salary trends in gulf

1. 1Employment & Salary Trends in the Gulf

2. 1Employment & Salary Trends in the Gulf
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.
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
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
region’s 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 region’s heavy reliance
on expatriate talent from India, the accelerating
economic growth in India can also pose an
increasing challenge to employers.
GulfTalent
April 2015
Executive Summary

3. 2
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
.

4. 3Employment & Salary Trends in the Gulf
Stable economic growth
The regional economy continues to grow at a
stable pace, faster than most of the world, though
below the levels seen in the fast-growing markets
of India and China. Continued investment by
GCC governments in infrastructure development
remains a key driver of growth and job creation,
with projects such as Gulf Railway, Jeddah Metro
and Qatar stadiums driving significant activity.
GDP Growth
%, 2015
Source: Economist Intelligence Unit,
Economist, Asian Development Bank
Low oil prices
With the region heavily dependent on exports
of crude oil, the collapse in the oil price during
the second half of 2014 has reduced growth
expectations. For the time being, damage
seems to be limited to the oil sector, and some
government-linked projects in Bahrain and
Oman, the more vulnerable countries with smaller
reserves. Others such as Saudi Arabia have
seen almost no impact, as they draw on their
massive cash reserves to maintain spending and
investment.
Crude Oil Price
USD per Barrel (Brent)
Source: World Bank
Regional conflicts
With the exception of Bahrain, Gulf countries have
been islands of stability in a region torn by tension
and conflict. However, on-going violent conflict in
Syria, Iraq and Yemen, and tensions elsewhere
in Lebanon and Egypt have had some impact,
in some cases benefiting the Gulf countries by
increasing the flow of talent and capital to them.
Middle East – Key Conflict Zones
2015
Economic and Political Background
-4.0%
1.3%
3.2%
3.5%
7.2%
7.8%
EU
US
GCC
China
India
Source: Economic Intelligence Unit,
Economist, Asian Development Bank
Russia
GDP Growth comparison graph
40
60
80
100
120
2012 2013 2014 2015
Size reference box ( 7 cm X 4 cm)
Oil price graph
Crude Oil Price
USD per Barrel (Brent)
Source: World Bank
Middle East – Key Hotspot 2014
Middle East – Key Hotspots
2014
Qatar
Bahrain
Saudi Arabia
Syria
Egypt
Yemen
Oman
Iraq
Kuwait
Lebanon
UA
GDP Growth
%, 2015
%
1.3%
3.2%
3.5%
7.2%
7.8%
EU
US
GCC
China
India
conomic Intelligence Unit,
t, Asian Development Bank
Russia
rowth comparison graph
40
60
80
100
120
2012 2013 2014 2015
erence box ( 7 cm X 4 cm)
Oil price graph
Crude Oil Price
USD per Barrel (Brent)
Source: World Bank
Middle East – Key Hotspot 2014
Middle East – Key Hotspots
2014
Qatar
Bahrain
Saudi Arabia
Syria
Egypt
Yemen
Oman
Iraq
Kuwait
Lebanon
UAE
owth
Middle East – Key Hotspot 2014
Middle East – Key Hotspots
2014
Qatar
Bahrain
Saudi Arabia
Syria
Egypt
Yemen
Oman
Iraq
Kuwait
Lebanon
UAE
Jordan

