ArabianBusiness.com - Middle East Business News Sunday, 20 July 2008 | 04:08 UAE time
Salaries fall as inflation rises
Tuesday, 19 February 2008


Record inflation across the region outpaced the salaries of more than half of Gulf employees in 2007, according to findings from this year's ArabianBusiness.com Salary Survey.

The number of respondents to the survey from across the GCC that stated they saw a decline in their real wage after factoring in inflation was more than three times larger than those who said that their real pay had risen (16%).

Oman, where inflation recently hit a high of 7.6% last year, faired the poorest of GCC states when it came to salary reviews.

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The survey indicated only 14% of employees in Oman enjoyed a real salary increase during 2007, while close to one in three people said their salary had fallen as a result of inflation.

Employees in Oman have the smallest salaries of the six GCC nations according to the ArabianBusiness.com survey.

Kuwait, which depegged its dinar from the fledgling US dollar in May of last year, kept inflation in check at 6% last year. Despite that 45% of those polled still believed their salary fell in value in real terms.

Approximately one-fifth of Kuwait's participants in the survey indicated their pay had risen relative to inflation over the same period while one-third believed it had remained the same.

On the whole, the results were worse for expatriate workers in the Gulf than for nationals. In an effort to offset soaring inflation many governments around the GCC awarded generous raises to employees in their public sectors, typically populated by locals.

Even so, many nationals still felt short-changed after adjusting their salaries for inflation. In the UAE, 43% of respondents indigenous to the country still believed their real wages had diminished while the majority of nationals in Bahrain, Saudi and Oman all indicated a fall in real wages (63%, 56% and 61% respectively).
Subcontinent workers fared worse, however. Bangladeshi workers across the Gulf faired the poorest in terms of real salary with three-quarters of all respondents indicating a fall in real wages.

More than half of Indian expatriates working in the UAE saw their real wages diminish during 2007, outnumbering those who saw their salaries rise by more than four to one.

Surprisingly Qatari salaries remained the least effected, despite having the highest inflation in the Gulf at 14%.

Only 20% of respondents from the country said their real wages had shrunk during the past year. Over two-thirds - 70% - of respondents from the country believed their wages had remained in line with their record inflation.

When broken down by industry, the fields of aviation, broadcast and education services were the hardest hit.

Less than one in ten respondents working in education services or aviation believed their wages to be rising against inflation, while two thirds claimed they had fallen.

Those working in the legal field faired far better than any other industry when it came to a pay increase, although one in three still believed their real wages had been eroded last year. The legal profession is also the best paid industry in the region, according to the survey's findings.

Average inflation for the GCC region was estimated to be around 8% for 2007.

If you live and work in the GCC and did not see your pay rise by at least that much last year, your salary declined in terms of purchasing power.

More specifically, if you did not receive a pay rise of 9.3% in the UAE, 6% in Saudi, 14% in Qatar, 4.9% in Bahrain or 7.6% in Oman - your salary was effectively cut.

Get interactive: Why do people want to leave their job?

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Comments (78)

I would like to know if there are research positions in Kuwait, Dubia...
Posted by Dr. Nabil Naouli, wilmington, USA on 14 July 2008 at 20:00 UAE time

They are research companies in USA that are being sold in stock market. I think this is a good oportunity for arab nation to buy this companies and move the main office in Kuwait or Dubia.

Instead of buying bank and hotel, they should buy companies that have more than 100 years of research Like Hercules, Du Pont, and so forth.
Salary Scale-Commercial Manager
Posted by AndrewCheh, Manama, Kingdom of Bahrain on 12 July 2008 at 09:52 UAE time

The positions as posted in your salary survey is limited and seems have not been updated to include for other important positions.
For example-Commercial Manager scale is not included in your itenary for cross-checking. Only Quantity Surveyor is listed which is closest to Commercial Manager but certainly would not suffice.
Pls look into updating other managerial positons in line with market requirements-so proper cross reference could be accurately made.
Salary for Quantity Surveyors
Posted by Dries Willemse, Dubai, UAE on 9 July 2008 at 09:25 UAE time

Your Salary calculator does not indicate depth and breadth in a particular position i.e the average yearly salary for a Quantity Surveyor is indicated as $71,083. The QS market consist of working students, junior quantity surveyors, quantity surveyors, senior quantity surveyors, principal quantity surveyors, managing quantity surveyors, directors and managing directors in the quantity surveying profession. There is also distinction between Quantity surveyors working for Contractors and those working for professional Consulting firms. All these are on vastly different remuneration packages ranging from $9,000 to $700,000 per annum. This makes your Salary Calculator obsolute as it shows only an average of all those positions.
Salary Survey 2008
Posted by Anees Ahmed, Jeddah, Saudi Arabia on 8 July 2008 at 15:10 UAE time

A great job. What a fantastic set of information. A whole bunch of very smart people at Arabian Business.
Please accept my whole hearted facilitation for a remarkable job and presentation
Bravo
keep it up
Salary Survey 2008
Posted by Anees Ahmed, Jeddah, Saudi Arabia on 8 July 2008 at 15:09 UAE time

A great job. What a fantastic set of information. A whole bunch of very smart people at Arabian Business.
Please accept my whole hearted facilitation for a remarkable job and presentation
Bravo
keep it up
Prolific Info
Posted by Mir Amjad Ali Khan, Abu Dhabi, U.A.E on 6 July 2008 at 12:01 UAE time

