DUBAI, 19 February 2007 — The cost of living in the Gulf is dampening whatever raise in salary is gained, leading to an increasingly disgruntled workforce and a more volatile job market. Salaries in the region went up by 15 percent on an average in 2006, but the cost of living shot up by 24 percent — and living expenses went up the most in the UAE, according to a survey.
The survey, jointly conducted by the Middle East’s jobsite Bayt.com and leading market research firm YouGovSiraj, revealed that employers in Qatar and Kuwait awarded the highest pay rises in 2006, an average of 17 percent. The UAE was second on the list with 15 percent, but the Emirates recorded the biggest cost-of-living jump in the Gulf, 28 percent, according to the survey.
Regionally, workers in the private sector fared better than their government peers, earning an average pay hike of around 17 percent compared to approximately 13 percent for public sector employees, according to the white paper titled “GCC Human Resources Overview — Salaries, Cost of Living and Loyalty”
“This new study presents a clearer picture of labor market conditions in the Gulf than ever before and uses the additional expertise of a recognized market research leader, YouGovSiraj. The rapidly growing regional economy is creating new human resources challenges, and employers and employees alike need to understand their implications,” Bayt.com CEO Rabea Ataya said.
The banking and finance sector awarded the most generous raises in 2006, increasing salaries on average by 19.5 percent. Healthcare professionals (excluding doctors) were among the least pampered, receiving only 11.2 percent more pay last year.
“A detailed questionnaire was shared with more than 270,000 registered members of the Bayt.com website, representing the broadest cross-section of working professionals in the region,” YouGovSiraj CEO Nassim Ghrayeb said.
“The survey addresses conditions, perceptions and behavior in each GCC country and in over 20 different industry sectors,” he said.
Despite double-digit raises, most Gulf professionals want more — and employees in the UAE and Bahrain consider themselves the most deserving. The raise they felt they “deserved” in 2006 was put at 33 percent reflecting the higher cost of living in both countries.
Employees were the least demanding in Saudi Arabia, where the average “deserved” pay rise was recorded as 27 percent. Overall, public sector employees in the GCC feel the most unsung, claiming they justified a pay hike of 39 percent on average in 2006.
Gulf countries with large expatriate workforce appear the most volatile. In Qatar, 37 percent of the survey’s respondents said they would consider going back to their home country or relocating elsewhere in the Gulf to boost pay.
Dubai stands to prosper from the itchy feet of disgruntled Gulf workers. Despite the cost of living in the UAE shooting up 28 percent according to the Bayt.com/YouGovSiraj survey, nearly half of the polled respondents said Dubai is their preferred place of work.
But the UAE’s many attractions might not include more cash. Kuwait comes in with the highest average monthly salary in the Gulf, $3,100.
