shailesh Dash, a Dubai-based financier, and entrepreneur opine UAE has the right kind of infrastructure needed to support startups in the region.

Does that mean big-tech layoffs would have zero impact on UAE's hiring scenario? Experts consider layoffs as a US-centric phenomenon. Joshua Warner, a Stone X Group analyst says, "The layoffs announced by Big Tech should be treated with caution. For now, this is more a rebalancing act as Big Tech looks to shed excess staff in some areas while still hiring in key areas."