GCC pay is best in world for senior execs

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Saudi Arabia and the UAE have the highest disposable incomes in the world.

Saudi Arabia and the UAE are providing senior managers with the highest disposable incomes in the world, according to research by management consultancy Hay Group.

The World Pay Report examines not only the salaries and benefits for executives, but also compares the cost of living and taxation system in each country to come up with a figure for disposable incomes.

Saudi Arabia came first in the list with average disposable incomes for managers of $229,325 per year. The UAE came second with disposable incomes of $223,939.

In comparison, the United States came 24^th with management incomes of less than half those in the Gulf States at $104,905. India came 36^th with incomes of $92,750, and the UK came 40^th with incomes of $86,367.

"Senior managers in Saudi and the UAE enjoy soaring levels of take-home pay, as employers in this region pay more attention to salaries rather than performance-based incentives," said Vijay Gandhi, Reward Information Services Manager for Hay Group Dubai.

"As demand for experienced senior managers remains high, however, companies in the region are looking more closely at the use of long-term incentives as a way of attracting and retaining international talent."

Tax-free incomes considerably boost the disposable income levels in the oil-rich states, the report added.

But while the wealth of senior managers is soaring in the Gulf, lower income groups are suffering lower than inflation pay rises, according to Hay Group.

A Hay Group report in March entitled Global Pay Day Analysis, found that the UAE had the worst salary rises after inflation in the world for administrative and professional workers. Pay rises of 5% were recorded across all pay grades, but with inflation taken into account, salaries in the UAE actually fell by 2.3%.

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READERS' COMMENTS

Salary Rules
Posted by The Thinker, Dubai, UAE on Monday 23 July 2007 at 17:00 UAE time

There should be global regional committee setting laws that decide salaries like the stock market and oil prices. This committee should take into account the following points and more to ensure a fair salary system : a) Inflation Index for a country b) Work demands set by the country's growth and disseminated to various businesses and in turn on the employees of these businesses c) Employee Salaries should change monthly based on the exchange rate i.e. the salary stays at the minimum officially agreed upon and increases at the end of the month if there is a fall in exchange rate and increase in Cost of living. d) Cost of living takes into account the following factors - increasing rents, food prices, transport prices, etc. e) Housing allowances should increase monthly as an average based on the rent increases that happen on a daily basis f) Salaries should be based on the increasing profit of the companies. This revision should be done on a monthly basis. g) etcetra Sounds nice to read and wish. If wishes were horses, beggars would be kings.

GCC pay is best in world for senior execs
Posted by Mohammad Saif, Dubai, UAE on Sunday 22 July 2007 at 08:00 UAE time


The UAE came second with disposable incomes of $223,939. – that means AED68,765/- Per Month. I wonder how many people actually get this.

GCC pay is best in world for senior execs
Posted by shashi mohan, Ras Al Khaimah, UAE on Thursday 19 July 2007 at 11:00 UAE time

You have definitely not considered the falling Dirham rates. You must have to note that most of the human resources in UAE are expatriates from India.

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