Private sector salaries in the Kingdom of Bahrain are set to rise 5.1% in 2011, according to research released by GulfTalent.com, the leading online recruitment firm in the Middle East.
The findings of the report show the salaries in Qatar to increase by 7.2 per cent; Saudi Arabia 7 per cent; Oman 7 per cent; Kuwait 5.9 per cent; and the UAE 6.3 per cent.
The findings were published in GulfTalent.com’s sixth annual review of labour market trends entitled “Employment and Salary Trends in the Gulf 2010-2011” and were based on a survey of 32,000 professionals and 1,400 companies across the six Gulf states.
Among countries, Qatar and Saudi Arabia had the highest pay rises in 2010 at 6.8% and 6.7% respectively. Oman was in third place with 6.4%, followed by Kuwait at 5.7%.
The UAE and Bahrain saw the smallest increases at 5.2% and 4.9% respectively.
Although much lower than the double-digit increases of 2008, the pay rises were all higher than the rates of inflation, resulting in improving living standards for many. However, an estimated 55% of professionals did not receive any pay increase at all.
Across the region, with consumer spending picking up, the retail sector saw the highest pay rise at 6.4%, while education had the smallest increase at 3.8%.
According to the study, pay increases were largely driven by the employers’ efforts to retain their top performers, growing demand for skill in Qatar and Saudi Arabia, as well as continued growth in Asia, the main source of talent for the Gulf.
With increasingly attractive career opportunities in their home countries, Asian professionals working in the Gulf received pay rises of 6.1% compared with just 3.2% for Western professionals.
Based on GulfTalent.com’s study, the employment market in the Gulf is expected to continue growing at a moderate pace, aided by global economic recovery, rising oil prices and continued government spending on infrastructure projects. Around 61% of companies surveyed expected to increase headcount in 2011, compared to 9% who planned staff cuts.
GulfTalent.com’s study highlights the rising prominence of Qatar as a destination for professionals. The trend has been driven by fast-rising salaries, falling cost of living, growing employment opportunities and an improving international brand, which came to a grand finale with the country’s surprise qualification to host the 2022 Football World Cup.
GulfTalent.com’s survey of mobility intentions found that, while the UAE remains the most attractive destination for professionals, favoured by 49% of GCC-based expatriates, Qatar is closing in fast, with a 44% following. Based on current trends, Qatar could become the Gulf’s most popular destination for expatriates.
Despite outflows resulting from job cuts, the UAE remained far ahead of all other Gulf countries in terms of popularity with its current residents, thanks to its superior infrastructure. 72% of UAE residents prefer to remain there, compared to 59% in Kuwait and 50% in Qatar.
According to the study, employers in the Gulf are likely to face tougher workforce nationalisation targets in 2011, as governments accelerate existing efforts to create jobs for their nationals, particularly in Bahrain and Oman which according to UNDP statistics, have the highest rates of unemployment in the GCC.
