8% pay hike in UAE this year
Breaking from the previous predictions of a 4 or 5 per cent, a new report suggests better pay hikes for employees in the UAE.
The latest report from Morgan McKinley suggests professional job opportunities will rise by 8 -10 per cent across the Mena (Middle East and North Africa) region in 2014, with salaries expected to grow by a healthy 6 per cent to 8 per cent.
The decent pay hikes come after a relatively subdued 2012 where reverberations from the Eurozone crisis impacted on recruitment, economic confidence returned to the UAE in 2013.
As per the recruitment firm this restored positivity will continue to gain momentum throughout 2014, as the region focuses on the infrastructure, tourism and construction sectors, with Expo 2020 predicted to be a major factor in jobs growth.
“The survey points to a number of key growth areas for 2014, in terms of both job opportunities and salary levels. Rising levels of demand for consumer goods means that sales and marketing and supply chain professionals will be particularly sought after across the Gulf region. Elsewhere, we’re seeing a growth in opportunities for power generation professionals, triggered by the boom in activity across both the green and traditional energy sectors. Meanwhile, inward and local investment in sectors such as FMCG, packaging and chemicals is creating demand for manufacturing professionals, especially those with knowledge of techniques such as Six Sigma, as well as accountants, said Trefor Murphy, Morgan McKinley’s UAE managing director.
“With many new projects announced recently, there is a particular requirement for specialists in the construction oil & gas industries, with Iraq especially short of oil industry experts. Finally, with the three main credit rating agencies improving their ratings, the high level of business activity, and improvements in balance sheets and liquidity, the banking and financial services sector is experiencing buoyant employment levels,” he added.
A recently released 2014 salary guide by Robert Half Middle East said that salaries in the UAE and the Middle East are expected to go up by an average of 3.8 per cent next year,
This hike, the recruitment firm says is expected for starting salaries for professional occupations and will vary on the sector and of course the position and the circumstances of an individual.
Last month, a report by professional services firm Towers Watson predicted higher pay hikes. It said that employees in the UAE can expect an average pay increase of 5 per cent in 2014, adding that inflation will average 2.5 per cent, resulting in an increase in disposable income, or the real pay hike, to the tune of 2.5 per cent.
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