5. 4
Recruitment Trends
Saudi Arabia leading job creation
Across the region, more firms increased
headcount last year than those who reduced it.
Saudi Arabia topped the list, where 72% of firms
reported expansion. Bahrain had the lowest net
job creation, with only 22% of firms expanding.
Employment Growth by Country
Net percentage of firms which increased headcount, 2014
* Insufficient data for Kuwait.
Source: GulfTalent Survey of HR Managers
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
a healthy increase in their share of regional
recruitment activity. Qatar on the other hand saw
a slowdown in recruitment during 2014, driven by
uncertainty over its World Cup award, and internal
pending reviews on the awarding of projects.
Recruitment Volume by Location
Percentage of vacancies advertised on GulfTalent *
* Based on 130,000 vacancies advertised on GulfTalent.com website
over the specified period.
Source : GulfTalent
Healthcare and education expanding
Healthcare has recently been the fastest
growing sector across the region, with 82% of
firms increasing headcount in 2014, followed
by education at 80%. Growing populations and
government investment are driving both sectors.
New regulations making health insurance
mandatory on employers is also contributing to
the sector’s expansion. Worst performing has
been the oil and gas sector, where only 34% of
firms created new jobs and some have been in
the process of downsizing.
Employment Growth by Sector
Net % of firms which increased headcount in 2014
Source: GulfTalent Survey of HR Managers
72%
61%
59%
38%
22%
0%
Saudi Arabia
Oman
UAE
Qatar
Bahrain
Kuwait N/A*
Employment Growth by Country
Net percentage of firms which increased
headcount
* Insu cient data for Kuwait
Source: GulfTalent Survey of HR Managers
Recruitment Volume by Location
Percentage of vacancies advertised on GulfTalent
Dubai
UAE (Ex: Dubai)
Saudi Arabia
Kuwait/Bahrain/Oman
Source: Based on 130,000 vacancies advertised on
GulfTalent.com over the specified period. Prevalenc
online recruitment varies across the region.
Employment growth graph
Recruitment volume graphs
34%
36%
63%
72%
77%
78%
80%
80%
82%
Oil & Gas
Travel & Hospitality
Banking
Retail & Consumer
Engineering
Transport & Logistics
Media & Marketing
Education
Healthcare
Employment Growth by Sector
Net % of firms which increased headcount in 2014
Source: GulfTalent Survey of HR Managers
Employment growth by sector
Nationalisation Pressure on Employers
Percentage of employers reporting nationalisation
key human resource challenge in 2014
Source: GulfTalent Survey of HR Managers
95%
84%
55%
53%
28%
6%
Oman
Saudi Arabia
Bahrain
Kuwait
UAE
Qatar
Nationalization chart
Qatar
440%35%37%
31%
1717%
14%
18%
22%
23
19%
20%
18%20%
1016%
20%17%16%
98%11%10%11%
202013201220112010
Recruitment Volume by Location
Percentage of vacancies advertised on GulfTalent *
Dubai
UAE (Exc: Dubai)
Saudi Arabia
Kuwait/Bahrain/
Oman
* Based on 130,000 vacancies advertised on
GulfTalent.com over the specified period.
Source : GulfTalent
Recruitment volume graphs
Qatar
41%40%35%37%31%
17%17%
14%
18%
22%
23%19%
20%
18%20%
10%16%
20%17%16%
9%8%11%10%11%
20142013201220112010
72%
61%
59%
38%
22%
0%
Saudi Arabia
Oman
UAE
Qatar
Bahrain
Kuwait N/A*
Employment Growth by Country
Net percentage of firms which increased
headcount
* Insu cient data for Kuwait
Source: GulfTalent Survey of HR Managers
Employment growth graph
34%
36%
63%
72%
77%
78%
80%
80%
82%
Oil & Gas
Travel & Hospitality
Banking
Retail & Consumer
Engineering
Transport & Logistics
Media & Marketing
Education
Healthcare
Employment Growth by Sector
Net % of firms which increased headcount in 2014
Source: GulfTalent Survey of HR Managers
Employment growth by sector

