Employment & Salary Trends in the Gulf 1

Executive Summary

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.
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
regions 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 regions heavy reliance
on expatriate talent from India, the accelerating
economic growth in India can also pose an
increasing challenge to employers.
GulfTalent
April 2015

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

Employment & Salary Trends in the Gulf 1

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

2
 Economic and Political Background
rowth comparison graph Oil price graph
owth Stable economic growth Crude Oil Price
Crude Price
USDper
USD perBarrel
Barrel(Brent)
(Brent)

India The regional economy continues

7.8% to grow at a
120
stable pace, faster than most of the world, though
China 7.2% 100
below the levels seen in the fast-growing markets
GCC 3.5%
of India and China. Continued investment by 80
US 3.2%
GCC governments in infrastructure development 60
EU remains
1.3% a key driver of growth and job creation,
40
% with projects such as Gulf Railway, Jeddah Metro
Russia 2012 2013 2014 2015

andGrowth
GDP Qatar stadiums driving significant
comparison graph activity. Source: World Bank
Oil price graph
conomic Intelligence Unit,
GDP Growth Source: World Bank
t, Asian Development
GDP Growth Bank Crude Oil Price
%, 2015
%, 2015 Regional conflicts
USD per Barrel (Brent)

India 7.8% 120

With the exception of Bahrain, Gulf countries have
China 7.2% been islands 100
of stability in a region torn by tension
GCC 3.5% and conflict. However, on-going violent conflict in
80
erence box ( 7US
cm X 4 cm)
3.2%
Middle
Syria, Iraq East Keyand
and Yemen, Hotspot
tensions2014
elsewhere
60
in Middle
Lebanon and Egypt have had some impact,
East Key Hotspots
EU 1.3%
some cases40benefiting the Gulf countries by
in 2014
-4.0% Russia 2012 2013 2014 2015
Middle East
increasing the Key
flow Hotspot
of talent
Syria
2014to them.
and capital
Source: Economist Intelligence Unit, Kuwait
Source: Economic
Economist, Asian Intelligence
DevelopmentUnit,
Bank Middle East Source:
Key Conflict
Lebanon Iraq Zones
World Bank Bahrain
Economist, Asian Development Bank Middle
2015 East Key Hotspots
2014 Qatar
UAE
Low oil prices Egypt Oman
Syria
Kuwait
Saudi Arabia
With the region heavily dependent on exports Lebanon Iraq Bahrain
Jordan Qatar
of crude oil, the collapse in the oil price during Yemen UAE
Sizethe
reference
second halfbox ( 7 cm
of 2014 has X 4 cm)growth
reduced Middle East Key Hotspot 2014
Egypt Oman
expectations. For the time being, damage Saudi Arabia
Middle East Key Hotspots
seems to be limited to the oil sector, and some 2014
government-linked projects in Bahrain and Yemen
Syria
Oman, the more vulnerable countries with smaller Kuwait
Lebanon Iraq Bahrain
reserves. Others such as Saudi Arabia have Qatar
UA
seen almost no impact, as they draw on their
Egypt Oman
massive cash reserves to maintain spending and Saudi Arabia
investment.
Yemen

Employment & Salary Trends in the Gulf 3

 Recruitment Trends
Recruitment volume graphs
Saudi Arabia leading job creation Recruitment Volume
Volume by
by Location
Location
Percentage ofvacancies
Percentage of vacanciesadvertised
advertisedonon GulfTalent
GulfTalent * *
Across the region, more firms increased Kuwait/Bahrain/
Oman 11% 10% 11% 8% 9%
headcount last year than those who reduced it.
16% 10%
Qatar 16% 17% 20%
Saudi Arabia topped the list, where 72% of firms
19% 23%
reported expansion.
Employment growthBahrain
graph had the lowest net Saudi Arabia 20% 18%
20%
job creation, with only 22% of firms expanding. 17% 17%
Recruitment
22%
UAE (Exc: Dubai)
18% volume
14% graphs
Employment Growth by Country
Employment Growth by Country
Net percentage of firms which increased
Recruitment
Employment growth graph Volume by Location
Net percentage of firms which increased headcount, 2014 Percentage of vacancies advertised on GulfTalent 41%
headcount 37% 35% 40%
31%
Dubai by Country
Employment Growth
Saudi Arabia 72% Kuwait/Bahrain/Oman 11% 10% 11% 8% 9
Net percentage of firms which increased
headcount
2010 2011 2012 2013 2014 16% 10
Qatar 16% 17%
Oman 61% * *Based
Based onon
130,000 vacancies
130,000 advertised
vacancies on GulfTalent.com
advertised on
20%
website
over the specified period. 23
GulfTalent.com over the specified period. 18% 19%
UAE 59% Saudi
SourceArabia
: GulfTalent Saudi Arabia 20% 72% 20%
17
Source : GulfTalent
Oman 61% 18% 17%
Qatar 38% UAE (Ex: Dubai) 22% 14%

