Gulf salaries to rise steadily in 2009 - study
UK, 12 Oct 2008
DUBAI - Private sector salaries in the Gulf are seen increasing at an average of 11.4 per cent next year, the same pace as in 2008, despite a global economic slowdown, a report by a recruitment firm showed today.
The study by GulfTalent said that pay hikes in the world’s top oil exporting region may start to ease in the next few months, depending on the strength of the US dollar and the impact of the western market’s downturn on developing economies.
Most human resource managers out of the 29,000 professionals surveyed in the region - where currencies are pegged to the greenback - believed salary increases next year would be similar to this year.
"This is consistent with the current fundamentals of the economy, with the oil price still at historically high levels, inflation rampant across the region... despite the global slowdown," the report said.
Inflation and talent shortages drove salaries up 13.6 per cent in the UAE, the report said. Inflation in the UAE rose 11.1 per cent to a 20-year high last year, the latest official figures showed.