Another report says Mid-East salaries will stay flat this year


Another day, another report that Middle East salaries are set to remain relatively flat this year.

Last month, we reported on a survey from Hays, which said that 82% of employers in the GCC expect salaries to either remain flat, or increase by no more than 5%, in 2017. This conflicted with a report the week earlier that said the majority of employees in the region were actually expecting a salary bump at some point this year.

Now, though, it looks more like Hays’ report was more on the money. A new report from consultancy Robert Walters says that Middle East salaries are only expected to increase by an average of 2% over the course of 2017.

“The UAE job market was adversely affected by a variety of factors over the course of 2016, including political instability in the Middle East, the low price of oil, China stagnation and a strong dollar. This resulted in employers focusing on optimisation of supply chain functions due to changes in consumer behavior,” said Jason Grundy, country head for the Middle East at Robert Walters.

That said, the consultancy did say that, towards the end of the year, things might start picking up. Robert Walters said that economic growth ahead of Expo 2020 should increase demand for talent across a range of professions. However, in sales and marketing positions, the firm said that salary growth would be dependent on the price of oil.

“If oil prices move above $60 a barrel in 2017, it will lead to an increase in government spending and a rise in consumer confidence,” said Grundy.

“Organisations will therefore gradually grow their sales and marketing functions to help them drive sales and profitability.”

In terms of what to expect in 2017, the procurement and supply chain professions are slated to see the strongest salary growth (3%) of the year. Sales and marketing professionals’ salaries are expected to grow by just 1.5% in 2017.

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