6. 5Employment & Salary Trends in the Gulf
Nationalisation pressure
In their effort to create jobs for their citizens, GCC
governments continue to push companies to
replace some of their expatriate employees with
nationals. Attracting and retaining nationals while
maintaining the mix of skills needed to operate
their business remains a major challenge for
employers. The pressure is greatest in Oman and
Saudi Arabia, where almost all employers cited
nationalisation as a key challenge. It remains the
least in Qatar and the UAE, where nationalisation
targets are significantly lower and confined to
certain sectors only, and are less strictly enforced.
Nationalisation Pressure on Employers
Percentage of employers reporting nationalisation as a key
human resource challenge in 2014
Source: GulfTalent Survey of HR Managers
Competition from India
As the Indian economy continues to grow at a
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.
“It is difficult to attract Indian
talent. Nowadays they have
ample opportunities back
home, with good salaries.
”General Manager
Saudi-based Engineering Firm
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
ability of employers to absorb the talent seeking
to escape the conflict zones.
“We had a great candidate
from Syria but his visa was
rejected and we lost him.
”HR Manager
UAE-based Construction Firm
Recruitment Volume by Location
Percentage of vacancies advertised on GulfTalent
Dubai
UAE (Ex: Dubai)
Saudi Arabia
Kuwait/Bahrain/Oman
Source: Based on 130,000 vacancies advertised on
GulfTalent.com over the specified period. Prevalence of
online recruitment varies across the region.
Recruitment volume graphs
Nationalisation Pressure on Employers
Percentage of employers reporting nationalisation as a
key human resource challenge in 2014
Source: GulfTalent Survey of HR Managers
95%
84%
55%
53%
28%
6%
Oman
Saudi Arabia
Bahrain
Kuwait
UAE
Qatar
Nationalization chart
Qatar
41%40%35%37%
31%
17%17%
14%
18%
22%
23%
19%
20%
18%20%
10%16%
20%17%16%
9%8%11%10%11%
20142013201220112010

7. 6
UAE attracts most expatriates
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
in the country expressed a desire to remain
there, the highest retention rate among all GCC
countries. The country’s popularity stems from
attractive employment opportunities, excellent
infrastructure and relatively liberal social norms.
Attraction of Expatriates
% of GCC-based expats outside each country who wish to
relocate into it
Source: GulfTalent Survey
Qatar popular, but retention low
Qatar remains the second most popular
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.
Retention of Expatriates
Percentage of expatriates within country who wish to
remain there
Source: GulfTalent Survey
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
result, the country’s retention rate has fallen to the
lowest in the region.
“Expatriate resignations have
gone down in our company,
but anyone who is resigning
now is leaving the country.
”HR Manager
Oman-based Multinational
Mobility
0%
20%
40%
60%
2009 2010 2011 2012 2013 2014
Attraction of Expatriates
% of GCC-based expats outside each country who
wish to relocate into it
UAE
Qatar
Saudi Arabia
Oman
Kuwait
Bahrain
Source: GulfTalent Survey
Oman
Retention of Expatriates
Percentage of expatriates within country who wish to
remain there
20132014
88%
60%
49%
45%
43%
47%
Source: GulfTalent Survey
88%
61%
55%
50%
48%
30%
UAE
Kuwait
Bahrain
Saudi Arabia
Qatar
Oman