Concerned department,

Arabian business.com is doing a good job in providing latest information about business, jobs, salaries and other surveys to its readers. I appreciate the efforts which are carried out by Arabian business.com team.
Good work
Posted by Abdul Ghani, kw, kuwait on 1 July 2008 at 18:23 UAE time

Dear Editors,

This is an excellent tool i ever found in GCC, keep the good work .... and it has help me guage my salary and position in the company specially with the comparision with other nationals.
Salary survey
Posted by Henrik Kjeldsen on 29 June 2008 at 23:42 UAE time

Very interesting in current volatile market
SALARY SURVEY 2008
Posted by Neil, Dubai, UAE on 26 June 2008 at 14:02 UAE time

BRILLIANT! Really well thought out, comprehensive & excellently presented! Very unique!
Excellent stats, very useful and realistic
Posted by Rahmathullah, ABU DHABI, UAE on 26 June 2008 at 12:38 UAE time

Its done quite wisely & very useful
salary
Posted by daryoush, kualalumpur, malaysia on 25 June 2008 at 19:29 UAE time

I appreciate this website. It's very helpful.
Inflation compared to job packages
Posted by Concerned, Dubai on 18 June 2008 at 13:01 UAE time

The cost of living in the UAE has become so competitive in the present day which makes it wonder whether there is room for considering with the remuneration packages paid to workers to balance the lifestyle. Everything just seems to be doubling up in price but the salaries in most companies remain the same. The thing about the accommodation situation for expats is sad. Its only the hotel industries in the UAE providing accommodation for their staff but the salary packages are really outstandingly low whereby in an average administration role, an individual gets paid AED 6000 including Basic salary, accommodation, travel + food. On the other hand, a simple studio is worth AED 5000 and above depending on location. How is any one person supposed to survive with this type of earning. People earn money to put it right back into the country on their pay day itself leaving them penniless throughout the month. Is this life we should promote in Dubai.
salaries in health care
Posted by oliver, abu dhabi, UAE on 17 June 2008 at 07:24 UAE time

According to your salary scale I should earn nearly triple of what I earn now only to hit the median... why is the UAE not considering health care as a basic need and are willing to pay highly educated professionals according to their skills? I wonder where doctors earn the salary you mentioned?! The reality is completely different! We as health professionals even have to pay the rise of the housing rent from our own pocket, so even looking at the total package doesn't reflect what you really keep in your pockets... It is time to leave, this country will lose its highly educated professionals if they don't open their eyes and start changing things.
Accuracy
Posted by Seb, Dubai on 15 June 2008 at 15:18 UAE time

Comparing a basic salary is not useful at all.
At the end of the day, what does count is your total package including housing mainly.

A housing allowance $ is a $!
Number of respondents
Posted by Gene Bryant on 11 June 2008 at 09:33 UAE time

The survey should also include the number of respondents. This would give everyone a better meaning of the stats ... average, percentiles, etc.
Thnks for Best Service
Posted by hamza, Riyadh, Saudi Arabia on 9 June 2008 at 16:56 UAE time

I search your site on daily bases your site is indeed a unique, your service in indeed the best.
Thanks
Biased on Nationality
Posted by jolls on 5 June 2008 at 16:53 UAE time

This survey has a bias on the nationality. As stated, "NO DISCRIMINATION PLEASE"!!!!
How much are you worth?
Posted by Hombil, Muscat, Oman on 4 June 2008 at 16:38 UAE time

I took the survey and the result showed that I was grossly overpaid! However, I find that amongst the people I know who are working in similar position, I earn moderately. I think your survey puts a lot of leverage on nationality. Remove nationality from the survey and then I would like to know how much I am worth, comparing apples for apples, without their country of origin!
survey
Posted by pelagia, abu dhabi, united arab emirates on 3 June 2008 at 16:18 UAE time

i agree with the comment (#59). a lot of my filipino friends working as admin staff earn more than $20,000 a year. most of the time the performance level is not as important to receive a good salary, it all depends on the company your are employed in.
Salary calculator
Posted by kris zawisza, Dubai, UAE on 3 June 2008 at 10:46 UAE time

Dear Sir/madam,
Your calculator only focuses on nationality, it does not take into account qualifications, years of experience and a number of other factors, which makes me wonder just how accurate it could be.

Anyway I wish you luck with your survey.
SALARY SURVEY
Posted by UNNIKRISHNAN NAIR, dubai, UAE on 3 June 2008 at 08:52 UAE time

If the govt. of UAE is really interested to improve the salary of thousands of people working for the development of their nation, the govt. has to intervene very actively and strictly to ensure that the companies are paying well and on time. Inspite of the govt's directive most of the companies are not paying their salaries on a monthly basis, i.e, payment is making after three to 4 months. Govt. should take appropriate steps to prevent inflation and obviously none of the commodities increased price will never going to reduce by any trader / supplier etc. even when the inflation rate comes down.
salaries
Posted by john, pleasant hill, USA on 30 May 2008 at 19:59 UAE time

The salary indicated above for achitects, Italians, per the search estimate seems a bit low. Is that for minimum experience? How about benefits? Is housing a part of the salary?Car allowance? It may be deceiving, however if some of the above are not included, then it is a great salary. Thank you. It is good to know that there is still someone out their that cares.

