Employment & Salary Trends in the Gulf

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.

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

The impact of the oil price fall has so far been

of the workforce. At the same time, the strength

limited to firms in the oil and gas sector, some

of the US dollar, to which most Gulf currencies

of which have been downsizing. There has also

are pegged, is helping make Gulf salaries more

been some slowdown in Bahrain and Oman,

attractive for expatriates, reducing upward

the countries with lower cash reserves where

pressure on wages.

governments have started to reduce their

investment on infrastructure projects.

The UAE, and particularly Dubai, remain the

regions most popular destinations for expatriates.

Across the region, the fastest growing sector is

Qatar ranks second in popularity with newcomers,

healthcare, driven by a combination of growing

but has very low retention as the cost of living and

populations, massive government investment,

the ban on expatriates switching employers drives

and regulatory changes making health insurance

many to leave.

mandatory for employers.

The outlook for 2015 remains positive, with

While the region remains a major importer of

employers in most sectors expecting to grow.

expatriate talent, the need to create jobs for

However, much depends on what happens to

a fast-growing local population continues. As

the oil price. With the regions heavy reliance

such, governments are increasing the pressure

on expatriate talent from India, the accelerating

on employers to reduce their reliance on an

economic growth in India can also pose an

expatriate workforce and fill a higher share of

increasing challenge to employers.

their roles with nationals. This is most notable in

Saudi Arabia and Oman, where nationalisation
is the biggest human resource challenge for

GulfTalent

employers.

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

Contents
Economic and Political Background

Recruitment Trends

Mobility 6
Salaries 7
2015 Outlook

Country Highlights

11

Appendix: Useful Information

12

Research Methodology

13

About GulfTalent

14

Economic and Political Background

rowth comparison graph

owth

India
China
GCC
US

Oil price graph

Stable economic growth

Crude Oil Price

Crude
Price

The regional economy continues

to grow at a
7.8%

120

USDper
perBarrel
Barrel(Brent)
(Brent)
USD

stable pace, faster than most of the world, though

7.2%

below the levels seen in the fast-growing markets

3.5%

100

of India and China. Continued investment by

80

3.2%
GCC governments
in infrastructure development

60

1.3%
EU remains

a key driver of growth and job creation,

with
projects such as Gulf Railway, Jeddah Metro
Russia
andGrowth
Qatar stadiums
driving significant
GDP
comparison
graph activity.

conomic Intelligence Unit,

GDP
Growth
t, Asian
Development
Bank
GDP
Growth
%,
2015
%, 2015

2015

Oil price graph

Source: World Bank

Crude Oil Price

7.8%
7.2%
3.5%

erence box ( 7US

cm X 4 cm)
3.2%
-4.0%

2014

USD per Barrel (Brent)

Regional conflicts

China

EU

2013

Source: World Bank

India

GCC

40
2012

1.3%
Russia

Source: Economist Intelligence Unit,

Source:
Economic
Economist,
Asian Intelligence
DevelopmentUnit,
Bank
Economist, Asian Development Bank

Low oil prices

With the region heavily dependent on exports

120
With the exception
of Bahrain, Gulf countries have

been islands 100

of stability in a region torn by tension
and conflict. However, on-going violent conflict in
80

Middle
Keyand
Hotspot
Syria,
Iraq East
and Yemen,
tensions2014
elsewhere
60

in Middle
Lebanon
and Egypt have had some impact,
East Key Hotspots

in 2014
some cases40benefiting the Gulf countries by
2012

expectations. For the time being, damage

seems to be limited to the oil sector, and some

Kuwait
Bahrain
Qatar

2014

Egypt

Lebanon

Egypt

Syria

reserves. Others such as Saudi Arabia have

2015

Iraq
Jordan

UAE

Oman

Arabia
Saudi
Kuwait

Bahrain
Qatar

Yemen

UAE

Middle East Key Hotspot 2014

Oman

Saudi Arabia
Middle East Key Hotspots
2014

government-linked projects in Bahrain and

Oman, the more vulnerable countries with smaller

2014

Iraq Zones
Lebanon
Middle East
Source:
Key Conflict
World Bank
Middle
2015 East Key Hotspots

of crude oil, the collapse in the oil price during

second halfbox
of 2014
has X
reduced
Sizethe
reference
( 7 cm
4 cm)growth

2013

increasing
the
flow
of talent
and capital
Middle
East
Key
Hotspot
2014to them.
Syria

