By Gavin Davids
Agencies predict single-digit rise as recruitment rates increase; SMEs to drive growth
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.”  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.
Hiring should be done objectively and this time Dubai should tread with caution, because Abu Dhabi is not too all willing to lend a hand.
I'll believe it when I see it.... at my company in the construction sector we are still downsizing.... doesn't give me much leverage to ask for a raise!
Qatar 2022,sure, I can see it now, companies hiring staff ten years in advance in case the world runs out of construction personnel.......
Where do these people get their figures from and who does their analysis.
Majority of Dubai expats are gone and are still going, companies ARE still downsizing/closing thus I cannot possible see the demand for Healthcare workers, teachers, IT, telecoms etc etc getting any bigger.
All these sectors plus many more were are set up to take care of the volume of people living in Dubai.
Reality is, companies are still cutting down salaries to meet the realities of the market, why would any company consider raising salaries when the costs of living are going down (let's ignore luxuries/lifestyle)
Companies paid silly salaries/monies during the silly years because they had no choice due to their obligations.
salaries to rise in dreams
i really have serious doubts about the impact of Qatar's WC win on Dubai's RE and Construction companies. The main benefactor will be the Qatar's real estate and construction cos.
I love it 4 - 8 percent increase in salaries, where do the likes of charter house get these figures from ? The truth of the matter is salaries are still falling and i know as I am a Manager myself for Kobaltt recruitment Dubai. Its a employers market they can offer 20% lower salaries compared to salaries in 2007 and still secure the right candidates, also you will see a rise in expats moving to the region for key roles, they will earn less than 2007 as their expectations are not so high plus lets not forget cost of living has fallen dramatically and is still falling in the case of rents.