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Tue 8 Feb 2011 01:18 PM

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Gulf salaries to soar 6.6 percent in 2011, says survey

Rising economic might of Qatar, Saudi Arabia and Asia driving labour changes in Gulf

Gulf salaries to soar 6.6 percent in 2011, says survey
Some 61 percent of Gulf companies surveyed expected to hire in 2011, compared to just nine percent that planned staff cuts.

Private sector salaries in the Gulf are expected to rise at an average rate of 6.6 percent this year, as employers fight to retain talent against rising demand from Asia, a report has said.

Qatar, Saudi Arabia and Oman are expected to see average wage rises of 7.2 and 7.0 percent, in a bid to draw employees from Dubai’s talent pool, a salary survey by GulfTalent.com found.

Salaries in the UAE are forecast to rise by 6.3 percent, higher than those in Kuwait and Bahrain that are expected to increase by 5.9 percent and 5.1 percent respectively.

The survey, which polled 32,000 staff and 1,400 companies across the six Gulf states, said the rising economic might of Qatar, Saudi Arabia and Asia was driving labour changes in the region.

Saudi now employs two percent of Bahrain’s residents, who cross the border daily to work – double the number seen in 2008.

In Qatar, job opportunities have doubled since 2008, and the tiny Gulf Arab country accounted for 16 percent of job vacancies in the region in 2010.

The emirate is now the second most attractive destination for Gulf-based expats, just behind the UAE which retained its top ranking.

“The trend has been driven by fast-rising salaries, falling cost of living, growing employment opportunities and an improving international brand,” analyst said.

Qatar won a bid to host the 2022 World Cup in December, a move that is expected to boost spending, construction activity and job opportunities.

In India, salaries surged by 11.1 percent last year to offer increasingly attractive career opportunities to expatriate workers in the Gulf.

In response, Asian professionals in the Gulf saw a 6.1 percent jump in their pay packets last year, compared to just 3.2 percent for Western professionals.

Dubai, which was rocked by the global financial crisis, is in contrast struggling to cling to its talent pool as it is outpaced by rising wage rates elsewhere.

Five percent of Dubai residents are now commuting daily to the UAE capital, Abu Dhabi, which was less affected by the debt crisis, a five-fold increase since 2008.

Across the Gulf, workers in the UAE and Bahrain received the smallest pay hikes last year at 5.2 and 4.9 percent respectively. Qatar employees had the highest pay rise at 6.9 percent.

More than half of the professionals in the Gulf region did not get a pay increase in 2010.

The review of market labour trends also revealed 61 percent of companies surveyed expected to hire in 2011, compared to just nine percent that planned staff cuts.

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Daniel M 9 years ago

6.6 % increase = "Soar"?

Then again, in Dubai, its only "sore", so 6.6 % does look better I guess .

Ryan 9 years ago

Can you send this repeatedly to my boss? Chance would be a fine thing. But definitely over due.

rossonero 9 years ago

In dubai everything soars...

Mr Magoo 9 years ago

I think you need to take into account the fact that a lot of people were made to take pay cuts in last 2 yrs so in real terms the salaries have declined - I personally know people who had 25% pay cuts and made to work more hours, only recieve half an air ticket per year etc....the problem faced now is there are green shoots of employment growth BUT there are no where near enough people here or arriving here as they used to so salaries have to increase otherwise you wont have any options

RSC 9 years ago

Nope, its just "sore" in Dubai right now.
But ... its a world record breaking, an unprecedented, iconic Sore. No one does it better than Dubai

charles 9 years ago

it is a bit like house prices: you advertise the house for AED 2m but you only get what people are prepared to pay even if that is half what you expect. We all know the reality on that score.
You can publish any salary increase figure you like but reality will reveal later if it was an article of substance or lacking any foundation at all. Going by house prices, I know what I am expecting to see!

james 9 years ago

its a % increase on what where is the base there have been little or no salary increases over the last 2 to 3 yrs so when you run the inflation figures in reality its in most cases means salaries have not in real terms grown at all and in many cases shrunk

owsj 9 years ago

Globally salaries have been affected as have joibs look at the USA or Greece for example - rents have halved and exchange rates are about 20% stronger than 4 years back - costs like parking charges and salik have crept in but so have huge improvements in roads, the metro new parks etc

Most big cities are designed for single bachelors- the costs of housing ,schooling etc have a bigger impact on them - many of those still in work are better off in real terms than 5 years back and few companes were reprotign huge profit increases last year so where does the money come from - the economy is global - a lot more Europeans are looking to Dubai for jobs now often at lower salaries than those from India- see how many Chinese construction companies win tenders at what cost?, salaries are driven by profit and competition and those work both ways - despite all the anguish of the last year those of us in jobs in Dubai are better off than most of the rest of the world -= Egypt? Tunisia?