Healthcare
UAE
and education expanding
59%
Bahrain 22% 40% 4
37% 35%
31%
Kuwait 0%
N/A* Healthcare
Qatar has recently been the fastest
38% Dubai

* Insu cient data for Kuwait growing sector across

Bahrain 22% the region, with
201082%
2011of 2012 2013 20
* Insufficient
Source: data for Kuwait.
GulfTalent Survey of HR Managers
Source: GulfTalent Survey of HR Managers firms increasing headcount in 2014, followed
Kuwait 0%
N/A*
by education at 80%. Growing populations and
* Insu cient data for Kuwait
Source: Based on 130,000 vacancies advertised on
Dubai growth. Qatar slowdown government
Source: investment
GulfTalent Survey of are driving
over theboth
HR Managers
GulfTalent.com sectors.
specified period. Prevalenc
online recruitment varies
New regulations making health insurance across the region.
While Saudi Arabia remains the biggest net
mandatory on employers is also contributing to
creator of jobs, the UAE and particularly Dubai
the sectors expansion. Worst performing
Nationalization charthas
continued to enjoy
Employment a recovery,
growth witnessing
by sector been the oil and gas sector, where
Nationalisation only 34%
Pressure of
on Employers
a healthy increase in their share of regional
Employment Growth by Sector firms created newPercentage
jobs and of employers reporting nationalisation
some have been in
Net % of firms activity.
which increased headcount in 2014 key human resource challenge in 2014
recruitment Qatar on the other hand saw
Employment growth by sector
the process of downsizing.
a slowdown in recruitment during
Healthcare 82%
2014, driven by Oman 95%
Employment
EmploymentGrowth
GrowthbybySector
Sector
uncertainty over its World Cup award,
Education 80% and internal Net
Net %
% of
of firms which increased
firms which increased headcount in
headcount
Saudi Arabia in 2014
2014 84%
pending
Media &reviews on the awarding
Marketing 80%of projects.
Healthcare Bahrain 82% 55%
Transport & Logistics 78%
Education Kuwait 80% 53%
Engineering 77%
Media & Marketing 80%
Retail & Consumer 72% UAE 28%
Transport & Logistics 78%
Banking 63%
Engineering Qatar 77%
6%
Travel & Hospitality 36%
Retail & Consumer 72%
Oil & Gas 34% Source: GulfTalent Survey of HR Managers
Banking 63%
Source: GulfTalent Survey of HR Managers Travel & Hospitality 36%
Oil & Gas 34%

Source: GulfTalent
Source: GulfTalent Survey
Survey of HR
of HR Managers
Managers

4
Recruitment volume graphs
Recruitment Volume by Location
Percentage of vacancies advertised on GulfTalent

Kuwait/Bahrain/Oman 8% 9%

11% 10% 11%
Nationalisation pressure 10%
17% 16%
Qatar 16% 20%

In their effort to create jobs It is difficult to attract Indian

18% for their
19%citizens, GCC
23%
Saudi Arabia 20%
20%
governments continue to push companies
17%
18%
17% to talent. Nowadays they have
22% 14%
UAE (Ex:
replace Dubai)
some of their expatriate employees with ample opportunities back