Yemen

Syria
Lebanon

Iraq

Kuwait
Bahrain
Qatar

seen almost no impact, as they draw on their

massive cash reserves to maintain spending and

Egypt

UA

Oman
Saudi Arabia

investment.
Yemen

Employment & Salary Trends in the Gulf

Recruitment Trends
Recruitment volume graphs
Recruitment Volume
Volume by
by Location
Location

Saudi Arabia leading job creation

Percentage
ofvacancies
vacanciesadvertised
advertisedonon
GulfTalent
Percentage of
GulfTalent
* *

Across the region, more firms increased

headcount last year than those who reduced it.

Kuwait/Bahrain/
Oman

10%

11%

Saudi Arabia topped the list, where 72% of firms

Qatar

16%

17%

reported expansion.
Employment
growthBahrain
graph had the lowest net

Saudi Arabia

20%

18%

job creation, with only 22% of firms expanding.

Employment Growth by Country

Net percentage of firms which increased

Net percentage of firms which increased headcount, 2014
headcount
72%

Saudi Arabia
Oman

61%

UAE

59%

Kuwait

20%

9%
10%

19%

23%
17%

17%
18%
volume
graphs
Recruitment
22%
14%
Recruitment
Volume by Location
Employment growth
graph
Percentage of vacancies advertised on GulfTalent
31%

37%

Kuwait/Bahrain/Oman 11%
10%
11%
Net percentage of firms which increased
2010
2011
2012
2013
2014
headcount
17%
Qatar 16%
20%
* *Based
onon
130,000
vacancies
advertised
on GulfTalent.com
website
Based
130,000
vacancies
advertised
on
over
the
specified
period.
GulfTalent.com over the specified period.
18%
Saudi
Saudi Arabia 20% 72%
SourceArabia
: GulfTalent
20%
UAE (Ex: Dubai)

61%
22%

Healthcare
and education expanding
UAE
59%

22%

41%

40%

35%

Dubai by Country
Employment Growth

Source
: GulfTalent
Oman

38%

Bahrain

20%

16%

UAE (Exc: Dubai)

Employment Growth by Country

Qatar

8%

11%

31%

18%

37%

8%

16%

10

19%

23

17%

17

40%

14%

35%

Qatar has recently been

38% Dubai
Healthcare
the fastest

N/A*
0%

* Insu cient data for Kuwait

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

growing
sector across
201082%
2011of 2012 2013 20
Bahrain
22% the region, with
firms increasing
headcount in 2014, followed
N/A*
Kuwait

0%

by education at 80%. Growing populations and

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
Employment
growth
by sector
a healthy increase in their share of regional
Employment Growth by Sector

Net % of firms activity.

which increased
headcount
in 2014
recruitment
Qatar on
the other
hand saw

a slowdown
in recruitment during
2014, driven by
Healthcare
82%
uncertainty
over its World Cup award,
and internal
Education
80%
pending
on the awarding
Media &reviews
Marketing
80%of projects.
78%

Transport & Logistics

77%

Engineering

72%

Retail & Consumer

63%

Banking
Travel & Hospitality
Oil & Gas

36%
34%

Source: GulfTalent Survey of HR Managers

* Insu cient data for Kuwait

Source: Based on 130,000 vacancies advertised on
Source:
GulfTalent
Survey of are
HR Managers
government
investment
driving
sectors.
GulfTalent.com
over theboth
specified
period. Prevalenc
online
recruitment
varies
across
the
region.
New regulations making health insurance

mandatory on employers is also contributing to

the sectors expansion.
Worst performing
has
Nationalization
chart

been the oil and gas

sector, where
only 34%
of
Nationalisation
Pressure
on Employers

employers reporting nationalisation

firms created newPercentage
jobs and of
some
have been in
key human resource challenge in 2014

