Persian Gulf salaries to rise by 6.6 per cent in 2011

2010 largest increases in human resources and retail sector
|hrreporter.com|Last Updated: 02/07/2011

Salary increases in the Persian Gulf region were higher than the rates of inflation in 2010, resulting in improving living standards for many, according to

Employment and Salary Trends in the Gulf 2010-2011

.

The survey of 32,000 professionals and 1,400 companies across the six Persian Gulf states by recruitment firm GulfTalent.com found private sector salaries increased by an average of 6.1 per cent in 2010 and are projected to increase by 6.6 per cent in 2011.

Among countries, Qatar and Saudi Arabia had the highest pay rises in 2010 at 6.8 per cent and 6.7 per cent respectively. Oman was in third place with 6.4 per cent, followed by Kuwait at 5.7 per cent.

The United Arab Emirates (UAE) and Bahrain saw the smallest increases at 5.2 per cent and 4.9 per cent respectively, according to the survey of.

Although much lower than the double-digit increases of 2008, the pay rises were all higher than the rates of inflation,

However, an estimated 55 per cent of professionals did not receive any pay increase at all.

Across the region, with consumer spending picking up, the retail sector saw the highest pay rise at 6.4 per cent, while education had the smallest increase at 3.8 per cent.

Among job categories, human resource professionals saw the highest raise at 7.1 per cent. Many executives told GulfTalent.com that, with their companies increasingly focused on performance, the HR function had assumed a much greater significance. Lawyers had the smallest increases at 4.3 per cent.

According to the study, pay increases were largely driven by employers’ efforts to retain their top performers, growing demand for skill in Qatar and Saudi Arabia, as well as continued growth in Asia, the main source of talent for the Gulf.

With increasingly attractive career opportunities in their home countries, Asian professionals working in the Gulf received pay rises of 6.1 per cent compared with just 3.2 per cent for Western professionals.

Salaries in the booming Indian economy grew at 11.1 per cent in 2010, compared with just 2.4 per cent in the United Kingdom, where unemployment remains high following the financial crisis.

The Gulf's employment market is expected to continue growing at a moderate pace, aided by global economic recovery, rising oil prices and continued government spending on infrastructure projects. Sixty-one per cent of companies surveyed expected to increase headcount in 2011, compared to nine per cent who planned staff cuts.

Salary increases and inflation

                            

2010 Salary    2011 Salary    2010 Inflation    2011 Inflation

Qatar                   6.80%             7.2%               -1.9%                2.1%

Saudi Arabia       6.70%              7.0%                5.40%              6.30%

Oman                  6.40%              7.0%                4.0%                4.5%

Kuwait                 5.70%              5.9%                3.9%                4.8%

UAE                     5.2%                6.3%                1.6%                2.1%

Bahrain                4.9%                5.1%                2.5%                3.0%

Overall                 6.1%                6.6%                       

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