UAE, Qatar top Gulf list for salary rises

WAGE RISE: Gulf private sector employees received an average of 11.4 percent salary increase in 2008. (Getty Images)

Private sector salaries in the Gulf region rose by 11.4 percent average this year as inflation and talent shortages increased, it was revealed on Sunday.

According to figures released by GulfTalent.com, the UAE and Qatar topped the list of pay rises with increases of 13.6 and 12.7 percent respectively. Oman followed at 12.1 percent.

Saudi Arabia has seen the lowest increases at 9.8 percent, just above Kuwait at 10.1 percent.

Levels of inflation and a shortage of talent have increased basic salaries but many are failing to keep up with forecast rates of inflation for 2008, suggesting diminishing net disposable, according to the report.

Only wages in Bahrain, where the average salary increase was 10.5 percent, is higher than the country’s inflation level of 9 percent for this year.

Engineers in the construction and energy sectors saw the highest average pay rises, followed by finance professionals fuelled by the expansion of the banking sector.

The rising cost of food prices and living have contributed to the increases, followed by increasing salaries in India, the Gulf’s main source of expatriate professionals. The weak US dollar at the beginning of the year has also contributed to the rises.

According to the report, the region’s ongoing requirement for talent is forcing employers to adjust, not only their salaries, but also their working practices. One of the major new trends for 2008 is the number of large companies who are now reducing their working weeks from six days to five days.

Another common trend is the emergence of pay disparities between new and existing employees with several employers offering higher packages to new staff compared to existing staff in similar roles.

The study also predicted a flood of Western talent to the region, including those of Arab or Muslim origin, on a scale not since the post 9/11 influx as a result of the current economic climate.

What's the average salary for your job in the Gulf? Try out our Salary Calculator .

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