employment and salary trends in the gulf 2015

1Employment & Salary Trends in the Gulf


Despite the slump in oil prices and conflicts in

neighbouring countries, the Gulf region continues

to enjoy a stable pace of economic growth, with

most firms maintaining employment levels or

increasing headcount. Most governments have

so far used their large reserves to keep spending

and investment plans at previous levels.

The impact of the oil price fall has so far been

limited to firms in the oil and gas sector, some

of which have been downsizing. There has also

been some slowdown in Bahrain and Oman,

the countries with lower cash reserves where

governments have started to reduce their

investment on infrastructure projects.

Across the region, the fastest growing sector is

healthcare, driven by a combination of growing

populations, massive government investment,

and regulatory changes making health insurance

mandatory for employers.

While the region remains a major importer of

expatriate talent, the need to create jobs for

a fast-growing local population continues. As

such, governments are increasing the pressure

on employers to reduce their reliance on an

expatriate workforce and fill a higher share of

their roles with nationals. This is most notable in

Saudi Arabia and Oman, where nationalisation

is the biggest human resource challenge for

employers.

Conflicts and tensions across the broader Middle

East region have increased the supply of talent

from the affected countries to the Gulf. However,

several Gulf countries have imposed restrictions

on nationals of war-torn countries seeking

employment in the Gulf, preventing employers

from absorbing this pool of talent.

Pay rises across the region averaged 6.7% in

2014, the highest average increase since the

financial crisis, and are projected to accelerate

further in 2015 to 6.9%. This is driven by the

competition for talent and rising cost of living

and, in the case of Oman, increasing unionisation

of the workforce. At the same time, the strength

of the US dollar, to which most Gulf currencies

are pegged, is helping make Gulf salaries more

attractive for expatriates, reducing upward

pressure on wages.

The UAE, and particularly Dubai, remain the

region’s most popular destinations for expatriates.

Qatar ranks second in popularity with newcomers,

but has very low retention as the cost of living and

the ban on expatriates switching employers drives

many to leave.

The outlook for 2015 remains positive, with

employers in most sectors expecting to grow.

However, much depends on what happens to

the oil price. With the region’s heavy reliance

on expatriate talent from India, the accelerating

economic growth in India can also pose an

increasing challenge to employers.

GulfTalent

April 2015

Executive Summary

2

Contents

Economic and Political Background 3

Recruitment Trends 4

Mobility 6

Salaries 7

2015 Outlook 9

Country Highlights 11

Appendix: Useful Information 12

Research Methodology 13

About GulfTalent 14

.


Stable economic growth

The regional economy continues to grow at a

stable pace, faster than most of the world, though

below the levels seen in the fast-growing markets

of India and China. Continued investment by

GCC governments in infrastructure development

remains a key driver of growth and job creation,

with projects such as Gulf Railway, Jeddah Metro

and Qatar stadiums driving significant activity.

GDP Growth %, 2015

Source: Economist Intelligence Unit, Economist, Asian Development Bank

Low oil prices

With the region heavily dependent on exports

of crude oil, the collapse in the oil price during

the second half of 2014 has reduced growth

expectations. For the time being, damage

seems to be limited to the oil sector, and some

government-linked projects in Bahrain and

Oman, the more vulnerable countries with smaller

reserves. Others such as Saudi Arabia have

seen almost no impact, as they draw on their

massive cash reserves to maintain spending and

investment.

Crude Oil PriceUSD per Barrel (Brent)

Source: World Bank

Regional conflicts

With the exception of Bahrain, Gulf countries have

been islands of stability in a region torn by tension

and conflict. However, on-going violent conflict in

Syria, Iraq and Yemen, and tensions elsewhere

in Lebanon and Egypt have had some impact,

in some cases benefiting the Gulf countries by

increasing the flow of talent and capital to them.