Editor's reply Yes, this will be basic, and there can be various allowances on top - the exact nature of which will depend upon the employer.
salary survey 2008
Posted by bobby, Dubai, United Arab Emirates on 29 May 2008 at 07:41 UAE time

your survey has put things in perspective for me
Quantity Surveyor
Posted by Uma, Dubai, UAE on 27 May 2008 at 12:20 UAE time

This calculator is really so good. It is giving the forecast of salary
Housing
Posted by genna, Hong Kong, Hong Kong on 26 May 2008 at 02:59 UAE time

It amazes me that the housing market appears to have a excess of available and planned properties selling for 3M up. The planning seems to have been a strategy for only the wealthy. As an expat professional attracted to the UAE for a work offer I was also looking at making an investment in this country in a "middle high or middle class" valued flat ( 800K-1.5M). But, after extensive search online and in discussions with agents, I have found little if any suitable housing for a two child + 1 grandparent family. Those that fall around one million are not worth buying because they are small ( 750-1200 sq ft). For the same value I can purchase excellent pieces of land with incredibly beautiful landscaping and large square footage in such places I also have expatriate owned residences in ( New Zealand, America( Nevada, Alabama), Singapore, Hong Kong). Should I choose to relocate for work to UAE I will rent a villa instead of investing my employers and my money in a very small "boxy' flat.
So, the landlord gets the money. Thankfully there are a few decent places to rent that are appropriate for a family, otherwise I would not at all be considering my move. A CHIEF STRATEGY OFFICER should have been hired to help Dubai think through the migration.expatriate behavioural needs of foreign buyers coming to work in the country (for the long term benefit ).
Salary component
Posted by Mohammed, Casablanca, Morocco on 25 May 2008 at 20:51 UAE time

Are we talking here about net salaries or total compensation (basic salary + accommodation + insurance + tickets + ....). Second option should more accurate in salary comparison isn't it?

Editors Reply We are measuring basic. On the salary survey you can see the percentage of what people get in terms of accommodation, etc, in the data section.
Dubai should learn from Singapore
Posted by sak, dubai on 21 May 2008 at 22:59 UAE time

Dubai can learn a lot from Singapore on planning and providing housing for people from all strata of the community.
salary survey
Posted by MeahmyselfandI, Dubai on 19 May 2008 at 12:05 UAE time

True there is racial and class discrimination against nationalities, etc, etc, etc in UAE, but how you let that affect you as an individual is what is important. When I came to Dubai and I heard all this, I usually told people "I don't believe in that.

"I believe in my abilities, my determination and focus and what i can contribute and any company would be lucky to have me on its staff". And that is my mindset.

My first job in Dubai wasn't that great because I had no previous UAE experience and no UAE driver's license. However, it's been three years since and I now have a fantastic job doing exactly what I want to do with great pay and benefits - and I am still aiming higher.

I have never let the "discrimination" brouhaha ever been my focus. I am neither from US, UK or Eastern Europe. I'm an African.

It all boils down to your mindset.
Sharjah -- AED 400/month
Posted by MG, Dubai, UAE on 19 May 2008 at 07:30 UAE time

Remember that AED 400 is just Indian Rs 4,500 and YOU MUST NOT ACCEPT this offer barring any Typo (I think instead of AED 4000 you entered AED 400/month). If you are a professional even without experience AED 4000 is not enough to survive with dependents.....
To Deepak - Minimum Salary in Sharjah
Posted by TWK on 19 May 2008 at 06:54 UAE time

I don't know what industry you are in or what job you are about to be employed in but I hope you haven't accepted the job offer.

This is an extremely low wage regardless of whether your accommodation is included.

Sharjah is cheaper than Dubai but not THAT much cheaper. And groceries i.e. Carrefour are the same whether you are in Sharjah, Dubai or Oman.

To put things into perspective: A labourer on a construction site can earn that much and they still get into debt regardless of accommodation and food included.

Please be careful! The UAE is not a cheap place to live let alone enjoy yourself in!

Please be careful!
Racial discrimination and reality in salary gap
Posted by wowiermc, Doha, Qatar on 18 May 2008 at 22:09 UAE time

Do not compare your salary in monetary terms in your current place of work, the real measure is the net purchasing power your salary will have in your place/country of work.

In the end, you should enjoy the adventure.
Salary survey
Posted by Pepe on 18 May 2008 at 20:13 UAE time

It's not clear whether you ask for yearly or monthly salary (and also shouldn't leave to chance that people assume the same currency, USD).

From the result (your median USD7k for Malaysian Engineer in Saudi) I assume most people (like myself) have assumed you asked for monthly salary.