nationals. Attracting and37%retaining nationals
41% while
31% 35% 40%
home, with good salaries.
maintainingDubai
the mix of skills needed to operate
their business remains a major
2010 2011 2012challenge for
2013 2014 General Manager
employers. The pressure is greatest in Oman and Saudi-based Engineering Firm
Saudi Arabia, where almost all employers cited
Source: Based on 130,000 vacancies advertised on
nationalisation
GulfTalent.com over as
theaspecified
key challenge. It remains
period. Prevalence of the
online
leastrecruitment
in Qatar varies
and theacross
UAE,thewhere
region. nationalisation
Visa restrictions
targets are significantly lower and confined to
certain sectors only, and are less strictly enforced. Governments in the GCC are increasingly
Nationalization chart
Nationalisation restricting the choice of nationalities available
NationalisationPressure
Pressureonon
Employers
Employers
Percentage
Percentageof
of employers
employers reporting
reporting nationalisation as aa key
nationalisation as for companies to employ. In particular, visa
key human
human resource
resource challenge
challenge in 2014
in 2014
applications for nationals of countries facing
Oman 95% tensions or civil war, such as Syria and Egypt, are
Saudi Arabia 84% frequently rejected or delayed. This is limiting the
Bahrain 55% ability of employers to absorb the talent seeking

Kuwait 53% to escape the conflict zones.

UAE 28%

Qatar 6% We had a great candidate

Source: GulfTalent Survey of HR Managers
Source: GulfTalent Survey of HR Managers from Syria but his visa was
Competition from India

As the Indian economy continues to grow at a

rejected and we lost him.
HR Manager

UAE-based Construction Firm
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.

Employment & Salary Trends in the Gulf 5

Mobility

UAE attracts most expatriates Retention

RetentionofofExpatriates
Expatriates
Percentage
Percentage of of expatriates
expatriates within
within country
country whowho wish
wish to to
remain
remain there
there
The UAE continues to maintain its status as the
2014 2013
most attractive location in the Gulf for expatriates. UAE 88%
88%
Over 60% of professionals surveyed chose the 60%
Kuwait 61%
UAE as the place where they would like to work.
Bahrain 55% 49%

Furthermore, 88% of expatriates already residing Saudi Arabia 50% 45%

in the country expressed a desire to remain Qatar 48% 43%

there, the highest retention rate among all GCC Oman 30% 47%

countries. The countrys popularity stems from

Source:
Source: GulfTalent
GulfTalent Survey Survey
attractive employment opportunities, excellent
infrastructure and relatively liberal social norms.
Attraction of Expatriates Oman ban drives expats away
Attraction
% of Expatriates
of GCC-based expats outside each country who
wish
% of to relocate into
GCC-based it outside each country who wish to
expats
relocate into it Oman recently introduced restrictions on
expatriates changing employment. While helping
UAE
60%
employers retain staff, it is driving some expats

40%
to seek opportunities elsewhere in the Gulf. As a
Qatar result, the countrys retention rate has fallen to the
20% Saudi Arabia lowest in the region.
Oman
Kuwait

0% Bahrain
2009 2010 2011 2012 2013 2014
Expatriate resignations have
Source: GulfTalent Survey
Source: GulfTalent Survey
gone down in our company,
Qatar popular, but retention low but anyone who is resigning
Qatar remains the second most popular
destination for expatriates, though its popularity
now is leaving the country.
HR Manager

has declined sharply since its peak in 2010 when Oman-based Multinational
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.

6
 Salaries

Pay rises accelerating Private SectorSalary

Private Sector Salary Increase
Increase by Country
by Country

During 2014, Gulf salaries rose at their highest 2014 2013

average rate since the financial crisis and they are Oman 7.6% 7.4%

forecast to increase at an even higher rate during Saudi Arabia 7.5% 6.7%

2015. This is largely driven by stable economic Qatar 6.5% 5.6%

growth, competition for local and expatriate UAE 6.2% 5.3%

talent, rising cost of living in some countries, Bahrain 5.9% 4.0%

and government measures such as pay rises for Kuwait 5.7% 5.4%

nationals and raising the level of minimum wage. Source: GulfTalent Survey
Source: GulfTalent Survey
GCCAverage
GCC Average Salary
Salary Increase
Increase
2007 - 2015
2007 - 2015
Construction tops pay rises
11.4%