Employment
growth by sector
the process of downsizing.
Oman

95%

Employment
EmploymentGrowth
GrowthbybySector
Sector

Net
which increased
increased
headcount in
in 2014
2014
Net %
% of
of firms
firms which
headcount
Saudi Arabia
Healthcare

Bahrain

82%

55%

Education

Kuwait

80%

53%

Media & Marketing

Transport & Logistics
Engineering
Retail & Consumer
Banking
Travel & Hospitality
Oil & Gas

UAE

80%
28%
78%

Qatar 77%
6%
72%
Source: GulfTalent Survey of HR Managers
63%
36%
34%

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

84%

Recruitment volume graphs

Recruitment Volume by Location

Percentage of vacancies advertised on GulfTalent

Kuwait/Bahrain/Oman

11%

10%

Nationalisation pressure

11%

17%

20%

Qatar

16%

8%

9%

16%

10%

23%
In their effort to create
jobs
19%citizens, GCC
18% for their
20%

Saudi Arabia

20%

It is difficult to attract Indian

governments continue to push companies

17% to
17%
22%

18%

14%

UAE (Ex:
Dubai)
replace
some
of their expatriate employees with

talent. Nowadays they have

ample opportunities back

nationals. Attracting and37%retaining

nationals
41% while
40%
35%

home, with good salaries.

31%

maintainingDubai
the mix of skills needed to operate

General Manager
Saudi-based Engineering Firm

their business remains

a major
challenge
for
2010 2011
2012
2013 2014
employers. The pressure is greatest in Oman and
Saudi Arabia, where almost all employers cited
Source: Based on 130,000 vacancies advertised on
nationalisation
key challenge.
It remains
GulfTalent.com
over as
theaspecified
period. Prevalence
of the
online
across
thewhere
region. nationalisation
leastrecruitment
in Qatar varies
and the
UAE,

targets are significantly lower and confined to

certain sectors only,
and are less strictly enforced.
Nationalization
chart
Nationalisation
onon
Employers
NationalisationPressure
Pressure
Employers

Percentage
as aa key
Percentageof
of employers
employers reporting
reporting nationalisation
nationalisation as
key
human
resource
challenge
in 2014
human
resource
challenge
in 2014
Oman

95%

Saudi Arabia

84%

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

Bahrain

55%

ability of employers to absorb the talent seeking

Kuwait

53%

to escape the conflict zones.

UAE
Qatar

28%
6%

Source: GulfTalent Survey of HR Managers

Source: GulfTalent Survey of HR Managers

Competition from India

As the Indian economy continues to grow at a
rapid pace and create attractive employment

We had a great candidate

from Syria but his visa was

rejected and we lost him.

HR Manager
UAE-based Construction Firm

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

Mobility
UAE attracts most expatriates

RetentionofofExpatriates
Expatriates
Retention

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

Percentage
expatriates
within
country
who
wish
Percentage
of of
expatriates
within
country
who
wish
to to
remain
there
remain
there
2014
UAE

88%

Kuwait

there, the highest retention rate among all GCC

Oman

49%

55%

45%

50%

Saudi Arabia
Qatar

60%

61%

Bahrain

in the country expressed a desire to remain

2013
88%

43%

48%

47%

30%

countries. The countrys popularity stems from

attractive employment opportunities, excellent
infrastructure and relatively liberal social norms.

Attraction of Expatriates

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

60%

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

40%
Qatar
Saudi Arabia

20%

Oman
0%
2009

Source:
GulfTalent
Source:
GulfTalent
Survey Survey

2010

2011

2012

2013

Kuwait
Bahrain
2014

Source: GulfTalent Survey

Source: GulfTalent Survey

result, the countrys retention rate has fallen to the

lowest in the region.

Expatriate resignations have

gone down in our company,

Qatar popular, but retention low

but anyone who is resigning

Qatar remains the second most popular

now is leaving the country.

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.

HR Manager
Oman-based Multinational

Salaries
Pay rises accelerating

Private Sector
Increase
by Country
Private
SectorSalary
Salary
Increase
by Country
2014

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

Oman

7.6% 7.4%

Saudi Arabia

7.5% 6.7%
6.5%

Qatar

2015. This is largely driven by stable economic

growth, competition for local and expatriate

nationals and raising the level of minimum wage.