Editors' Reply It is written clearly in the dialogue box where you enter your salary we ask for your annual salary in US$.
Re. Reply to Racism & Reality
Posted by H.Nair, Dubai on 18 May 2008 at 10:10 UAE time

Well...this is a reply to red, white and blue from Texas...its deplorable that you speak like a white slave owner during the American Fifties. There is no doubt that the standards set by Western Universities are pretty high BUT that doesn't mean that the Indian education system or any other education system in inferior to their western counterparts. If that was the case the U.S & U.K wont be now flooded by IIT & IIM graduates from India (just a grim reminder, CEO of Pepsi is an educated woman though she took up western education at the later part of her life). The logical answer to your question of why Indians are not leaving to India is very sample - We are still a developing country & we all cant AT PRESENT get a decent job back home. Again a grim reminder, you took 300 years to achieve what you are now....but we are at more than half way through in just 50 years. WTO reports that by 2020, India's GDP will over take Japan by 2050 it will be equivalent to the GDP of U.S. Which essentially means what you might have achieved in 400 years; we are acheiving in 100 years....and yes regarding untouchability, for American and British Newspapers India was still a land of snake charmers and Elephants till 2000; it will take some time to change the perception.
Over one fifth of expats send no money home
Posted by Melisa, Dubai, UAE on 16 May 2008 at 07:46 UAE time

I don't know if i missed it out, but it's not mentioned in the article the exact reason why expats send money back to their home country. Had to check because of the part where it says that more US/French/British expats do so, compared to India/Pakistan. I guess this is due to the fact that the expats from the west earn a lot more than those from the east. While saving for the future may be the one of the reasons for the Westerners, it will be quite different for us expats from Asia. The money we remit to our home country is basically for our family's daily survival - which is why we are here in the first place - and the amount we send back home on monthly basis is definitely more that the amount we get to save for rainy days. People may think that this is not a healthy way to manage our finances, but this is reality.

My husband and I are from the Philippines and a substantial part of our earnings is remitted back to our families in Manila. Not that they are now living in luxury, but since our parents are retired from work, and our siblings do not earn enough to support their own families, our remittance helps them cope up with the never-ending increase of prices back home. And I guess my situation is definitely similar, not only with my fellow Filipinos, but also with other fellow expats from India, Pakistan, Sri Lanka, etc.
Minimum salary in Sharjah (UAE)
Posted by riaz, Dubai, UAE on 15 May 2008 at 15:28 UAE time

NOT AT ALL. SCRAP THE OFFER.
Minimum salary in Sharjah (UAE)
Posted by DEEPAK on 15 May 2008 at 12:12 UAE time

Dear all,

What is the minimum salary in Sharjah (UAE) and what are the expenses including for food and transport.

I have got an offer for 400AED per month....with accommodation. Is it sufficient to survive there?
Salary Survey
Posted by ibrahim, Dubai, United Arab Emirates on 1 May 2008 at 14:56 UAE time

Concerning the salary survey, it would be more accurate result obtained if column years of working experience to be included in the Salary Search Panel.


Kind regards
racism or reality?
Posted by red, white and blue, Texas, USA on 29 April 2008 at 01:51 UAE time

Yes, many Westerners get paid at a higher salary than other nationalities in UAE. Fair? Maybe.

2 factors are at work here.

1) The quality of education tends to be higher in Western countries. Nothing racist in this statement - it is just a fact. Want a good education? Go to a Western University.

2) People from poorer countries accept lower salaries - that is an irrefutable fact.

How do I know? I worked in a UAE government hospital for 5 years alongside various nationalities. It was run by Western staff and a Western company in the beginning and was top-notch.

The UAE government then decided to take over it added many non-Western staff. Sorry to say but the quality and the level of corruption skyrocketed. Many Western staff left and the quality left with it. That is a fact. Nothing racist about my comments at all. Just the plain facts.

If you want a better life/standards/salary then do away with corruption/racism, etc. in your own country. I hear many Indian nationals complaining here but we all know that the caste system although officially illegal is in full force there.

So clean up your own backyard before griping all of the time about what the Gulf countries do. Stay in your own country. That is what I did. I got fed up and returned to my own lovely country.

I love it here!
Country of Residence
Posted by John, Simi Valley, USA on 21 April 2008 at 22:31 UAE time

I am little confused about this, I am a Lebanese National with American Passport and currently I work and reside in the US.
Not
Posted by richard on 15 April 2008 at 17:43 UAE time

I currently work in Saudi Arabia. The difference in pay has nothing to do with "race" but with "nationality". There is a difference. Being from the U.S., I see the distinction. I am a black man, but my salary is in the same range as that of people of other races who are from the U.S.. What I have seen around where I work, the pay pretty much goes like this:
Highest to lowest:
Westerners (U.S., U.K., Germany, France, etc)
South Africans
Other African Nations*
Saudi Nationals
Philippinos, Malaysians, Indonesians
Indians
Pakistanis, Bangladeshis

*The pay for the other African Nations depends on "which" African nation, and what field they are in, for some they might be near the bottom of the scale, for others it might be near the top.

Now if you look at how the pay breaks down, you should notice something. Notice that people who originate from a higher cost of living location are paid more than people from the lower cost of living area?
$US Salary for working in Abu Dhabi
Posted by Kevin., Sydney, Australia on 10 April 2008 at 11:12 UAE time

Hi,

I would like to obtain an estimate on salary ($US) figure of what I could expect if working in Abu Dhabi for a large international construction firm.

I am currently a Senior Project Engineer / Project Manager in the Building Construction Industry in Australia and have over 10 years work experience in both building and civil works with project management experience.

Also, what is considerd a reasonable accomodation allowance in Abu Dhabi. I have been told $7,500US per month. Is this sufficient?

