Dubai salaries to rise in 2011 on hiring sprees

Salary levels in Dubai will likely rise in the single-digit range in early 2011, driven by hiring demand in sectors such as healthcare, IT and telecoms, recruitment agencies have said.

While salaries will fall short of the highs seen pre-crash in 2007, wages could increase by as much as eight percent in the New Year, agencies polled by Arabian Business said.

“Salary levels have been relatively steady and I think 2011 salaries may show minimal increases of four to eight percent. However, bonuses will certainly be conservative for the end of 2010, early 2011,” Jennifer Campori, managing director, Charterhouse Middle East, said.

Wages in the construction sector are poised to benefit from a steady pick-up in infrastructure projects and the impact of Qatar’s successful bid to host the 2022 World Cup.

“Construction and real estate were the sectors lagging behind in terms of recovery,” said Cliff Single of BAC Middle East.” [2022] could have a positive impact on these sectors due to the massive investment in infrastructure that is expected to follow.”

Other sectors poised to see a rise in demand include healthcare, logistics and FMCG.

 “Demand for talent will be strong as multinationals seek to increase their market share in the Gulf region,” said Michael Al Nassir, partner and head of Pedersen and Partners. He added that he expected to see new growth in the education sector as well.

A poll by recruitment website Bayt.com showed that 69 percent of 4,765 companies polled expected to hire in early 2011.

“We expect to see a return to growth in 2011 across industry sectors and company sizes, including SMEs, but by no means limited to them,” said chief marketing officer Lama Ataya.

Many of Dubai’s locally-owned conglomerates, as well as regional multinational units, seemed to have overshot the mark when it came to downsizing staff post-crisis, she said. 

“We saw a lot of hiring activity taking place in 2010 to re-optimise and re-strategise talent pools. We have begun to see a return to hiring for growth in the past few months."

Dubai’s small businesses are also expected to drive a significant amount of hiring activity, as they continue to gain a foothold in the economy.

“I think 2011 will be about growth and development, especially with the SME market, which makes up a large level of the UAE’s business,” said Campori.