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Fri 9 Nov 2012 11:33 AM

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Qataris still shy away from private sector - report

QNB says public sector pay, benefits making it difficult to grow private sector workforce

Qataris still shy away from private sector - report
Currency from the Gulf state of Qatar, a Qatari Riyal sits with a U.S. dollar displayed for a photograph in Dubai, United Arab Emirates, on Wednesday, Nov. 21, 2007. Gulf Arab states may fail to keep consumer prices in check by revaluing their currencies against the dollar, according to strategists at HSBC Holdings Plc and Citigroup Inc. Photographer: Charles Crowell/Bloomberg News

Public sector pay increases are making it more difficult for private sector firms to attract new Qatari talent, according to a new report.

A Qatar National Bank study said pay, working hours and job skill-levels provide little incentive for Qataris to enter the country’s private sector.

The report, cited by Qatar daily Gulf Times on Friday, claimed the government offered higher wages, more benefits and preferable working hours than most private sector employers.

Consequently, the public sector employs 92 percent of the Qatari workforce, leaving only eight percent working in the private sector, QNB said in its Qatar Economic Insight 2012.

It added the private sector has accounted for 20 percent of new Qatari jobs created since 2007.

"The private sector provides opportunities for nationals to gain knowledge and skills from expatriates. This is central to establishing the new businesses and industries that are part of Qatar’s long-term development goals of diversification and job creation," the report said.

Qatari women are now proportionally better represented in the private sector than in the overall workforce, the report added.

Last month, Hay Group sai average pay rises of more than five percent are expected to be given in Qatar in 2013, down from 6.5 percent this year.

Hay Group said salary increases in the Gulf state have consistently been among the highest in the GCC over the past three years but the rate has fallen from 14 percent in 2011.

Its report was based on salary data for 54,000 employees in Qatar from 128 organisations and 13 key industries mainly within the private sector.

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