GCC sees record wages inflation
UAE, 21 Sep 2005
last year, according to a report from recruitment agency Gulf Talent.
Workers in the UAE experienced a slightly below average increase of 6.5 per cent over the last 12 months, while the highest wage inflation was seen in Qatar, which experienced a jump of 7.9 per cent, according to the survey.
Saudi Arabia was just behind with 7.4 per cent; Kuwait saw a 6.9 per cent increase, while Bahrain and Oman experienced 6.3 per cent and 5.9 per cent growth respectively.
The survey suggests that wage increases are in keeping with inflation in the UAE, which is expected to be around 6.5 per cent this year. Within the UAE, Dubai had the highest average increase with 7.4 per cent, followed by Abu Dhabi at 6.1 per cent and Sharjah with just three per cent.
Gulf Talent carried out a similar survey earlier this year in March that suggested wage increases were stagnant, and were not keeping up with inflation, but its latest research suggests that has changed.
"The latest findings, based on a survey of 3,000 professionals across the GCC, provide a strong indication that the rising inflation and increases in public sector pay packages are finally having an impact on private sector compensation," said the survey.
"With higher income from oil exports, several GCC governments have taken the lead in increasing salary levels, which has put increased pressure on the private sector to follow suit," it said.
According to the report banking and finance, construction and real estate saw the biggest increase, while healthcare and education were the lowest.