Salary increases in UAE, Saudi and Qatar to overtake inflation rates

Dubai: Your wallet may just get heavier: Salaries in the UAE could rise by five per cent next year, with the highest raises expected in the energy, consumer goods and technology sectors, according to a recent survey.

A survey of about 500 companies in the Gulf across industries forecasts a five per cent rise in the UAE, 5.6 per cent in Qatar and six per cent in Saudi Arabia during 2013 — which will remain above the forecast inflation rates, according to the Total Remuneration Survey by global consultancy Mercer.

Companies will increase salaries in all levels of hierarchy because of competition to acquire and retain talent, Mercer said.

Multinationals operating in the UAE are paying up to 13 per cent more than local companies in terms of base salaries, according to Zaid Kamhawi, Mercer’s IPS Business Leader in the Middle East.


In the UAE, predicted pay hikes among executives are highest in the energy sector while those in managerial and lower positions will see the biggest payments in the consumer goods sector, the survey showed.


“The salary increases we anticipate in the region are higher than what we see in developing countries and above inflation,” said Kamhawi. “This is a clear reflection of the growth expected by Middle Eastern companies and an indication of their need to retain quality talent.”


Firms will be on aggressive recruitment mode, with 60 per cent of companies surveyed looking to hire by the end of the year and 70 per cent aiming to increase headcount by 2013, according to Mercer.

However companies are still cautious due to the impact of regional and global events on the local economy, Kamhawi said.

Investment

“Multinational firms, headquartered in Europe or the US and with Middle East operations, perceive the Mena region as a bright spot for investment and of their key growth regions,” Kamhawi added. “As a result of this, and as we tend to see in emerging markets, companies are competing to attract and retain valuable talent in the foreseeable future.”

Nationalisation efforts are seen across the UAE and Saudi Arabia, but Qatar showed a 10 per cent jump in the number of respondents reporting their firms are hiring nationals.

The GCC and particularly Dubai have benefited from the Arab Spring across Mena in terms of business picking up, which should translate into increased salaries next year, said David Fisher, chief executive of Grant Thornton Middle East, a business advisory firm.

“But with fairly quiet times in the rest of the world, people are looking to relocate from Europe to the UAE which could counter-balance that,” he added.

A generational shift which sees young people more concerned about career development and quality of life rather than only salary packages, means that money is a less effective way to retain staff, he said.

Thanks - Gulfnews.

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Wifi on the go for more Dubai-Abu Dhabi buses.

Dubai: It’s fast, it’s reliable and it is here to stay. Wifi services recently introduced on some Dubai-Abu Dhabi buses will become a permanent feature from next year, a senior Roads and Transport Authority (RTA) official said.
The service is currently available on five buses after being launched on a trial basis but will soon be extended to five more buses.
“The trial period will end in December and, with the response to the facility being overwhelming, we are going to continue the Wifi connectivity and will continue to add the service to more buses,” said Adel Shakeri, director of IT services at RTA’s Public Transport Agency, as he took a ride with Gulf News on a Wifi-enabled bus to Abu Dhabi.
He said the internet connectivity, along with the catering service, is intended to give the inter-city bus services a “five-star” feel. “It’s a five-star hospitality we are offering to the commuters for no extra charge. The facilities have already played an important role in attracting new passengers on buses and it will get better as time passes,” he added.
The Wifi connectivity is currently provided free of cost but it may not be the same always. “It is free for now and we at RTA will try to keep it free as long as we can. I see it as an added value for customers,” Shakeri said.
Less than one month into the launch of the Wifi service, it is already popular with many regular travellers.
Many commuters told Gulf News they were very happy with the Wifi services.
Maguel Lopes, a business development manager with a Swiss firm based in Dubai, said he preferred a bus ride over a drive in his own car because he had to travel to Abu Dhabi often. “I like travelling by bus because I can work on the way. It’s been better since the RTA have launched the Wifi connectivity. I can browse, check mails and communicate on the way using free internet. It’s a fantastic service that RTA is providing,” said the Portuguese technocrat, who is a long-time Dubai resident.
But there were also those who were not aware of the service.
Ahmad, 25, an IT professional from Egypt, another frequent traveller between Dubai and Abu Dhabi could only think of positives on learning about the service. “I can save money now by not using my 3G while on the bus. It’s a good service and it will certainly help more people use the buses and it’s fast as well,” he said.

The internet service on buses can be accessed through a gateway called “rta@emirateswifi”, which requires passengers to register for free and then diverts them to the browser. This process takes less than one minute.
The Gulf News team found the service reliable and fast through the entire journey. With food and beverages also readily available, bus rides are not the same anymore. Once the service becomes permanent on the Dubai-Abu Dhabi route, it will be extended to over 100 buses on other inter-emirate routes.

Thanks Gulfnews