5.3%

5.9%

Bahrain

and government measures such as pay rises for

5.6%

6.2%

UAE

talent, rising cost of living in some countries,

2013

4.0%
5.4%

5.7%

Kuwait
Source: GulfTalent Survey
Source: GulfTalent Survey

GCCAverage
Average Salary
Salary Increase
GCC
Increase
2007 - 2015
2007 - 2015

Construction tops pay rises

11.4%

Salary
Increase
Job Categoryfirms saw the highest
Among
sectors,byconstruction

9.0%
6.2%

6.1%

6.2%

5.5%

5.9%

6.7%

6.9%

%, 2014-2015

pay rises during 2014, as governments across

7.3%
HR continued their massive investment
the region
in
Engineering
infrastructure

Healthcare
their rapid
Finance and education, despite6.8%

* Forecast
* Forecast
Source: GulfTalent Surveys

expansion,
of the lowest
Sales continued to see some6.7%

Source: GulfTalent Survey

pay Admin
rises. Banking also saw lower
than average
6.1%

Oman tops salary rises

pay
rises.
Marketing

During 2014, Oman had the regions highest

7.6%. In the aftermath

Source:Increase
GulfTalentby
Survey
Salary
Industry

Percentage,2014-2015
2014
Percentage,

2013

Arabia
Qatar
UAE

ahrain

Kuwait

Telecoms & IT

on collective bargaining7.5%
with employers on a

7.3%

Logistics

6.7%

scale never previously seen in the Gulf.

7.2%
6.8%

Retail

5.6%

6.8%

Oil & Gas

6.2%second5.3%
Saudi Arabia saw the
highest average

Real Estate

4.0%
5.9%
salary increase, as
competition
to attract and

retain Saudi talent

drove up
5.7%

7.8%

Construction

emergence of powerful7.6%
trade7.4%
unions embarking
6.5%

5.9%

Salary Increase by Industry

of the Arab spring,

the country has witnessed the
2014
Oman

6.8%

IT

2007 2008 2009 2010 2011 2012 2013 2014 2015*

e Sector Salary
by Country
salaryIncrease
increase,
averaging

7.1%

projects.

Healthcare

5.4%
wages.

e: GulfTalent Survey

5.8%
5.6%

Banking

5.1%

Hospitality

5.1%

Education

5.0%

Source: GulfTalent Survey

Source: GulfTalent Survey

Change in Value of Gulf Currencies (Pegged to

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

Increase by Job Category

4-2015
HR

ering

7.3%
7.1%

IT

6.8%

ance

6.8%

1.2

vs. British

Employment & Salary Trends Pound

in the Gulf
1.1

Salary Increase by Industry

Percentage, 2014-2015

e Sector Salary Increase by Country

2014

7.5% 6.7%
2014
5.6%
6.5%

Arabia

UAE

ahrain

Kuwait

Construction

Salary Increase by Industry

7.6%
7.4%
Private Sector Salary Increase
by Country

Oman

Qatar

2013

2013

Oman
High pay
rises for HR
Saudi Arabia

6.2%

2014-2015
Telecoms &Percentage,
IT

7.6% 7.4%

5.3%

7.5% 6.7%

Among job categories, HR professionals enjoyed

Qatar

5.9%

4.0%
6.5%

5.6%

5.4%
6.2%

5.3%

5.9%

4.0%

the highest pay rises, signaling the return of HR to

UAE

5.7%

prominence as companies seek to expand their

e: GulfTalent Survey
Bahrain

talent base.

5.4%

5.7%

Kuwait

Marketing
professionals
Source: GulfTalent
Survey surveyed have reported
the lowest average pay rises, possibly as a result
ofby
theJob
shift
to digital, reducing companies need to
Increase
Category

4-2015
HR

ering

invest in traditional media and marketing.