9.0%
Salary
Among Increase
sectors,byconstruction
Job Categoryfirms saw the highest
%, 2014-2015
6.9%
6.2% 6.1% 6.2% 5.9%
6.7% pay rises during 2014, as governments across
5.5%
the region 7.3%
HR continued their massive investment in
Engineering
infrastructure projects. 7.1%

2007 2008 2009 2010 2011 2012 2013 2014 2015* IT 6.8%
* Forecast
* Forecast Healthcare
Finance and education, despite6.8%
their rapid
Source: GulfTalent Surveys
Source: GulfTalent Survey expansion,
Sales continued to see some6.7%
of the lowest
pay Admin
rises. Banking also saw lower than average
6.1%
Oman tops salary rises pay rises.
Marketing 5.9%

During 2014, Oman had the regions highest Salary

Source:Increase
GulfTalentby Industry
Survey
Salary Increase by Industry
Percentage,2014-2015
Percentage, 2014
salaryIncrease
e Sector Salary increase, averaging
by Country 7.6%. In the aftermath
of the Arab spring,
2014
the country has witnessed the
2013 Construction 7.8%
Oman
emergence of powerful7.6%
trade7.4%
unions embarking Telecoms & IT 7.3%
on collective bargaining7.5%
with employers on a Logistics 7.2%
Arabia 6.7%
scale never previously seen in the Gulf. Retail 6.8%
Qatar 6.5% 5.6%
Oil & Gas 6.8%
UAE 6.2%second5.3%
Saudi Arabia saw the highest average Real Estate 5.8%
ahrain salary increase, as competition
5.9% to attract and
4.0%
Healthcare 5.6%
Kuwait retain Saudi talent drove up
5.7% wages.
5.4% Banking 5.1%

e: GulfTalent Survey Hospitality 5.1%

Education 5.0%

Source: GulfTalent Survey

Source: GulfTalent Survey

Increase by Job Category Change in Value of Gulf Currencies (Pegged to

4-2015 USD) 2014-2015, indexed to Jan 2014
1.3 vs. Euro

HR 7.3%
1.2
ering 7.1% vs. British
Employment & Salary Trends Pound
in the Gulf 7
IT 6.8% 1.1
ance 6.8%
 Salary Increase by Industry
e Sector Salary Increase by Country Percentage, 2014-2015

2014 2013 Construction 7.8%

Salary Increase by Industry
Oman 7.6%
Private Sector Salary Increase 7.4%
by Country Telecoms &Percentage,
IT 2014-2015 7.3%

Arabia 7.5% 6.7% Logistics 7.2%

2014 2013 Construction 7.8%
Retail 6.8%
Qatar 6.5% 5.6%
High pay rises for HR
Oman 7.6% 7.4% Strong Oil
dollar
& Gas
Telecoms & IT
6.8%
7.3%
UAE 6.2% 5.3% 7.5% 6.7% Logistics 7.2%
Saudi Arabia Real Estate 5.8%
Among job categories, HR professionals enjoyed Pegged to the US dollar,
RetailGulf currencies have 6.8%
ahrain Qatar 5.9% 4.0%
6.5% 5.6% Healthcare 5.6%
the highest pay rises, signaling the return of HR to risen in value overOilthe past year against several 6.8%
& Gas
Kuwait UAE 5.7% 5.4%
6.2% 5.3% Banking 5.1%
prominence as companies seek to expand their major currencies.RealThis has helped increase the5.8%
Estate
e: GulfTalent Survey
Bahrain 5.9% 4.0% Hospitality 5.1%
talent base. Healthcare
value of Gulf salaries 5.6%
for expatriates, particularly
5.4% Education 5.0%
Kuwait 5.7% Banking 5.1%
those sending a significant share of their income
Marketing professionals
Source: GulfTalent Survey surveyed have reported Source: GulfTalent Survey
Hospitality 5.1%
back home in remittances.
the lowest average pay rises, possibly as a result Education 5.0%
ofby
Increase theJob
shift to digital, reducing companies need to
Category Change in Value
Change in Value ofofGulf
Source:
Gulf Currencies
Currencies
GulfTalent
(Pegged
(Pegged
Survey to to USD)
4-2015 2014-2015, indexedindexed
USD) 2014-2015, to Jan 2014
to Jan 2014
invest in traditional media and marketing. vs. Euro
1.3
Salary Increase by Job Category Change in Value of Gulf Currencies (Pegged to
HR Salary 7.3%
Increase by Job Category USD) 2014-2015, indexed to Jan 2014
%, 2014-2015
%, 2014 1.2
ering 7.1% 1.3 vs. British vs. Euro
Pound
IT HR 6.8% 7.3%
1.1
1.2
ance Engineering 6.8% 7.1% vs. British
Pound
IT 6.8% 1
Sales 6.7% 1.1
vs. Philippine Peso
Finance 6.8% vs. Indian Rupee
dmin 6.1%
0.9 1
Sales 6.7% 2014
eting 5.9% vs. 2015
Philippine Peso
Admin 6.1% Source: OANDA0.9 vs. Indian Rupee
ce: GulfTalent Survey Source: OANDA
Marketing 5.9% 2014 2015