Middle East – Key Conflict Zones2015

Economic and Political Background

-4.0%

1.3%

3.2%

3.5%

7.2%

7.8%

EU

US

GCC

China

India

Source: Economic Intelligence Unit, Economist, Asian Development Bank

Russia

GDP Growth comparison graph

40

60

80

100

120

2012 2013 2014 2015

Size reference box ( 7 cm X 4 cm)

Oil price graph

Crude Oil Price USD per Barrel (Brent)

Source: World Bank

Middle East – Key Hotspot 2014

Middle East – Key Hotspots 2014

Qatar

Bahrain

Saudi Arabia

Syria

Egypt

Yemen

Oman

Iraq Kuwait

Lebanon

UAE

GDP Growth %, 2015

-4.0%

1.3%

3.2%

3.5%

7.2%

7.8%

EU

US

GCC

China

India

Source: Economic Intelligence Unit, Economist, Asian Development Bank

Russia

GDP Growth comparison graph

40

60

80

100

120

2012 2013 2014 2015

Size reference box ( 7 cm X 4 cm)

Oil price graph

Crude Oil Price USD per Barrel (Brent)

Source: World Bank



Qatar

Bahrain

Saudi Arabia

Syria

Egypt

Yemen

Oman

Iraq Kuwait

Lebanon

UAE

GDP Growth %, 2015



Qatar

Bahrain

Saudi Arabia

Syria

Egypt

Yemen

Oman

Iraq Kuwait

Lebanon

UAE Jordan

4

Recruitment Trends

Saudi Arabia leading job creation

Across the region, more firms increased

headcount last year than those who reduced it.

Saudi Arabia topped the list, where 72% of firms

reported expansion. Bahrain had the lowest net

job creation, with only 22% of firms expanding.

Employment Growth by CountryNet percentage of firms which increased headcount, 2014

* Insufficient data for Kuwait. Source: GulfTalent Survey of HR Managers

Dubai growth. Qatar slowdown

While Saudi Arabia remains the biggest net

creator of jobs, the UAE and particularly Dubai

continued to enjoy a recovery, witnessing

a healthy increase in their share of regional

recruitment activity. Qatar on the other hand saw

a slowdown in recruitment during 2014, driven by

uncertainty over its World Cup award, and internal

pending reviews on the awarding of projects.

Recruitment Volume by Location Percentage of vacancies advertised on GulfTalent *

* Based on 130,000 vacancies advertised on GulfTalent.com website over the specified period. Source : GulfTalent

Healthcare and education expanding

Healthcare has recently been the fastest

growing sector across the region, with 82% of

firms increasing headcount in 2014, followed

by education at 80%. Growing populations and

government investment are driving both sectors.

New regulations making health insurance

mandatory on employers is also contributing to

the sector’s expansion. Worst performing has

been the oil and gas sector, where only 34% of

firms created new jobs and some have been in

the process of downsizing.

Employment Growth by SectorNet % of firms which increased headcount in 2014

Source: GulfTalent Survey of HR Managers

72%

61%

59%

38%

22%

0%

Saudi Arabia

Oman

UAE

Qatar

Bahrain

Kuwait N/A*

Employment Growth by Country Net percentage of firms which increased headcount

* Insu cient data for Kuwait Source: GulfTalent Survey of HR Managers

Recruitment Volume by Location Percentage of vacancies advertised on GulfTalent

Dubai

UAE (Ex: Dubai)

Saudi Arabia

Kuwait/Bahrain/Oman

Source: Based on 130,000 vacancies advertised on GulfTalent.com over the specified period. Prevalence of online recruitment varies across the region.

Employment growth graph

Recruitment volume graphs

34%

36%

63%

72%

77%

78%

80%

80%

82%

Oil & Gas

Travel & Hospitality

Banking

Retail & Consumer

Engineering

Transport & Logistics

Media & Marketing

Education

Healthcare

Employment Growth by Sector Net % of firms which increased headcount in 2014


Employment growth by sector Nationalisation Pressure on Employers Percentage of employers reporting nationalisation as a key human resource challenge in 2014


95%

84%

55%

53%

28%

6%

Oman

Saudi Arabia

Bahrain

Kuwait

UAE

Qatar

Nationalization chart

Qatar

41% 40% 35% 37% 31%

17% 17% 14%

18% 22%

23% 19% 20%

18% 20%

10% 16% 20% 17% 16%

9% 8% 11% 10% 11%

2014 2013 2012 2011 2010

Recruitment Volume by Location Percentage of vacancies advertised on GulfTalent *

Dubai

UAE (Exc: Dubai)

Saudi Arabia

Kuwait/Bahrain/ Oman

* Based on 130,000 vacancies advertised on GulfTalent.com over the specified period. Source : GulfTalent


