By Staff writer
Cooper Fitch said new jobs believed to be on the horizon
Salaries across the UAE are expected to rise this year, according to a report.
Cooper Fitch, in its UAE Salary Guide 2017, said it expects to see increases in salaries and new jobs to be created in the coming year.
The report said 2016 was a flat year economically for the UAE, which was reflected in the recruitment activity, which saw slower job creation. In some instances, there was consolidation in certain sectors that led to job losses.
“We have seen salaries reduced or remaining flat in certain industries and it has been a particularly tough year for the banking and energy sectors,” said Trefor Murphy, CEO of Cooper Fitch.
“Banking remains uncertain for 2017 with a significant number of mergers planned for the next 12 months,” he added.
The report is much more positive about the year ahead, citing estimated GDP growth of between 4-6% across the UAE for 2017, with oil prices predicted at between $55-$65 per barrel.
“We expect to see increases in salary levels and new jobs being made available following a better than expected finish to 2016 and a similar start to 2017,” Murphy said.
“We are seeing new hires for the year ahead, with jobs in consultancy, advisory, legal, strategy and tax, along with big infrastructure projects, playing a major part in the recruitment drive for 2017.”
Other areas, such as supply chain and manufacturing have also shown signs of recovery, but to a lesser extent, as have the energy and oil and gas sectors, with reasonable job creation and head count approval predicted for 2017.
“Overall, we predict that salaries will rise by between 4-6%, dependent on the GDP and commodity prices,” Murphy said.
In the real world there is no way that "overall salaries will rise between 4 - 6%" I own and manage a recruitment company that has been in business here for over 17 years and I can tell you the facts are that at best salaries will remain the same for 2017. Many clients are still downsizing and there is no way they will be offering any increases. Those companies that are hiring new staff are looking very carefully at the salaries they offer. Moreover, many candidates are happy to compromise on the salaries they are ready to accept for a better, more secure job.
Nowadays people are struggling to secure a job in market and they are accepting offer which is less from their current package there is no chance of salary Increments 2017.
Never heard of Cooper Fitch. But probably best avoided in the future. Even the UAE projects GDP growth this year at a maximum of 4% - while the IMF puts it at 2.5%. The 6% figure is laughable. Oil at $65? Just a guess. So their salary projection is just fluff and marketing. As others have already said, this doesn't stack up in the real world, where almost every company I know is downsizing.
Could not agree more, I also run a recruitment consultancy have been recruiting in the Middle East for over 10 years and would actually state the opposite to this article. As companies and the entire GCC adjusts to the modern economics of a lower price per barrel companies are avoiding shelling out big expat packages. With, as you say downsizing happening across the board we are finding quality qualified candidates ready to accept up to of 20-25% less to ensure a secure and steady role. This then effects the salary brackets being offered and results in less pay on offer, In fact I have a client offering 'like for like' packages to head hunted candidates who are accepting the offers as they realize the current climate. I can appreciate optimism, but this seems like free marketing with a catchy headline. I also recall the same gentleman with the slogan 6 months ago 'Mass Expat Exodus'
Agreed. I heard the owner and CEO (as he was keen to tell us) interviewed on the radio and he could provide little credible backing to his claims of 4-6% GDP growth which was the basis for this claim - in fact it sounded as if he'd probably read a couple of newspaper articles and winged it from there. Apparently he bought the business from Morgan McKinley - perhaps there's a good reason they decided to sell - I certainly cannot see a favourable outlook for employees for some while
Working in the banking/ financial industry for around two decades in UAE, I personally know a number companies including banks & financial institutions downsizing or seriously considering to downsize to manage their bottom lines & stay afloat.
They are sending frequent indirect signals to their employees through various strategies & internal messages that whatever they (employees) are getting, they should be contented & grateful for having a job in hand instead of expecting any pay-rise. With real estate sector under pressure & oil pricing unpredictably swinging to & fro, any expectation of a pay-rise will turn out to be merely a wishful thinking & not a reality.
Every year there's a fantastical new report on how salaries in the UAE are expected to go up by x percent.
Can we please stop this nonsense and just admit that salaries have stagnated for pretty much the last 3 years?
There is absolutely no one I know here in Dubai who has been given a pay rise since 2014.
Yet the cost of living has gone up by almost 100% in the same period.
I haven't received a salary increment in last 4 years, it would be nice if this changes soon, but highly unlikely given the current scenario ... anyway it does not hurt to dream of good times in the future