Business English: How Adia makes a play for a native minority

On the 23rd floor of a gleaming new building that dominates Abu Dhabi's corniche, Noura Qubaisi is getting to grips with the intricacies of equity trading. Six floors above her, Khadem al-Rumaithi is keeping an eye on investment opportunities in infrastructure. Both are oozing enthusiasm as they start out in careers in the investment field. In other parts of the world, such optimism could be deemed misplaced, given the dire state of the financial services industry. But the two young Emiratis know they are on to a safe bet - both have secured jobs at the Abu Dhabi Investment Authority (Adia). Not only is Adia the world's largest sovereign wealth fund - estimates of its size range from $450bn upwards - but it has also garnered a reputation as an incubator for the emirate's sharpest minds. Many alumni go on to top roles in government or other state entities.

Yet it has had to adopt a rigorous approach to recruitment. Adia's office is home to more than 1,000 people from 40 countries. Just under a third are Emiratis as a result of the small pool of talent available in the United Arab Emirates, which has an indigenous population of about 1m, while Abu Dhabi, the capital, is home to some 420,000 nationals. The availability of skilled human resources is an issue throughout the oil-rich Gulf. Recruiting nationals has become an increasingly competitive task - even for Abu Dhabi's best-known brand - as more state and private companies seek to lure Emiratis into their fold. Yet, while global investment entities are shrinking, Adia is continuing its trend of expansion, with a recruitment programme introduced this year to ensure it has a ready pipeline of local talent. Under the programme, the fund, which has traditionally sponsored Emiratis through university, is identifying and targeting students in their last year of high school who will then be sponsored through university. The idea, officials say, is to supplement existing recruitment processes and create a pool of talent that will be available in four or five years. Attracting the best "The challenge is now so many organisations are fighting for them," says Mohamed Hajeri, head of recruitment. "That's a healthy situation, of course, because it puts pressure on all of us to prove that we offer an attractive place to work, learn new skills and build a long term career." In its first year, the high school recruitment programme attracted about 400 applicants, who were whittled down until 18 were chosen. All have gone on to pursue university studies in the US, with Adia - which spends about $10m annually on training - footing the bills. Historically, Adia has relied on being able to identify top graduates at universities at home or abroad and the several hundred walk-in applications it would receive each year such as Ms Qubaisi, 23, who graduated with a finance and accounting degree from a local university, and Mr Rumaithi, 27, who studied biochemistry at Indiana University. On average, two Emiratis are interviewed each week.

Adia also has a constant stream of applications from expatriates, the number of which has tripled in the past year as the global financial crisis has deepened and its prominence has grown with western bankers hammering at SWFs' doors for financial backing. Mr Hajeri, who received an Adia scholarship to study at a US university, describes recruitment as one of Adia's highest priorities, adding that the fund's recruitment process has become increasingly rigorous in recent years to make it more targeted. But, while having Emiratis in the workforce is considered important to the culture and identity of Adia, the fund still relies heavily on expatriate workers. Last year, it took on more than 100 new staff, about a quarter of whom were Emiratis, and it is projected to recruit a similar number this year, while its attrition rate is just 6 per cent. Still, Adia is not immune to the global turmoil. About 80 per cent of the portfolio is externally managed, including 60 per cent that is passively managed through indexed tracker funds. And as markets have taken a battering across the globe, experts say Adia has not been spared. The difference is that Adia is a long-term investor that is diversified across assets, officials say, and has the security of a pipeline of funding from Abu Dhabi's oil wealth. Reassuring job security "Adia is not the kind of company that would be suddenly shedding employees in a short-term reaction to a downturn in the market and then frantically re-recruiting again by the time the cycle ticks around," says Simon Pannell, an Australian occupational psychologist who joined in 2002 to bring a more scientific approach to the selection process. The enthusiasm of Ms Qubaisi and Mr Rumaithi has certainly not been quenched. He was a relatively late starter. After studying biochemistry, he worked with the health authority but found that life too mundane and embarked on an MBA course. A friend introduced him to the sovereign wealth fund. "For me myself, I'm crazy about investing," Mr Rumaithi says. "Seeing an opportunity, doing the due diligence and then getting a reward from an investment... that's what got me thinking more about Adia." Ms Qubaisi took a more direct path, joining the recruitment process straight after graduating. Dressed in a black abiya, she exudes a quiet confidence as she describes surviving six interviews, two assessments and a tough psychometric test. And in a sign of the growing confidence of many young Arab women, she says she will pursue her career even after she is married. "I didn't choose finance or Adia just like this: I had a goal, so I have a right to pursue my goal."