Hundreds of companies across the UAE and the rest of the Gulf are expected to increase jobs and up employee salary levels this year, according to a new report.
Produced by leading Middle East online recruitment portal GulfTalent, the 2014 edition of the report, Employment and Salary Trends in the Gulf, says optimism is not only rising across the region but that the UAE is now seen as the top expatriate destination.
It’s yet further evidence for foreign investors and entrepreneurs sharpening up the business credit card and contemplating flying out to eyeball the investment and business opportunities on the ground.
The report backs up the latest Business Confidence Survey from the Department of Economic Development in Dubai showing rising confidence and optimism for sales and hiring this year. And further data, posted by online portal Bayt.com, which found almost two-thirds of firms surveyed, will either probably or definitely hire in the next three months, adds to the climate of positivity.
GulfTalent’s survey found that across the Gulf Cooperation Council (GCC) countries, more companies expect to increase their headcount in 2014 compared with last year. 75% of companies in Qatar will create jobs this year. The positive development is primarily due to the execution of major infrastructure projects gathering momentum, partly in preparation for the 2022 World Cup.
Next are companies in Saudi Arabia and the UAE, with 63% and 57% of companies looking to create jobs respectively. Even companies in Bahrain are showing signs of improvement in job creation as the political situation stabilises further: 30% of companies expect to increase their headcount, compared with only 9% in 2013.
Hospitality and retail will dominate job growth in 2014. 61% of companies in the hospitality sector are planning to increase their headcount, as they expect 2014 to be a year of growth for the industry. As regards the retail sector, 57% of firms will create jobs, driven by the region’s rapid population growth and increasing penetration of retail outlets in more remote locations.
Across most of the GCC, private sector salaries are forecast to rise at a faster pace in 2014 compared with the previous year. Oman, where employees are expected to enjoy an average pay increase of 8%, leads the field. Saudi Arabia has the second highest rate with a projected average increase of 6.8 %, followed by Qatar at 6.7% and the UAE at 5.9%. Kuwait and Bahrain are forecast to have the region’s lowest salary increases – projected at 5.8% and 3.9% respectively. While the salary increases are higher than the previous year, they continue to be below the levels seen before the recent economic downturn.
According to GulfTalent’s report, the UAE has further strengthened its position as the prime destination for expatriates in the GCC. Optimism about the country’s future has increased following Dubai’s economic recovery and successful bid for hosting the 2020 Expo. Expatriates also continue to value the UAE’s stability, especially as parts of the wider region remain plagued by tensions. Not surprisingly, Dubai and Abu Dhabi are the region’s most attractive cities, followed by Qatar’s capital, Doha. Bahrain, on the other hand, remains the least attractive destination for expatriates.
GulfTalent’s report is based on an online survey of 800 employers and 34,000 professionals, as well as 60 interviews with executives and HR professionals. The full version of the report is available for download free of charge from the company’s website here.