Regards,
Kevin
Most loyal employees
Posted by mia on 3 April 2008 at 11:14 UAE time

I think the reason why Saudi nationals are the most loyal employees is that they receive higher salaries compared to other nationalities who do the same work as they does. An indian secretary for example receive AED1500-2000 while a Saudi national secretary receive AED4000 or more, to think that they are doing the same job. Why do they differ in salary?
salaries GCC
Posted by Ian McPhee on 30 March 2008 at 21:21 UAE time

What most of the comments seem to miss is that employers will offer salaries based on supply and demand. What employers NEED and are willing to pay for are qualified personnel with EXPERIENCE (not qualifications), ability to make decisions, flexible to meet the demands of the job, and ability to work in a multicultural harsh environment. Ex-pats from EU / N.America must be enticed to work in an environment harsher than their native country, where they have little or no rights, away from family, for the one reason, to try to make some money for the future. Further more, the ex-pat positions are temporary. Many GCC nationals are fortunate not to have to work for a roof over their head and basic necessities of life.
Discrimination against origin
Posted by Toufic Mourtada, UAE on 12 March 2008 at 15:39 UAE time

This is a calculator of how much discrimination there is in UAE. I cannot imagine why a German engineer would be paid more than an engineer with same credentials coming from Punjab. The nationality should make no difference in what people earn but rather it is the qualifications. So you better take the nationality filter and replace with a range of years of experience.

Editors Reply The point is not whether people should, but that people do. German engineers get paid more than Punjabi engineers. That's a fact. For the survey to be useful, it has to be based on the realities of the market.

That said, years of experience would also affect the result, as would things like MBAs, but we could only ask for so much detail from respondents.

We will look at adding addition details in next year's survey.
Errors in the calculator - useless
Posted by Errors in the calculator, -, - on 12 March 2008 at 13:56 UAE time

I don't know if I'm the only one experienced this problem, but have you tried to a salary calculation, based on e.g. an civil engineer from Germany based in UAE, with a salary of respectively $ 75.000 and $ 55.000 - the outcome is far from the same and changes around 25 %. What kind of calculator is this and what's the purpose? - just to give people an illusion that their salaries are enough? I'm so sick of these manipulating surveys here in UAE!

Editors reply Many thanks for your comment. As more and more people enter their details the calculator will get ever more accurate. What we need are more Germans who are electrical engineers in the UAE entering their details. As more people enter their details the calculator will deliver greater accuracy. At the moment, it could be that there are not enough German electrical engineers living in the UAE to make it entirely accurate.

Keep coming back...
Inaccuracy observed for CIO position
Posted by SP, Toronto, Canada on 10 March 2008 at 17:35 UAE time

The information that you have is inaccurate for sure....see below
You have said you are earning $100,000. The average annual salary of C.I.O. in United Arab Emirates for nationals of Canada is $10,000.

Editors reply This will be rectified shortly.
Discrimination?
Posted by Sheyma, Bahrain on 7 March 2008 at 15:25 UAE time

As a local national, I have always been naive to the fact that there is a blatant discrimination that goes on in the Gulf. Discrimination is wrong no matter who it is that is in the butt of it, but what is even more mind boggling is that here, locals are discriminated against. Get a job as a foreign hire and you win so much more in salary, payments, and annual tickets back to your country. While locals get salaries that are less, payments that are minute - because you put in the category of assumption that you own your home or live with family since you are local, and of course - there are no extra perks for you since you don't have to travel back home. In fact, that goes even further to say that a lot of companies give their local employees less holiday since they don't have to go abroad to visit family. SO, not only do we get paid less while being less expensive because we don't need annual tickets, we also work MORE since we have half the holidays others do.

This is something that definitely should be focused on and worked out.
DISCRIMINATION?
Posted by adrian, dubai, philippines on 4 March 2008 at 15:52 UAE time

I am always asking that question to myself why there is a salary rate here in UAE is different according to races. Racial discrimination, or it is really different skills? Many other factors can be raised on this matter. For example, two different people by race works on the same field, same scope of work, and everything is the same as far as job description is concerned. But, the other one has a twice salary than the other. If only the skills will matter how can there be a difference? In our society or in any parts of the world discrimination is always there. It is a matter on how we handle it. If you let yourself to be discriminated then you will. Or, sometimes we have no choice but to accept it, because of money, unemployment, and etc... But the question is, how can we get rid of it. Well, I could say that it is our choice, if your brain and your essence will not agree on anything then move-on. Don't work with a sense of injustice just because your salary is not fair. Be wise and be assertive if you know and believe in your credibility, stand-up, and be recognized.
Quit Complaining!
Posted by Indian, Dubai, UAE on 1 March 2008 at 15:05 UAE time

Complaints! Grumbling! Discussions! Thats all we do. Honestly is that really going to help us? Ever since I came to the UAE, I have come across Asians complaining about low salaries. While its a very real fact that we are often paid less than our counterparts, has anyone thought to ask WHY this is happening? If we just look around us you will see that we put ourselves in this situation. We stick to people of our 'kind' in the workplace, dont mix in the office, dont give our opinions, dont open out mouths when we think something is not fair, basically suffer from a lack of confidence. We dont act like professionals and we are the first people to use terms like 'the whites' which is also DISCRIMINATION since we are putting them into a category based on skin colour.
so coming down to it - WE ARE ASKING FOR IT!!!
I am Indian, proud of it, look Indian and studied and worked in India. I am a professional and act like one and will never work for any company that I think is racial and have said so at interviews as well. The result - I dont feel my skin colour makes any difference.
So all you people out there, stop grumbling and do something about it, For starters you could start being more confident and speak up for what you believe in and do it politely and diplomatically. And voila! You will be a much happier person in your workplace.
Discrimination
Posted by Khalil, Dubai, Jordan on 28 February 2008 at 11:07 UAE time