Qatar

41% 40% 35% 37% 31%

17% 17% 14% 18% 22%

23% 19% 20%

18% 20%

10% 16% 20% 17% 16%

9% 8% 11% 10% 11%

2014 2013 2012 2011 2010

72%

61%

59%

38%

22%

0%

Saudi Arabia

Oman

UAE

Qatar

Bahrain

Kuwait N/A*




Dubai

UAE (Ex: Dubai)

Saudi Arabia

Kuwait/Bahrain/Oman




34%

36%

63%

72%

77%

78%

80%

80%

82%

Oil & Gas


Banking

Retail & Consumer

Engineering


Media & Marketing

Education

Healthcare





95%

84%

55%

53%

28%

6%

Oman

Saudi Arabia

Bahrain

Kuwait

UAE

Qatar


Qatar

41% 40% 35% 37% 31%

17% 17% 14%

18% 22%

23% 19% 20%

18% 20%

10% 16% 20% 17% 16%

9% 8% 11% 10% 11%

2014 2013 2012 2011 2010


Nationalisation pressure

In their effort to create jobs for their citizens, GCC

governments continue to push companies to

replace some of their expatriate employees with

nationals. Attracting and retaining nationals while

maintaining the mix of skills needed to operate

their business remains a major challenge for

employers. The pressure is greatest in Oman and

Saudi Arabia, where almost all employers cited

nationalisation as a key challenge. It remains the

least in Qatar and the UAE, where nationalisation

targets are significantly lower and confined to

certain sectors only, and are less strictly enforced.

Nationalisation Pressure on EmployersPercentage of employers reporting nationalisation as a key human resource challenge in 2014


Competition from India

As the Indian economy continues to grow at a

rapid pace and create attractive employment

opportunities for its citizens, employers in the

Gulf are finding it increasingly difficult to attract

professionals from India, traditionally a major

source of talent for them. With the newly elected

Indian government embarking on massive

economic reforms expected to lead to more job

creation, the issue is likely to intensify.

“It is difficult to attract Indian

talent. Nowadays they have

ample opportunities back

home, with good salaries.”General Manager

Saudi-based Engineering Firm

Visa restrictions

Governments in the GCC are increasingly

restricting the choice of nationalities available

for companies to employ. In particular, visa

applications for nationals of countries facing

tensions or civil war, such as Syria and Egypt, are

frequently rejected or delayed. This is limiting the

ability of employers to absorb the talent seeking

to escape the conflict zones.

“We had a great candidate

from Syria but his visa was

rejected and we lost him.”HR Manager

UAE-based Construction Firm

72%

61%

59%

38%

22%

0%

Saudi Arabia

Oman

UAE

Qatar

Bahrain

Kuwait N/A*




Dubai

UAE (Ex: Dubai)

Saudi Arabia

Kuwait/Bahrain/Oman




34%

36%

63%

72%

77%

78%

80%

80%

82%

Oil & Gas


Banking

Retail & Consumer

Engineering


Media & Marketing

Education

Healthcare





95%

84%

55%

53%

28%

6%

Oman

Saudi Arabia

Bahrain

Kuwait

UAE

Qatar


Qatar

41% 40% 35% 37% 31%

17% 17% 14%

18% 22%

23% 19% 20%

18% 20%

10% 16% 20% 17% 16%

9% 8% 11% 10% 11%

2014 2013 2012 2011 2010

6

UAE attracts most expatriates

The UAE continues to maintain its status as the

most attractive location in the Gulf for expatriates.

Over 60% of professionals surveyed chose the

UAE as the place where they would like to work.

Furthermore, 88% of expatriates already residing

in the country expressed a desire to remain

there, the highest retention rate among all GCC

countries. The country’s popularity stems from

attractive employment opportunities, excellent

infrastructure and relatively liberal social norms.

Attraction of Expatriates% of GCC-based expats outside each country who wish to relocate into it

Source: GulfTalent Survey

Qatar popular, but retention low

Qatar remains the second most popular

destination for expatriates, though its popularity

has declined sharply since its peak in 2010 when

it was chosen to host the World Cup. The country

also has one of the lowest retention rates, as the

high cost of living and the ban on expatriates

switching jobs prompt many to leave.

