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Gulf living costs surpass pay rises
Workers living in the Gulf are becoming increasingly dissatisfied in their jobs because the cost of living is rising more quickly than pay, according to an online study of Gulf-based professionals.
Gulf-based salaries saw a 15% rise in 2006, while the cost of living soared by 24%, with living expenses increasing the most in the UAE.
According to the survey, conducted by the recruitment website Bayt.com and market research firm YouGovSiraj, most Gulf professionals want more, despite double-digit salary rises. Employees in the UAE and Bahrain felt they 'deserved' a pay increase of 33% to reflect the higher cost of living in both countries.
Gulf countries with large expatriate workforces appear the most volatile - the study found that employees in Qatar are the most unsettled - leading to job-hopping across the region.
Bayt.com CEO Rabea Ataya said: "Interestingly, the lack of growth opportunities, not pay, is cited as the number one reason for leaving a job."
In order to address the problem of higher living costs, the majority of professionals in all the GCC countries who participated in the study revealed that they would rather tackle a new industry than seek a better position in the same field.
However Dubai stands apart from the crowd, with nearly half the professionals polled responding that Dubai is their preferred place of work despite the 28% rise in living costs - the highest in the region.
Ataya added: "Increasing inflation is putting pressure on lifestyles, but the general picture remains optimistic. On average, more than four fifths of respondents in the Gulf consider themselves 'on a par with' their peer group or 'somewhat better off'.
"But perceptions of living standards appear to have a direct impact on the length of time people expect to stay in one location," she adds. And regardless of being pleased with their location, 24% of Dubai's workforce intends to leave the emirate in the next one to two years.
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Posted by fjeff, Christchurch, New Zealand on 28 February 2007 at 03:22 UAE time
My 5c worth, we loved living in Dubai, we chose to have our children born and raised there, we appreciated the Arabic view on families being at the centre of our lives.
However, after 7 years, we just could not afford to all stay in Dubai as a family...........the conclusion was, if we are going to struggle financially, better to struggle back home with the 'social glue' of family around us.
Home is now New Zealand after having been expatriate for 20 years (I could do another 20 personally!).
It broke our hearts to leave Dubai but no point in struggling endless inflation and cost of living hikes with a flat salary that does not compensate for this.
We had good family years there and yet it was not being able to support the family that drove us away.
Posted by HASNEIN AMIJI, DUBAI, UAE on 22 February 2007 at 21:48 UAE time
PLEASE SOMEONE TELL ME, IF THEIR COMPANY'S RISE IN PROFITS OR BUSINESS GROWTH PER ANNUM, ARE IN LINE WITH THE RISING INFLATION IN THE UAE? FROM A COMPANY'S PERSPECTIVE, ITS IMPOSSIBLE TO SUSTAIN DOUBLE DIGIT PAY RISES, AND RENT INCREASES. APART FROM EMPLOYEES LEAVING THE UAE, DUE TO HIGH COST OF LIVING, I THINK COMPANY'S SHOULD ALSO CONSIDER LEAVING THE UAE. THE TIME WILL COME SOON, IF THE GOVERNMENT DOESN'T TAKE FAST ACTION. THE RETURNS FOR FOREIGN INVESTORS ARE FAST DIMINISHING!
Posted by S Menon, Dubai, United Arab Emirates on 21 February 2007 at 08:23 UAE time
If you are alone in dubai, one can make money but if you have family in dubai, he will become bank rupt and if you meet any medical expenses in dubai, he will die.
Posted by Vijay Naidu, Sharjah, UAE on 20 February 2007 at 22:34 UAE time
The Govt has the levers to control this situation and make it 'resident friendly' or not. The Govt. is only pushing projects to infinite levels as if there is 'no tomorrow' and the impending fear of 'loss of oil revenue' very soon. What we are witnessing is a result of such thinking. Better late than never. Need to emulate Singapore on surplus sharing and reducing the impact on the affected segment.
Posted by Jinx Uae on 20 February 2007 at 18:21 UAE time
I just cannot miss commenting on the humour I find in Cyrils' post - Cyril does your boss read Arabian Business.com regularly - do you hope he/she does (or doesn't?).
Lol - good luck with the return flights.
Posted by paul McNeill, Dubai on 20 February 2007 at 17:09 UAE time
You will find that since the greedy landlords started to raise rent prices in accomadation so quickly, i would prosume people jump from one company to another depending on what benefits they will get and so companies will raise there prises as there out goings get higher and so on and so forth. If the costs of living was not so high people would not look to jump so quickly and would try to build a future here, but most people don't now how long they can afford to stay here and so will get what they can, while they can.
Posted by Poosarla S Ganesh, Kuwait, Kuwait on 20 February 2007 at 12:30 UAE time
Naturally, people try to jump companies to compensate with the daily raising cost of living. And the companies making use of the situation to grab technocrats with higher salaries.companies increase prices of products due to increase of their staff salaries & overheads vice versa again cost of living goes up..... and salaries...... and cost ...... isn't it.
Posted by Farah, Dubai, United Arab Emirates on 20 February 2007 at 10:38 UAE time
I do agree with the report as it is so close to reality. However, I believe that the best solution should be initiated by the government, they need to control the inflation rate by supplying more to even it with the demand.
Posted by nj, dubai, uae on 20 February 2007 at 10:30 UAE time
The only other exploitable natural resource this place has (besides fossil fuel, sand and water) is expat!
Posted by qais, dubai, uae on 20 February 2007 at 09:16 UAE time
i would like to say that the above report maching with the reality,however i suggest that that companies who's welling to keep their employees should think about this ,other wise at the end of the day oproffessional emp. shall leave,... for sure......