If this is the case, why the hell do companies (or government) have HR departments & organization charts? But I agree with "Comment 26", you need to take a stand and follow through...
The simple cure for wage discrimination...
Posted by Hursh Chandhok on 27 February 2008 at 18:58 UAE time

It's been done.
Assume that you are being paid less than your differently colored peers who deliver the same results as you (& further assume that this is an objective fact, not your own perception). Please- stop whining and go tell your boss, "Sir, I'm doing a white (or blue, or green) man's job so why won't you pay me a white (or...) man's salary? If not I'll find someone (possibly your competitor) who will!". Obviously you should be ready to follow through with your threat to quit. On the other hand, if you're ready to accept second class treatment, that's just what you're going to get. And this is nobody's fault but your own.
Of course this tactic will not work for manual laborers and domestic workers- they certainly can't be left to the tender mercies of market forces, regardless of skin color.
Salary
Posted by The Consultant, Dubai, United Arab Emirates on 26 February 2008 at 19:04 UAE time

Hussain, thank you for your feedback but you have not understood my previous comment properly.

Firstly, I am absolutely NOT saying that you should try to get ahead in life by kissing behinds. People who try that approach to compensate for lack of ability usually get found out eventually. A positive attitude is something different, it means working hard and demonstrating to your employers that you are an asset to the company. Most importantly, it means understanding that you have to EARN the right to a promotion or a pay rise. This is in contrast to Shahid's original comment, where he seemed to be suggesting that people should simply be given the higher paid job purely because they have a bit of paper that (they believe) is more prestigious than the one their boss has.

The point I was making was that paper qualifications are only part of the story. You can have all the qualifications you want, but if you cannot demonstrate a high level of ability, as well as a talent for management, you are not going to get that promotion.

Can a person perform a management role in one field, even although his qualification is in another area? Maybe, maybe not - it depends on the person and it depends on the job. Of course a doctor needs to have a medical degree; on the other hand, Richard Branson can't fly a 747 but he seems to be doing an ok job of running Virgin Airlines. Until recently in the United States, approximately half of CFOs were not CPA holders!

It is my experience that the "discrimination" complaint is often flawed - either the complainer is comparing his job to a different, more valuable job that requires a specialist skill set (and consequently pays better) or is kidding himself that he has the talent to do the better-paying job that he covets, or may even just secretly lack the drive to actually to move out of a job he is comfortable with to take on the responsibility of the higher position. Conversely, when genuinely talented people find themselves underpaid, they tend to do something about it, even if that means leaving the company for a new employer.

Finally, I cannot speak about the plight of Saudi Nationals, but here in the UAE, there is no question of a private sector employer underpaying a UAE National. When you come across a talented National that you want to offer a job to, if they already work for the government, you will have a hard time persuading them to move across. Those who are willing to work in the private sector can command a very good salary (better than a Westerner with the same qualifications and experience). As I said in my earlier post, there are plenty of well-paid Indians and Arabs in the UAE, but these are the guys with talent, valuable skills and a solid work ethic. Sadly not everyone fits that description.
Salary discremination
Posted by Hussain M, Khobar/Jeddah, Saudi Arabia on 26 February 2008 at 13:11 UAE time

I agree with Shahid on salary discrimination.

Westerners are most definitely paid up to 5 times more for the same job a national or Asian would get. I have been stressing this point here on Arabian Business for months.

With regard to "the consultants'" comment that "They might also consider that perhaps some of these "nothing" Europeans got their jobs because they have a more positive attitude to life than someone who thinks his degree gives him the right to succeed, or looks down on respectable trades as "nothing", what you seem to be saying is that a carpenter from say Belgium can easily be a senior architect? A head chef from France can be a senior editor? So long as he is happy and positive.

So basically what you're saying is that everyone should kiss (behinds) to get the job they want rather than deserve it through merit and hard work?

If that's the case then farmers and peasants should have run the Manhattan project back in the 40's, and Einsteins and the scientific elite are no different from Shakespeare and his poetry.

I see no reason for a Greek gardener to earn 20000 SR.mo while a GCC national in the same position with more years of experience would earn 3000 SR.mo or less.

The survey mentioned Saudi nationals as the most loyal...what it didn't mention is we are the most underpaid of all GCC nationals.

I used the salary calculator tool and I'm telling you, even though I work for the biggest oil company on the face of the earth... I'm underpaid... so the calculator tells me.
Survey details
Posted by Moe, AbuDhabi, UAE on 26 February 2008 at 11:25 UAE time

Could you provide the number of participants in this survey (in each of the countries included) to reflect how accurate this information is.

Editors Reply: Most of the information you need is included in this report. In total we received almost 9000 respondents, almost 8000 of which were from the GCC. You can find a breakdown of country responses in the tab at the top of each page. Kindly look under You and Your Company. .
Salary
Posted by SHAUN, duabi, uae on 26 February 2008 at 08:57 UAE time

In work in Dubai Drydock where the salary for workers is 1200 basic, plus food, plus accommodation. The food is not worth eating and we have to work continuously.