Retention of ExpatriatesPercentage of expatriates within country who wish to remain there


Oman ban drives expats away

Oman recently introduced restrictions on

expatriates changing employment. While helping

employers retain staff, it is driving some expats

to seek opportunities elsewhere in the Gulf. As a

result, the country’s retention rate has fallen to the

lowest in the region.

“Expatriate resignations have

gone down in our company,

but anyone who is resigning

now is leaving the country.”HR Manager

Oman-based Multinational

Mobility

Source: Economist Intelligence Unit

3% 4% 5% 6% 7% 8% 9%

10% 11%

2008 2009 2010 2012 2013 2014

France

U.K.

Canada

Australia

Unemployment Rate in Western Countries 2008-2014

Unemployment in western countries

0%

20%

40%

60%

2009 2010 2011 2012 2013 2014

Attraction of Expatriates % of GCC-based expats outside each country who wish to relocate into it

UAE

Qatar Saudi Arabia

Oman Kuwait

Bahrain


Oman

Retention of Expatriates Percentage of expatriates within country who wish to remain there

2013 2014 88%

60%

49%

45%

43%

47%


88%

61%

55%

50%

48%

30%

UAE

Kuwait

Bahrain

Saudi Arabia

Qatar

Oman

9.0%

11.4%

6.2% 6.1% 5.5% 6.2% 5.9%

6.7% 7.6%

2007 2008 2009 2010 2011 2012 2013 2014 2015*


GCC Average Salary Increase 2007 - 2015

* Forecast


Pay rises accelerating

During 2014, Gulf salaries rose at their highest

average rate since the financial crisis and they are

forecast to increase at an even higher rate during

2015. This is largely driven by stable economic

growth, competition for local and expatriate

talent, rising cost of living in some countries,

and government measures such as pay rises for

nationals and raising the level of minimum wage.


* Forecast Source: GulfTalent Surveys

Oman tops salary rises

During 2014, Oman had the region’s highest

salary increase, averaging 7.6%. In the aftermath

of the Arab spring, the country has witnessed the

emergence of powerful trade unions embarking

on collective bargaining with employers on a

scale never previously seen in the Gulf.

Saudi Arabia saw the second highest average

salary increase, as competition to attract and

retain Saudi talent drove up wages.

Private Sector Salary Increase by Country


Construction tops pay rises

Among sectors, construction firms saw the highest

pay rises during 2014, as governments across

the region continued their massive investment in

infrastructure projects.

Healthcare and education, despite their rapid

expansion, continued to see some of the lowest

pay rises. Banking also saw lower than average

pay rises.

Salary Increase by IndustryPercentage, 2014


Salaries

9.0%

11.4%

6.2% 6.1% 5.5% 6.2% 5.9%

6.7% 6.9%

2007 2008 2009 2010 2011 2012 2013 2014 2015*



* Forecast

7.4%

6.7%

5.6%

5.3%

4.0%

5.4%

7.6%

7.5%

6.5%

6.2%

5.9%

5.7%

Oman

Saudi Arabia

Qatar

UAE

Bahrain

Kuwait


2013 2014


7.8%

7.3%

7.2%

6.8%

6.8%

5.8%

5.6%

5.1%

5.1%

5.0%

Construction

Telecoms & IT

Logistics

Retail

Oil & Gas

Real Estate

Healthcare

Banking

Hospitality

Education

Salary Increase by Industry Percentage, 2014-2015


Salary Increase by Job Category %, 2014-2015

7.3%

7.1%

6.8%

6.8%

6.7%

6.1%

5.9%

HR

Engineering

IT

Finance

Sales

Admin

Marketing


0.9

1

1.1

1.2

1.3

2014 2015

vs. Indian Rupee

vs. British Pound

vs. Euro

vs. Philippine Peso

Change in Value of Gulf Currencies (Pegged to USD) 2014-2015, indexed to Jan 2014

Source: OANDA

7.4%

6.7%

5.6%

5.3%

4.0%

5.4%

7.6%

7.5%

6.5%

6.2%

5.9%

5.7%

Oman

Saudi Arabia

Qatar

UAE

Bahrain

Kuwait


2013 2014


7.8%

7.3%

7.2%

6.8%

6.8%

5.8%

5.6%

5.1%

5.1%

5.0%

Construction

Telecoms & IT

Logistics

Retail

Oil & Gas

Real Estate

Healthcare

Banking

Hospitality

Education




7.3%

7.1%

6.8%

6.8%

6.7%

6.1%

5.9%

HR

Engineering

IT

Finance

Sales

Admin

Marketing


0.9

1

1.1

1.2

1.3

2014 2015

vs. Indian Rupee

vs. British Pound

vs. Euro

vs. Philippine Peso


Source: OANDA

8

High pay rises for HR

Among job categories, HR professionals enjoyed

the highest pay rises, signaling the return of HR to

prominence as companies seek to expand their

talent base.

