Q1 2024 Legal and Compliance Market Report
Executive Summary
The first quarter of 2024 has showcased a dynamic and evolving landscape within the legal and compliance sector across the GCC, particularly within the UAE and Saudi Arabia. Our report reveals the key trends, including a notable uptick in activity levels, shifts in regional focus, evolving talent demands, and sector-specific developments.
Market Activity: A Vibrant Start to 2024
The beginning of 2024 has been marked by substantial market activity, with a large surge in Abu Dhabi, positioning it as the epicenter of the UAE with over 50% of the UAE's legal and compliance engagements coming from the Capital. This influx underscores Abu Dhabi's newly-found dominance in the region's market dynamics. Conversely, Dubai, while maintaining a busy market, has observed a moderate deceleration in pace primarily due to the volume of multinationals based in the Emirate looking at shrinking rather than expanding.
Talent Landscape: Navigating Regional Nuances
Saudi Arabia has initiated another round of salary increases aimed at bolstering expat attraction amidst ongoing Saudization challenges. The retention of Saudi talent remains a critical hurdle, with a tenure average lingering between 1-2 years, underscoring the need for enhanced retention strategies beyond simply paying the highest salary (which is in itself a constantly changing mark).
Evolving Role Profiles: A Shift Towards Leadership
2024 has witnessed a pivotal shift towards more senior roles within the legal and compliance domain, signifying a maturation of market needs. The demand now predominantly focuses on individuals boasting 8-12 years of experience, reflecting a market appetite for up-and-coming talent, seasoned leadership and strategic oversight.
Sectoral Dynamics: Diverse Growth Trajectories
The construction and real estate sectors have reignited, signaling a resurgence in foundational economic activities after both the UAE and Saudi Arabia indicated a strong desire to increase population. Banking is progressing towards increased activity, potentially setting the stage for a robust financial services landscape in Q2/Q3. The oil & gas sector, while still active, is observing a tempering of momentum, with a shifted focus towards renewable and sustainable energy.
Compensation Trends: Aligning with Economic Indices
The quarter concluded with the disbursement of bonuses, averaging 20%, alongside a moderate annual salary increment ranging between 3-5%. These adjustments are in-line with general inflation, ensuring competitive compensation packages that align with both market and economic conditions, but do not compete with the average 20% increase employees get when moving into a new role.
Conclusion
Q1 2024 has laid a robust foundation for the year, characterized by dynamic market activity, strategic geographic realignments, an upward trend in seniority within the talent pool, and sector-specific developments. As we navigate through the remaining quarters, a continued focus on strategic talent acquisition, retention, and market adaptation will be paramount in sustaining growth and leveraging emerging opportunities within the legal and compliance landscape.