Source: GulfTalent
Source: Survey
GulfTalent Survey Source: OANDA

8
 2015 Outlook

Expected Average Pay Rise by sector

Rising salaries Expected Average Pay Rise by Sector
%, 2015 Forecast
%, 2015 Forecast
Salaries across the region are forecast to rise in 2015 Forecast 2014

Construction 10.0% 7.8%

2015 at an average rate of 6.9%, compared to
Logistics 7.7% 7.2%
6.7% in the previous year. Qatar is expected to
Retail 6.8% 6.8%
see the highest average pay increase at 8.3%,
Healthcare 6.3% 5.6%
driven by rising cost of living and the need to
Real Estate 6.2%
attract talent to the country. Employers in Oman, 7.3%
Telecoms & IT 5.9%
under pressure from an increasingly unionised 5.0%
Education 5.8%
workforce, plan to award the second highest Banking 5.6% 5.1%

average pay rise at 7.2%. This is followed by Saudi Hospitality 5.5% 5.1%

Arabia and the UAE at 7.1%. Oil & Gas 5.4% 6.8%

ExpectedAverage
Average Pay Rise Employment Growth by Country
Expected Pay Rise Source: GulfTalent
Source: GulfTalent Surveys of HRofManagers
Surveys
Net percentage of firmsHR managers
increasing
Forecast
%, 2015 Forecast
headcount
2015 Forecast 2014 2015 Forecast 2014

Qatar 8.3% 6.5%

Moderate hiring activity
Qatar 66% 38%

Oman 7.2% 7.6% Saudi Arabia 53% 72%

Employers in most GCC countries reported plans
61%
Saudi Arabia 7.1% 7.5%
jobs in 2015, though 49%
to create newOman mostly at a
UAE 7.1% 59%
6.2% lower rate thanUAE 47%
the previous year. The highest
Bahrain 7.0% 5.9% Kuwait reported is38% N/A*
headcount increase for Qatar with 66%
Kuwait 5.0% 5.7% 22%
of firms reporting 38%
Bahrainan intent to increase headcount
Source: GulfTalent Surveys
Source: GulfTalent Surveys in 2015, Source:
followedGulfTalent
by Saudi Survey of HRwhere
Arabia Managers
the figure
* Insu cient data for Kuwait
was 53%. The lowest expectations of headcount
Construction tops pay rises increase were for Kuwait and Bahrain.

Across the EmploymentGrowth

Employment Growthbyby Country
Country
pected Average Pay region,
Rise the construction sector is Net percentage
Net percentage of
of firms
firms increasing headcount
2015 Forecast
expected to offer the highest average pay rise at headcount
2015 Forecast 2014 2015 Forecast 2014
10%, as employers compete for talent to deliver Qatar 66% 38%
Qatar 8.3% 6.5%
large-scale infrastructure projects. Not surprisingly, 72%
Oman 7.2% 7.6% Saudi Arabia 53%
the oil and gas sector is expected to have the 61%
udi Arabia 7.1% 7.5% Oman 49%
lowest average pay rise, with slower growth 59%
UAE 7.1% 6.2% UAE 47%
and job losses in the sector around the world N/A*
Bahrain 7.0% 5.9% Kuwait 38%
shifting the supply-demand balance in favour of 22%
Kuwait 5.0% 5.7% Bahrain 38%
employers.
ource: GulfTalent Surveys Source: GulfTalent Survey of HR Managers
Source: GulfTalent Survey of HR Managers
* Insu cient data for Kuwait
* Insufficient data for Kuwait

