Expect a salary increase this year in the United Arab Emirates; wages are set to rise by an average of 4.6 per cent; note that this is an upsurge by 0.5% in real terms, and down from 0.9 per cent in 2016; it’s the lowest in a decade, tells Gulf News. The sluggish amount is the result of economic and monetary conditions.
The UAE pay hike for 2017 might not be the best, but there are good news. The salaries have risen for employees across all industry sectors, according to the Willis Towers Watson’s latest Salary Budget Planning Study, which provides salary increase budget information for a selection of economies across the globe. In addition, key professionals, depending on their role and responsibilities, with in-demand skills can expect a pay higher than others, even in the same sector.
If salaries are still growing even if at a slower rate, the job market is giving a small positive sign. At present, “the Gulf region is finally set to witness a stabilization in job cuts and a moderate rate of new job creation in 2017,” GulfTalent said in a statement sent to Gulf News.
This means the UAE job market is on the rebound after a challenging 2016, leading to the conclusion that the employment sector situation is improving, as told Gulf News Employment, and so the pay scales are slightly better there than in other countries in the Gulf Cooperation Council (GCC) region.
What does it mean for foreigners? Well, in general, the UAE offers far more generous salaries and benefits packages than other expat destinations around the region, as employers in the UAE are also more giving than their counterparts in the GCC and the MENA region at large with across-the-board pay increases and with zero income tax in place that has proved a major draw for expatriates, tells Shuchita Kapur/Emirates 24/7. A trend, as per ECA’s latest Salary Trends report, says is set to continue.
According to the World Economic Forum, HSBC bank got YouGov to survey nearly 27,000 expats from 190 countries and territories. Its annual expat explorer report reveals that among the best places in the world to live, work, and raise a family as a foreigner is the United Arab Emirates. “The results of its survey of expats’ experience of different countries, [took] into account questions on lifestyle, how easy it is to integrate with the local population, and how easy it is to set up a new life there.” Most are quite optimistic about their prospects this year as they are looking for new vacancies.
Given the positive mood about the UAE hiring activity in many occupations, the Hays 2017 GCC Salary and Employment Report noted that with the high demand for new talent, the slight pay increments and the salary hikes among employees in the country, some foreign workers are planning to stay longer, especially thanks to new possibilities to become naturalized from being long-term UAE residents. They are entrepreneurs and other hardworking individuals who have come “to support and care for the country as though it was their own,” as Sultan Sooud Al Qassemi mentions in a Gulf News post.