Salary Increase by Job Category
7.3%

Salary
Increase by Job Category
%, 2014-2015
%, 2014

IT

HR

6.8%

ance

Engineering

6.8%

Sales

IT

6.7%

Finance

dmin

Sales

eting

Admin
ce: GulfTalent Survey
Marketing

6.1%
5.9%

Source:
GulfTalent
Survey
Source:
GulfTalent
Survey

7.3%
7.1%
6.8%
6.8%
6.7%
6.1%
5.9%

7.3%

7.2%
Logistics
Construction
7.8%
6.8%
Retail
7.3%
Telecoms & IT
Strong Oil
dollar
6.8%
& Gas
7.2%
Logistics
5.8%
Real Estate
Pegged
to the US dollar,
Gulf
currencies
have
6.8%
Retail
5.6%
Healthcare
risen in value overOilthe
past year against several 6.8%
& Gas
5.1%
Banking
Estate
major currencies.Real
This
has helped increase the5.8%
5.1%
Hospitality
5.6%
Healthcare
value of Gulf salaries
for expatriates, particularly
5.0%
Education
5.1%
Banking

those sending a significant share of their income

Source: GulfTalent
Survey
Hospitality

5.1%

Education

5.0%

back home in remittances.

Change
in Value
Value
Gulf
Currencies
(Pegged
Change in
ofofGulf
Currencies
(Pegged
to to USD)
Source:
GulfTalent
Survey
2014-2015,
indexedindexed
to Jan 2014
USD) 2014-2015,
to Jan 2014

1.3
1.2

7.1%

7.8%

vs. Euro
Change in Value of Gulf Currencies (Pegged to
USD) 2014-2015, indexed to Jan 2014
vs. British vs. Euro
1.3

Pound

1.1
1

1.2
1.1

vs. British
Pound

vs. Philippine Peso

vs. Indian Rupee
0.9
1
2014
vs. 2015
Philippine Peso
vs. Indian Rupee
Source: OANDA0.9
Source: OANDA
2014
2015
Source: OANDA

2015 Outlook
Expected Average Pay Rise by sector

Rising salaries

Expected Average Pay Rise by Sector

%, 2015 Forecast
%, 2015 Forecast

2015 Forecast

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%.

10.0%

Logistics

7.2%

7.7%

Retail

6.8%

Healthcare

6.3%

Real Estate

6.2%

Telecoms & IT

5.9%

Education

7.8%

6.8%
5.6%
7.3%
5.0%

5.8%

Banking

5.6%

5.1%

Hospitality

5.5%

5.1%

Oil & Gas

5.4%

6.8%

Employment
Growth
by Country
Source: GulfTalent
Surveys
of HRofManagers
Source:
GulfTalent
Surveys
managers
Net percentage
of firmsHR
increasing

ExpectedAverage
Average
Pay
Rise
Expected
Pay
Rise
Forecast
%, 2015 Forecast

2015 Forecast

2014
8.3% 6.5%

Qatar

Construction

2014

headcount

Moderate hiring
activity
Qatar

2014

2015 Forecast
66%

38%
72%

Oman

7.2%

7.6%

53%
Saudi Arabia
Employers
in most GCC countries reported
plans

Saudi Arabia

7.1%

7.5%

to create newOman
jobs in 2015, though 49%
mostly at a

61%

UAE

7.1%

6.2%

47%
lower rate thanUAE
the previous year. The
highest

59%

Bahrain

7.0%

5.9%

Kuwait reported is38%

headcount increase
for Qatar with 66%

5.7%

38%
Bahrainan intent to increase
of firms reporting
headcount

5.0%

Kuwait
Source: GulfTalent Surveys

N/A*
22%

GulfTalent
Survey
of HRwhere
Managers
in 2015, Source:
followed
by Saudi
Arabia
the figure

Source: GulfTalent Surveys

* Insu cient data for Kuwait

was 53%. The lowest expectations of headcount

increase were for Kuwait and Bahrain.