Marketing professionals surveyed have reported

the lowest average pay rises, possibly as a result

of the shift to digital, reducing companies’ need to

invest in traditional media and marketing.

Salary Increase by Job Category%, 2014


Strong dollar

Pegged to the US dollar, Gulf currencies have

risen in value over the past year against several

major currencies. This has helped increase the

value of Gulf salaries for expatriates, particularly

those sending a significant share of their income

back home in remittances.


Source: OANDA

7.4%

6.7%

5.6%

5.3%

4.0%

5.4%

7.6%

7.5%

6.5%

6.2%

5.9%

5.7%

Oman

Saudi Arabia

Qatar

UAE

Bahrain

Kuwait


2013 2014


7.8%

7.3%

7.2%

6.8%

6.8%

5.8%

5.6%

5.1%

5.1%

5.0%

Construction

Telecoms & IT

Logistics

Retail

Oil & Gas

Real Estate

Healthcare

Banking

Hospitality

Education




7.3%

7.1%

6.8%

6.8%

6.7%

6.1%

5.9%

HR

Engineering

IT

Finance

Sales

Admin

Marketing


0.9

1

1.1

1.2

1.3

2014 2015

vs. Indian Rupee

vs. British Pound

vs. Euro

vs. Philippine Peso


Source: OANDA

7.4%

6.7%

5.6%

5.3%

4.0%

5.4%

7.6%

7.5%

6.5%

6.2%

5.9%

5.7%

Oman

Saudi Arabia

Qatar

UAE

Bahrain

Kuwait


2013 2014


7.8%

7.3%

7.2%

6.8%

6.8%

5.8%

5.6%

5.1%

5.1%

5.0%

Construction

Telecoms & IT

Logistics

Retail

Oil & Gas

Real Estate

Healthcare

Banking

Hospitality

Education




7.3%

7.1%

6.8%

6.8%

6.7%

6.1%

5.9%

HR

Engineering

IT

Finance

Sales

Admin

Marketing


0.9

1

1.1

1.2

1.3

2014 2015

vs. Indian Rupee

vs. British Pound

vs. Euro

vs. Philippine Peso


Source: OANDA


Rising salaries

Salaries across the region are forecast to rise in

2015 at an average rate of 6.9%, compared to

6.7% in the previous year. Qatar is expected to

see the highest average pay increase at 8.3%,

driven by rising cost of living and the need to

attract talent to the country. Employers in Oman,

under pressure from an increasingly unionised

workforce, plan to award the second highest

average pay rise at 7.2%. This is followed by Saudi

Arabia and the UAE at 7.1%.

Expected Average Pay Rise%, 2015 Forecast

Source: GulfTalent Surveys

Construction tops pay rises

Across the region, the construction sector is

expected to offer the highest average pay rise at

10%, as employers compete for talent to deliver

large-scale infrastructure projects. Not surprisingly,

the oil and gas sector is expected to have the

lowest average pay rise, with slower growth

and job losses in the sector around the world

shifting the supply-demand balance in favour of

employers.

Expected Average Pay Rise by Sector%, 2015 Forecast

Source: GulfTalent Surveys of HR Managers

Moderate hiring activity

Employers in most GCC countries reported plans

to create new jobs in 2015, though mostly at a

lower rate than the previous year. The highest

headcount increase reported is for Qatar with 66%

of firms reporting an intent to increase headcount

in 2015, followed by Saudi Arabia where the figure

was 53%. The lowest expectations of headcount

increase were for Kuwait and Bahrain.

