Three reasons why salaries among Dubai's workforce have dropped
The slowdown in demand is playing a key factor in the jobs market
Recent studies indicate that salaries of oil workers may rise due to the increase in energy prices A maturing market: Dubai’s income level, by GDP per capita, was $45,000 (AED165,300) in 2013, and $37,000 in 2018 and is expected to fall to $36,000 in 2020, according to Standard and Poor’s. But experts say salaries were artificially high when the UAE was seen as more of a “hardship posting”, whereas it is now a lifestyle posting that is attractive to professionals from around the world. Supply and demand: Population growth in Dubai has averaged at around 7.5 percent over the past five years, whereas nominal GDP growth has averaged 3.6 percent. Hence there are now more workers in the market and less demand. Added to this, a number of companies have decided to hire workers from overseas and those recruits tend to have lower salary expectations than existing residents. Sector variance: According to Korn Ferry Hay Group, junior rates are down by 16 percent, whereas new senior hires are up by two to five percent. According to the 2018 Robert Half Salary Guide, finance, accounting and technology are flat, while lawyers’ salaries will rise five percent in the near future. Oil and gas sector salaries may also rise on the back of higher energy prices.