Construction tops pay rises

Across the
the construction sector is
pected Average
Pay region,
Rise

2015 Forecast

expected to offer the highest average pay rise at

2015 Forecast

2014

10%, as employers compete for talent to deliver

Qatar

EmploymentGrowth
Growthbyby
Country
Employment
Country

Net percentage
percentage of
of firms
firms increasing headcount
Net
headcount
2015 Forecast

8.3% 6.5%

Qatar

large-scale infrastructure projects. Not surprisingly,

66%
53%

Oman

7.2%

7.6%

Saudi Arabia

udi Arabia

7.1%

7.5%

Oman

UAE

7.1%

6.2%

UAE

Bahrain

7.0%

5.9%

Kuwait

38%

5.7%

Bahrain

38%

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

Kuwait

employers.

ource: GulfTalent Surveys

5.0%

49%
47%

2014
38%
72%
61%
59%
N/A*
22%

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

Employment Growth by Country

Expected Average Pay Rise

Net percentage of firms increasing

headcount
2015 Forecast

%, 2015 Forecast

2015 Forecast
11.0%

Oman
Qatar
Saudi
Arabia
Healthcare

2014

10.2%
7.1%

tops hiring

UAE

7.1%

Bahrain

7.0%

Qatar

6.5%

Saudi
Arabia
Oil price
chart

7.5%

OilPrice
price Needed
Needed
to
Oman
Oil
toBalance
BalanceBudget
Budget 49%
USD

6.2%

for headcount increase in 2015 with 79% of 5.7%

firms
5.0%

expecting to hire more talent. Oil and Gas and

Source: GulfTalent Surveys

Telecom/IT sectors reported the lowest forecast,

with only around one-third of firms planning

expansion.
Employment
growth by industry
Employment
Growth
byby
Sector
Employment
Growth
Sector

Net
Netpercentage
percentageofoffirms
firmsincreasing
increasing headcount
headcount
2014
2015 Forecast
Healthcare
Real Estate
Retail
Hospitality

79%

63%

77%

50%

71%

75%

63%

74%

Construction

54%

62%

Banking

54%

33%

Logistics

53%

70%

Oil & Gas

Telecom & IT

37%
28%

21%
24%

Source: GulfTalent Survey of HR Managers

Source: GulfTalent Survey of HR Managers

Qatar
UAE
Oman
KSA

57%
61%

47%
Budget
Budget
April 2015 price
38% deficit
Kuwait
surplus
= $60
38%
Bahrain
54
Source: GulfTalent Survey of HR Managers
60

Kuwait

Oil price chart

86%
43%

77
104

Oil price Needed to Balance Budget

USD

106
Budget
surplus

Bahrain
Source: IMF

Kuwait
Source: IMF
Qatar

April 2015 price 125 Budget

deficit
= $56
54

Indian economic growth

60
77

UAE

The Indian
economy, already fast growing,104
has
Oman
received a major boost from plunging crude oil
KSA

106

prices as well as the economic reforms planned

125

Bahrain

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

widely expected to have the fastest growth rate
Source: IMF

of any major economy, outpacing Chinas growth

for the first time since 1999. This is likely to make
it even tougher than before for Gulf employers

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

to attract professionals from India, putting further

upward pressure
on salaries.
Salary
rise forecast
Salary Rise Forecast

Salary
2015
% Rise Forecast
2015 %
10.6%

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%

US

UK

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.

10

India

China

GCC

Source:
AonHewitt,
Hewitt,
GulfTalent
Source:Hay
Hay Group,
Group, Aon
GulfTalent

30%
70%

53%

UAE

The healthcare sector has the highest forecast

5.9%
Kuwait

66%

7.6%

USD

2014

Country Highlights
Saudi Arabia
The Saudisation drive continues under the

UAE
Visa restrictions on nationals from war-torn

Nitaqat system, with employers receiving

countries have made it difficult to source talent

benefits and penalties based on the Saudistion

from these countries

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

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

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

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

switching jobs, is leading to an exodus of expats

to the rest of the Gulf

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%

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%

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%

Saudi Arabia

Kuwait

Qatar

Oman

Bahrain

UAE

4.2

2.3

4.1

1.4

8.9

Economic Growth

(Percentage real GDP change)

Country

Inflation
Country

Population
(millions)

Country
2015*

30.6

* Forecast
Source: Economist Intelligence Unit, GulfTalent Surveys

12

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

About GulfTalent
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all sectors and job categories. It is used by over 5 million professionals across
the region for finding top career opportunities. It is also the primary online
recruitment channel for over 6,000 companies, providing them access to both
local and expatriate talent.
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Employment & Salary Trends in the Gulf

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