Employment Growth by CountryNet percentage of firms increasing headcount

Source: GulfTalent Survey of HR Managers * Insufficient data for Kuwait

2015 Outlook

6.5%

7.6%

7.5%

6.2%

5.9%

5.7%

Expected Average Pay Rise %, 2015 Forecast

2014 2015 Forecast

8.3%

7.2%

7.1%

7.1%

7.0%

5.0%

Qatar

Oman

Saudi Arabia

UAE

Bahrain

Kuwait


38%

72%

61%

59%

N/A*

22%

Employment Growth by Country Net percentage of firms increasing headcount

2014 2015 Forecast

66%

53%

49%

47%

38%

38%

Qatar

Saudi Arabia

Oman

UAE

Kuwait

Bahrain

Source: GulfTalent Survey of HR Managers * Insu cient data for Kuwait

6.5%

7.6%

7.5%

6.2%

5.9%

5.7%


2014 2015 Forecast

8.3%

7.2%

7.1%

7.1%

7.0%

5.0%

Qatar

Oman

Saudi Arabia

UAE

Bahrain

Kuwait


38%

72%

61%

59%

N/A*

22%


2014 2015 Forecast

66%

53%

49%

47%

38%

38%

Qatar

Saudi Arabia

Oman

UAE

Kuwait

Bahrain

Source: GulfTalent Survey of HR Managers * Insu cient data for Kuwait

10.0%

7.7%

6.8%

6.3%

6.2%

5.9%

5.8%

5.6%

5.5%

5.4%

Construction

Logistics

Retail

Healthcare

Real Estate

Telecoms & IT

Education

Banking

Hospitality

Oil & Gas

Expected Average Pay Rise by sector %, 2015 Forecast

Source: GulfTalent Surveys of HR managers

7.8%

7.2%

6.8%

5.6%

7.3%

5.0%

5.1%

5.1%

6.8%

2015 Forecast 2014

10

Healthcare tops hiring

The healthcare sector has the highest forecast

for headcount increase in 2015 with 79% of firms

expecting to hire more talent. Oil and Gas and

Telecom/IT sectors reported the lowest forecast,

with only around one-third of firms planning

expansion.

Employment Growth by SectorNet percentage of firms increasing headcount


Oil uncertainty

The impact of the oil price slump has so far been

limited to some project cuts in Oman and Bahrain,

with most governments using their reserves to

maintain spending. If the price recovers by the

end of the year, as some analysts expect, there

is unlikely to be any major impact on the regional

economy. However, if prices persist at current

levels into 2016, governments will inevitably feel

the need to reduce spending which will feed

through to the rest of the economy and likely

reduce employment opportunities. The possibility

of a recession cannot be ruled out.

Oil Price Needed to Balance BudgetUSD

Source: IMF

Indian economic growth

The Indian economy, already fast growing, has

received a major boost from plunging crude oil

prices as well as the economic reforms planned

by the newly elected government. As a result, it is

widely expected to have the fastest growth rate

of any major economy, outpacing China’s growth

for the first time since 1999. This is likely to make

it even tougher than before for Gulf employers

to attract professionals from India, putting further

upward pressure on salaries.

