There is now tentative evidence that the demand for internal auditors is improving. This is particularly the case in Abu Dhabi and Qatar where companies were less exposed and better insulated against the worst effects of the global recession. However, the once vibrant recruitment market in Dubai still remains effectively closed. To many observers Dubai remains a paradigm to the excesses of the credit boom, whilst Abu Dhabi and Qatar have taken a more conservative approach to their development.
There are immense contrasts in the quality of internal audit functions across the region. While there are good quality functions, more generally internal auditing lags behind western standards. Before the recession there were many initiatives across the region to improve internal audit departments and corporate governance. Although many of these initiatives have stalled, the focus for improving control and transparency will ultimately have been given greater urgency. The economic crisis as in other parts of the world has exposed the need for effective regulation and corporate governance. In the GCC a number of frauds and financial crimes have been exposed. Most recently the predicaments of the Algosaibi and the Saad groups will serve as a further stimulus.
Governments, most notably the UAE, have already taken major steps to improve corporate governance and internal audit functions are being scrutinised to ensure that they have the capability to provide the quality of work required to give confidence in the control system.
The demand for high calibre auditors with specialist knowledge of risk and industry sectors will increase significantly. There will be pressure to develop an indigenous skill base to meet demand, however, realistically this is some years away. The region will most likely continue to employ expatriate audit professionals in increasing numbers. |
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