Our salary should increase by at least 50%.

Posted by The Consultant, Dubai, United Arab Emirates on 25 February 2008 at 09:32 UAE time

In response to "An Asian"'s comments on discrimination:

Taking your receptionist example, firstly you are comparing the extremes of the salary range - the average European receptionist would not be paid "five times" what an employee from the subcontinent would earn.

Secondly, how many companies in the UAE actually employ a European receptionist? I would estimate it's about 2%. So, in reality, a European woman who wants to be a receptionist does not automatically get a "big" salary, actually 98% of the time she does not even get considered for the job!

Furthermore, you are assuming that the two jobs advertised are identical, which is unlikely to be the case. The better paying job might, for example, also incorporate an administrative or PA role that requires genuine fluency in English, a skill which is at a premium in the UAE. Company bosses are not stupid and will not pay a high salary just for the sake of having a European on reception, if the skill set required can easily be provided by someone who is willing to accept less money.

As a final thought, ask yourself, how is it possible for some employers to get away with offering such poor salaries? They can only do so because someone, somewhere is willing to take the job at that salary. And that is not the Europeans' fault - don't blame them for only accepting jobs that pay a decent living wage.
A helpful survey
Posted by Saradhi, Sharjah, UAE on 25 February 2008 at 08:03 UAE time

Indeed it is an excellent survey published by Arabian Business, which really helpful for those who are looking for betterment, to realize and to take legitimate step for each individual, in their career, according to the present market scenario. I really impressed with one of the vital topics "Promotion prospects key to retaining talent". Thanks Arabian Business once again and request to cover more important topics related to this subject.
Market Pricing by Nationalities
Posted by Prof Philbert, Salmiya/ Kuwait on 25 February 2008 at 07:18 UAE time

It has long been the vogue that people who are coming to work in the GCC region are classified by nationalities and package is offered accordingly. But it must be admitted even among the dominant nationalities, there is different scales of pay by the citizenship and going market price for the services based on education and length of experience. Diversity in workplace is celebrated everywhere and and the minority rights are protected by labour laws and international conventions.
Professional Capability, salary discrimination
Posted by Patricia de Leon, Dubai, UAE on 24 February 2008 at 23:18 UAE time

I agree that generalizations must not be made when making arguments. When Shahid argued irrationally that "Indian education is 100 times better..." it only lessens the core issue and taints the argument being made.

I have to say though that The Consultant shouldn't be so defensive. I don't think most people (even Shahid) look down on carpenters, photographers and the like. In fact, I don't think that's even the point here.

The point is how can a photographer who may be good at his trade possibly manage a marketing team when they don't have the know-how of that profession?

In Dubai, I think these people have so far been able to survive in their positions BECAUSE of their "people skills" and because of what I call crutches: the actual qualified staff who do all the grunt work (and sometimes mgmt work) and have the know-how to run the operation under the "supervision" of these managers.

I'm not saying that people can't branch out of their chosen careers - more simply, I'm not saying that carpenters can't ever be marketing managers. If they want to change to a profession, then experience must be garnered first (working their way from the bottom) coupled with study of that field.

When you think about it, it's understandable that there are some who get upset that their bosses got the position based on a "postive attitude" and "basic management ability" when you consider the amount of money that employees have poured into their education and the amount of time they have put in along with their efforts to get that degree.

Yes, basic management skills and attitude is essential but only as equally essential as qualifications. And who's to say that a person who has the qualifications, doesn't have these same mgmt skills? Why not choose them then?

Of course not all companies are corrupt and there are some who are blind to skin colour. I doubt thought that they are the majority, though.

All that most of us are asking for is Equal Opportunity Employment. I can understand some countries may want to protect their own citizens. (ie Emaratisation and Saudiisation...heck, this concept is not even exclusive to the GCC. How about less tuition fees in the universities for UK citizens compared to international students?) But discrimination in the workplace even within expats? Surely, this workplace segmentation is also harming society as a whole.

Invisible racial lines are being drawn. Dubai, in particular, isn't really a melting pot. It is, in essence, just a salad bowl.
Nutritionist
Posted by Valerie Houghton, Abu Dhabi, UAE on 24 February 2008 at 20:43 UAE time

Vague term, anybody can call themselves a nutritionist. Dietitians and registered dietitians are in the UAE, but have very different qualifications. Need to be more specific with info on this topic. Nutritionist in the USA can be anyone as well, in some States, not a regulated title.
...in a competitive environment with rational customers...
Posted by Hursh Chandhok on 24 February 2008 at 19:16 UAE time

A would-be employer specifying the 'right' skin colour or nationality in a recruitment advertisement is restricting supply (since the available resource pool obviously shrinks), and consequently drives up his company's recruitment cost. A supplier who tries to restrict the sources of supply available to his customers is called a monopolist; a customer who tries to do the same is a fool.

Now assuming that all human beings are created equal (and I have found no reason so far to doubt this assumption), this means that the company that wants a 'UK/US educated employee' ends up paying more for the same quality of resource. So in time, that company will be driven out of business by the competition. The smart Asian receptionist (or manager, or programmer, or investment banker) meanwhile will contribute to the country's brain drain of the best and brightest by moving to the US/UK (where it is illegal to specify race in recruitment advertisements - and employers are smart enough to recruit the best, regardless of race).

