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Are salaries still attractive in the Gulf?
Each week Arabian Business invites you to have your say on a popular issue. This week: Are salaries still attractive in the Gulf?
Yes | No
Taher, KSA: YES
Salaries in the Gulf are still attractive despite the decline of the dollar for more reasons than one. If you compare an apple to an apple, salaries in the Gulf are on a par with salaries in other parts of the world, considering the standard, cost of living and the tax-free status that we enjoy over here.
But, it is very difficult to explain this to the common man who is used to getting more money when converted to the rupee than what he is getting now in dirhams or riyals. But also to be considered is the fact that the rupee in India buys less than what it used to buy, say a year ago. Still, we may see that the salaries in the Gulf are being adjusted to make the expats feel at ease (rightly speaking, the whole economy in the Gulf will be affected if the expats were to leave).
Also we must consider the attrition factor that is rampant due to the shifting of jobs by these expatriates especially professionals. Employers are offering more and more to get the right candidate. In fact, most of the cases involve a new entrant in the company getting a fatter package for the same position than what an already existing employee would be getting. But for the common man it is important to consider all the pros and cons before deciding whether Gulf salaries are still attractive or not. I for one, still consider Gulf salaries to be attractive in terms of the standards we get here including the tax-free status that can be enjoyed. The current situation still remains attractive, but only time alone will dictate what the situation will be in the future for expats living in the Gulf.
Julia, Dubai, UAE: YES
While I agree that the salary incentives in the Gulf are not as good as they once were, I would not say they are unattractive. When the Gulf first started attracting expat workers, they were lured here with attractive salaries but today people choose to move here for reasons other than the good salary packages -they enjoy a life in the sunshine, tax-free salaries and all of the other trappings of an expat life - why should they be paid extra for choosing to this?
I am from the UK where most employees can enjoy giving away 40% of their salary every month - I know where I would rather be.
Ayman, Dubai, UAE: NO
I want more money, but then again, who doesn't? The chances of anyone saying yes to this question is remote, however, what is true is that as someone who employs people, it is becoming increasingly difficult for me to attract people from well-established international markets.
Previously, one of my biggest markets was the UK. UK educated and experienced employees tend, with inevitable exceptions, to be able to deliver what I expect of them, with a minimum induction period. However, with the dollar in steep decline, the increasing costs of doing business here in the Gulf and the bad reputation the GCC is getting in terms of being a good place to live including rising transport and accommodation costs, I'm finding it more and more difficult to convince the right candidates.
I know people from the Indian subcontinent, which itself has been a major supplier of human resources to the Gulf region, however, of late the Indian economy has boomed and salaries in Indian markets are rocketing. Annual salary appraisals of 20 to 30% are not uncommon. And Indian companies have started to advertise in the local market too woo people back to India.
In light of all these factors, coupled with rising inflation and the cost of living, there is hardly a business case for people to stay back and work. Add to the fact that salaries have not been increasing and matching inflation, and you have a major problem.
For example, 10 years ago a three-bedroom flat in Dubai was available to rent for US$9800, today it is hard to find a studio for that price in the same area. Financial savings were previously the prime factor for people to move to the Gulf and to stay and work for many years, but with those attractive packages now in steep decline people are having some serious second thoughts. We could even see a mass exodus in the coming years if the
situation carries on.
It is the measure of attractiveness that is important. And on that level, at the moment one has to say no, salaries are not adequate, and they need to get higher and match the level of inflation that is currently damaging the economy.
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