Employment & Salary Trends in the Gulf 9

 Employment Growth by Country
Expected Average Pay Rise Net percentage of firms increasing
%, 2015 Forecast
headcount
2015 Forecast 2014 2015 Forecast 2014

Oman 11.0% 7.6% Qatar 66% 30%

Qatar 10.2% 6.5% Oil price chart

Saudi Arabia 53% 70%

Saudi Arabia
Healthcare tops hiring 7.1% 7.5% OilPrice
Oil price Needed
Needed to
toBalance
Oman BalanceBudget
Budget 49% 57%
USD
6.2% USD 61%
UAE 7.1% UAE 47%
The healthcare sector has the highest forecast
5.9% Budget April 2015 price Budget 86%
Bahrain 7.0% Kuwait 38% deficit
surplus = $60
for headcount increase in 2015 with 79% of 5.7%
firms 43%
Kuwait 5.0% Bahrain 38%
expecting to hire more talent. Oil and Gas and Kuwait 54
Source: GulfTalent Surveys Source: GulfTalent Survey of HR Managers
Telecom/IT sectors reported the lowest forecast, Qatar 60

with only around one-third of firms planning UAE 77

expansion.
Oil price chart
Employment growth by industry Oman
Oil price Needed to Balance Budget
104

Employment
EmploymentGrowth
Growthbyby
Sector
Sector USD
KSA 106
Net
Netpercentage
percentageofoffirms
firmsincreasing
increasing headcount
headcount Bahrain Budget April 2015 price 125 Budget
2015 Forecast 2014 surplus deficit
= $56
Healthcare 79% 63% Source: IMF
Kuwait 54
50% Source: IMF
Real Estate 77%
Qatar 60
Retail 71% 75% Indian economic growth
UAE 77
Hospitality 63% 74%
The Indian economy, already fast growing,104
Oman has
Construction 54% 62%
received a major boost from plunging crude oil
Banking 54% 33% KSA 106
prices as well as the economic reforms planned
Logistics 53% 70% Bahrain 125
by the newly elected government. As a result, it is
Oil & Gas 37% 21%
28%
widely expected to have the fastest growth rate
Telecom & IT 24% Source: IMF
of any major economy, outpacing Chinas growth
Source: GulfTalent Survey of HR Managers
Source: GulfTalent Survey of HR Managers for the first time since 1999. This is likely to make
it even tougher than before for Gulf employers
Oil uncertainty to attract professionals from India, putting further

The impact of the oil price slump has so far been

Salary rise forecast
upward pressure on salaries.
Salary Rise Forecast
limited to some project cuts in Oman and Bahrain, Salary
2015 % Rise Forecast
2015 %
with most governments using their reserves to
10.6%
maintain spending. If the price recovers by the
end of the year, as some analysts expect, there 8.0%
6.9%
is unlikely to be any major impact on the regional
economy. However, if prices persist at current
levels into 2016, governments will inevitably feel 2.8% 2.5%
the need to reduce spending which will feed
India China GCC US UK
through to the rest of the economy and likely
reduce employment opportunities. The possibility Source:
Source:Hay
Hay Group, AonHewitt,
Group, Aon Hewitt, GulfTalent
GulfTalent

of a recession cannot be ruled out.

10
Country Highlights
Saudi Arabia UAE
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 Kuwait
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 Bahrain
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
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
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
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
Employment & Salary Trends in the Gulf 11
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)

Country Saudi Arabia Kuwait Qatar Oman Bahrain UAE

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

Country Saudi Arabia Kuwait Qatar Oman Bahrain UAE

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)

Country Saudi Arabia Kuwait Qatar Oman Bahrain UAE

2015* 30.6 4.2 2.3 4.1 1.4 8.9

* Forecast

Source: Economist Intelligence Unit, GulfTalent Surveys

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Research Methodology

This research report was based on GulfTalents 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

research@gulftalent.com

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.

Employment & Salary Trends in the Gulf 13

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Employment & Salary Trends in the Gulf 15