Company loses, country loses.

Of course if the company's customers are also foolish (i.e. they are happy to pay more for the same goods/services), or else competition is non existent then of course there is no problem for the company. He may go on filling his ranks with employees of any color he pleases and pass on the cost of his inefficient policies to his daft customers.

It's all down to supply & demand. Deal with it.
RACIAL DESCRIMINATION
Posted by AN ASIAN, UAE on 24 February 2008 at 16:35 UAE time

There is plenty of discrimination here in the Gulf. See the employment sections of any newspaper here in UAE- example a UK/US receptionist is paid five times the salary of an Asian - how can this be fair?
Salary "discrimination"
Posted by The Consultant, Dubai, United Arab Emirates on 24 February 2008 at 15:47 UAE time

Every time there is news item about salaries you can guarantee that someone like Shahid will write in and complain about discrimination. I am sure that carpenters and photographers of all nationalities will be unhappy to see their professions dismissed as "nothing".

These letters always take the same tone - that the writer and his like are more deserving of the job because of their qualifications are allegedly superior - and throw in a few wild statements ("Indian education is 100 times better than South African") Really?!

Perhaps some of these letter writers should consider that qualifications are only part of the story, no degree gives you any right to a top job; attitude, interpersonal skills and basic management ability are usually just as important. They might also consider that perhaps some of these "nothing" Europeans got their jobs because they have a more positive attitude to life than someone who thinks his degree gives him the right to succeed, or looks down on respectable trades as "nothing".

Finally, there are plenty of well paid and highly successful Asians here in Dubai and, despite being a highly qualified European myself, I am quite used to working in organisations where Indians make up many of the senior positions and earn as much if not more than the Europeans. Many of them will also have started out as lowly paid employees, the difference is whether you use "discrimination" as an excuse for failure, or motivate yourself to succeed.
Inflation
Posted by Peter Nunn, Doha, Qatar on 24 February 2008 at 13:57 UAE time

What are your sources for quoting inflation in the region particularly Qatar and what is the basket of commodities used in this source?

Editors Reply: All the inflation figures quoted in the story are 'official' inflation figures, quoted by the government of that country.
skewed
Posted by David G on 24 February 2008 at 13:42 UAE time

This tool does not seem a fair indicator. In my personal experience, UK nationals get paid more in media jobs than Indians do. While your tool reflects that for the UAE, it does not do so for Bahrain, and throws up nothing for Saudi Arabia.

This does not mean there are no nationals of those countries working in Saudi Arabia, just that they haven't participated in your survey. Nor have high-income UK nationals in Bahrain.

One more thing - your job categories do not differentiate between journalist/ editor/ sub-editor/ reporter/ assistant editor - each of these pays differently. So if a junior reporter logs in to find the average salary across countries and across expat nationalities is $35,000, he'd feel underpaid, while a managing editor looking at the same number would feel overpaid. Surely that's odd.


Editors Reply: The more people use this tool, the more accurate its findings will be. We have started with 9000 salaries from across the GCC, across industry sectors. Over the next few weeks we expect to add many thousands more.

At the moment that may mean that at the edges of the survey you get some unexpected results. However, the way that we have structured it means that within a matter of weeks, days even, a lot more depth will be added across positions within different countries and within different nationalities.

Basically, keep coming back.

You are right too on job classifications. The next salary survey we do will have a revamped classification system that is far more intuitive.
Salry discriminations
Posted by Nirmal Jit Singh, Bangalore, India on 24 February 2008 at 12:57 UAE time

I could not agree more than with Shahid's comment.
Salary discremination
Posted by Shahid, Dubai, UAE on 24 February 2008 at 12:33 UAE time

In my career of 10 years i have seen many U.S. and European managers who were, back home, nothing but carpenters, photographers etc., and have assumed posts of division managers, marketing managers in most reputed companies in the UAE.

It is now high time that responsible people employed for recruiting take a thorough look at the prospective employees experience and education level as well before judging them. Indian education is far better than many European and USA universities, and 100 times better than South African, still few companies issue advertising asking for USA, Europe and South African educated personnel.

Whereas in USA and Europe many big companies have entrusted their future to Indians (PEPSI, CITIBANK and many IT companies) have either Indian as CEO or chairman.

This part of the world needs to look at realty, not continue the age old rule of thumb.
Why the bulgarian nationality is not in?
Posted by Nassy, Dubai, Bulgaria - UAE on 21 February 2008 at 14:53 UAE time

I don't understand why the Bulgarian nationality is not included, there is even Bulgarian Sunday School in Dubai and for small country like Bulgaria-quite a lot Bulgarians are working in Dubai...obviously I am one of them.

Editors' Reply: The nationality list is based on the numbers of respondents we had from that nationality. If we received very few responses from Bulgarians, we could not meaningfully include them in the results.
survey covers a vast section? Discrimination
Posted by ramit shrivastava, Manama, Bahrain on 21 February 2008 at 08:49 UAE time

I really appreciate the survey, but the sample does not look to be from a varied cross section of society. For example the annual salary as per nationality in all countries shows Pakistanis and Bangladeshis in a range of 45k whereas Indians do not figure at all - that's surprising and raises doubts.

Editors Reply: We are increasing the list of nationalities shown so that it also includes nationalities from India, Palestine, the Philippines... Kindly note the average salary is worked out by