Saudi Arabia and UAE 2017 salary increases highest in the region
Author(s): Media OutReachDubai, UAE, September 11, 2017: Saudi Arabia continues to lead the region in salary increases, according to a GCC-wide survey of 600 multi-national companies and locally-owned conglomerates by Aon, a leading global...
cityairnews
Sep 10, 2017 04:30
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The largest study of its kind in the Gulf region showed that, just as in 2016, actual salary increases remain lower than forecasted, influenced largely by a slow economy and low oil prices. The region-wide VAT, a tax on consumption, of 5% to be implemented in January 2018 is expected to help improve GDP growth; however, it will add to the rising inflation in the region, leading to cost pressures. While employers choose to remain conservative in the projected salary increase of 2018, we may witness an upside in the actual salary increase, thanks to an improving economic situation as a result of increased government spending, stabilized oil prices, and the effects of economic transformation programs.
| Including zeros and paycuts | ||
Country | 2017 Projected % | 2017 Actual % | 2018 Projected % |
Saudi Arabia | 4.9 | 4.4 | 4.5 |
Kuwait | 4.8 | 4.3 | 4.5 |
UAE | 4.6 | 4.3 | 4.3 |
Qatar | 4.5 | 4.2 | 4.5 |
Bahrain | 4.7 | 3.9 | 4.0 |
Oman | 4.6 | 3.9 | 4.3 |
Actual salary increases this year are highest for the Life Sciences (5.1%) and Hi-Tech sectors (4.6%), while the Construction/Engineering and Transportation/Logistics/
Robert Richter, GCC Compensation Survey Manager, Aon Hewitt Middle East, said: "Despite lower than projected salary increases this year, there is optimism in the region over KSA Vision 2030 and Expo 2020--with the potential for thriving new industries and a significant level of job creation in the region as a whole. With the stabilisation of oil prices, we can also expect the economy to stabilise and strengthen in the coming years."
About Aon's Salary Increase Survey
Aon has been conducting the salary increase survey on an annual basis across the globe for 30 years, and launched it in the Middle East for the first time in 2012. The report is free to participating organizations and available at a price of US$1,000 to others. The survey is part of Aon Hewitt's suite of evidence-based, research-led studies including Qudurat, Best Employers Middle East (BEME), Total Compensation Measurement (TCM™), and Top Companies for Leaders.