Salary Rise Forecast2015 %

Source: Hay Group, Aon Hewitt, GulfTalent

125

106

104

77

60

54

Bahrain

KSA

Oman

UAE

Qatar

Kuwait

Oil price Needed to Balance Budget USD

Source: IMF

April 2015 price = $60

Oil price chart

Budget surplus

Budget deficit

10.6%

8.0% 6.9%

2.8% 2.5%

India China GCC US UK

Salary Rise Forecast 2015 %

Source: Hay Group, Aon Hewitt, GulfTalent

Salary rise forecast

7.6%

6.5%

7.5%

6.2%

5.9%

5.7%


2014 2015 Forecast

11.0%

10.2%

7.1%

7.1%

7.0%

5.0%

Oman

Qatar

Saudi Arabia

UAE

Bahrain

Kuwait


30%

70%

57%

61%

86%

43%


2014 2015 Forecast

66%

53%

49%

47%

38%

38%

Qatar

Saudi Arabia

Oman

UAE

Kuwait

Bahrain


Employment Growth by Sector Net percentage of firms increasing headcount

2014 2015 Forecast

79%

77%

71%

63%

54%

54%

53%

37%

28%

Healthcare

Real Estate

Retail

Hospitality

Construction

Banking

Logistics

Oil & Gas

Telecom & IT

63%

50%

75%

74%

62%

33%

70%

21%

24%


Employment growth by industry

125

106

104

77

60

54

Bahrain

KSA

Oman

UAE

Qatar

Kuwait

Oil price Needed to Balance Budget USD

Source: IMF

April 2015 price = $56

Oil price chart

Budget surplus

Budget deficit


Saudi Arabia

• The Saudisation drive continues under the

Nitaqat system, with employers receiving

benefits and penalties based on the Saudistion

level achieved in their workforce

• Return of foreign-educated Saudis to the

Kingdom is providing a fresh pool of talent

• A new online system, Abshir, has radically

simplified visa application and processing

Qatar

• Construction sector is expanding, with many

government infrastructure projects finally

starting in preparation for the World Cup

• Under pressure from international media, the

government has increased enforcement of

employee rights, and has launched a Wage

Protection System, similar to the UAE

• Rise in real estate prices a growing concern

Oman

• Huge pressure on employers to hire nationals,

including at senior level

• Growing trade union activity forcing employers

to offer higher salaries

• Significant cuts in government spending,

particularly on oil-related projects

• New restrictions on expats, such as limits on

switching jobs, is leading to an exodus of expats

to the rest of the Gulf

UAE

• Visa restrictions on nationals from war-torn

countries have made it difficult to source talent

from these countries

• Mandatory health insurance is forcing all firms to

extend this benefit to employees

• Increasing cost of living, particularly housing,

a growing concern for residents and their

employers

Kuwait

• Increasing cost of living is making it difficult for

employees to manage expenses.

• The government has cut its budget in response

to falling oil prices, likely to lead to some

slowdown in the economy

• Visa restrictions on certain nationalities are

pushing employers to explore alternative

sources of talent

Bahrain

• Stringent implementation of nationalisation

policy with penalties for non-compliant

employers

• Cuts in government spending due to the slump

in oil revenues

• Minimum wage introduced for Bahrainis in

private sector, subsidised by the government

Country Highlights

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Appendix: Useful Information

Salary Rise by Country(Percentage rise in Base Salary)

Country Saudi Arabia Kuwait Qatar Oman Bahrain UAE

2013 6.7% 5.4% 5.6% 7.4% 4.0% 5.3%

2014 7.5% 5.7% 6.5% 7.6% 5.9% 6.2%

2015* 7.1% 5.0% 8.3% 7.2% 7.0% 7.1%

Economic Growth(Percentage real GDP change)


2013 3.7% 2.3% 5.5% 4.2% 3.9% 4.3%

2014 4.1% 2.2% 6.1% 3.9% 3.6% 4.5%

2015* 4.2% 2.0% 6.3% 3.8% 3.2% 4.3%

Inflation


2013 3.7% 2.8% 3.1% 1.3% 3.2% 1.1%

2014 2.7% 2.9% 3.0% 1.0% 2.7% 2.3%

2015* 2.6% 2.4% 3.5% 2.3% 1.9% 2.1%

Population(millions)


2015* 30.6 4.2 2.3 4.1 1.4 8.9

* Forecast

Source: Economist Intelligence Unit, GulfTalent Surveys


This research report was based on GulfTalent’s survey of 22,000 professionals

employed by large and medium sized firms in the GCC, a survey of 600

executives and human resource managers, interviews with top management of

a mix of private sector local and international companies, as well as review of

macroeconomic sources, including the World Bank, International Monetary Fund,

and the Economist Intelligence Unit.

All historical pay data included in the report is based on the information

provided by employees through an online English-language questionnaire,

suitably screened and statistically analysed to arrive at the preceding results.

Respondents were aged between 22-60 years old and earned an annual income

ranging from US$ 12,000 to US$ 200,000. Salary increases were measured

for employees in ongoing employment only, and excluded those who changed

employment during the period. Salary forecasts are based on estimates provided

by human resources managers. The survey was conducted during the period

December 2014 to April 2015.

Feedback, comments and queries regarding this report to be sent to

[email protected]

Research Methodology

Disclaimer & Copyright

This document should be used for information purposes only. GulfTalent makes no claims or warranties regarding the accuracy or completeness of the information provided, and accepts no liability for any use made thereof. The recipient is solely responsible for the use of the information contained herein.

© GulfTalent 2015. All rights reserved.

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