8. 7Employment & Salary Trends in the Gulf
Pay rises accelerating
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
2015. This is largely driven by stable economic
growth, competition for local and expatriate
talent, rising cost of living in some countries,
and government measures such as pay rises for
nationals and raising the level of minimum wage.
GCC Average Salary Increase
2007 - 2015
* Forecast
Source: GulfTalent Surveys
Oman tops salary rises
During 2014, Oman had the region’s highest
salary increase, averaging 7.6%. In the aftermath
of the Arab spring, the country has witnessed the
emergence of powerful trade unions embarking
on collective bargaining with employers on a
scale never previously seen in the Gulf.
Saudi Arabia saw the second highest average
salary increase, as competition to attract and
retain Saudi talent drove up wages.
Private Sector Salary Increase by Country
Source: GulfTalent Survey
Construction tops pay rises
Among sectors, construction firms saw the highest
pay rises during 2014, as governments across
the region continued their massive investment in
infrastructure projects.
Healthcare and education, despite their rapid
expansion, continued to see some of the lowest
pay rises. Banking also saw lower than average
pay rises.
Salary Increase by Industry
Percentage, 2014
Source: GulfTalent Survey
Salaries
9.0%
11.4%
6.2% 6.1%
5.5%
6.2% 5.9%
6.7% 6.9%
2007 2008 2009 2010 2011 2012 2013 2014 2015*
Source: GulfTalent Survey
GCC Average Salary Increase
2007 - 2015
* Forecast
7.4%
6.7%
5.6%
5.3%
4.0%
5.4%
7.6%
7.5%
6.5%
6.2%
5.9%
5.7%
Oman
Arabia
Qatar
UAE
ahrain
Kuwait
e Sector Salary Increase by Country
20132014
e: GulfTalent Survey
7.8%
7.3%
7.2%
6.8%
6.8%
5.8%
5.6%
5.1%
5.1%
5.0%
Construction
Telecoms & IT
Logistics
Retail
Oil & Gas
Real Estate
Healthcare
Banking
Hospitality
Education
Salary Increase by Industry
Percentage, 2014-2015
Source: GulfTalent Survey
Increase by Job Category
4-2015
7.3%
7.1%
6.8%
6.8%
HR
ering
IT
ance
1.1
1.2
1.3
vs. British
Pound
vs. Euro
Change in Value of Gulf Currencies (Pegged to
USD) 2014-2015, indexed to Jan 2014
7.4%
6.7%
5.6%
5.3%
4.0%
5.4%
7.6%
7.5%
6.5%
6.2%
5.9%
5.7%
Oman
Saudi Arabia
Qatar
UAE
Bahrain
Kuwait
Private Sector Salary Increase by Country
20132014
Source: GulfTalent Survey
Salary Increase by Job Category
%, 2014-2015
7.3%
7.1%
6.8%
6.8%
6.7%
6.1%
5.9%
HR
Engineering
IT
Finance
Sales
Admin
Marketing
Source: GulfTalent Survey

9. 8
High pay rises for HR
Among job categories, HR professionals enjoyed
the highest pay rises, signaling the return of HR to
prominence as companies seek to expand their
talent base.
Marketing professionals surveyed have reported
the lowest average pay rises, possibly as a result
of the shift to digital, reducing companies’ need to
invest in traditional media and marketing.
Salary Increase by Job Category
%, 2014
Source: GulfTalent Survey
Strong dollar
Pegged to the US dollar, Gulf currencies have
risen in value over the past year against several
major currencies. This has helped increase the
value of Gulf salaries for expatriates, particularly
those sending a significant share of their income
back home in remittances.
Change in Value of Gulf Currencies (Pegged to USD)
2014-2015, indexed to Jan 2014
Source: OANDA
7.4%
6.7%
5.6%
5.3%
4.0%
5.4%
7.6%
7.5%
6.5%
6.2%
5.9%
5.7%
Oman
Arabia
Qatar
UAE
ahrain
Kuwait
e Sector Salary Increase by Country
20132014
e: GulfTalent Survey
7.8%
7.3%
7.2%
6.8%
6.8%
5.8%
5.6%
5.1%
5.1%
5.0%
Construction
Telecoms & IT
Logistics
Retail
Oil & Gas
Real Estate
Healthcare
Banking
Hospitality
Education
Salary Increase by Industry
Percentage, 2014-2015
Source: GulfTalent Survey
Increase by Job Category
4-2015
7.3%
7.1%
6.8%
6.8%
6.7%
6.1%
5.9%
HR
ering
IT
ance
Sales
dmin
eting
ce: GulfTalent Survey
0.9
1
1.1
1.2
1.3
2014 2015
vs. Indian Rupee
vs. British
Pound
vs. Euro
vs. Philippine Peso
Change in Value of Gulf Currencies (Pegged to
USD) 2014-2015, indexed to Jan 2014
Source: OANDA
7.4%
6.7%
5.6%
5.3%
4.0%
5.4%
7.6%
7.5%
6.5%
6.2%
5.9%
5.7%
Oman
Saudi Arabia
Qatar
UAE
Bahrain
Kuwait
Private Sector Salary Increase by Country
20132014
Source: GulfTalent Survey
7.8%
7.3%
7.2%
6.8%
6.8%
5.8%
5.6%
5.1%
5.1%
5.0%
Construction
Telecoms & IT
Logistics
Retail
Oil & Gas
Real Estate
Healthcare
Banking
Hospitality
Education
Salary Increase by Industry
Percentage, 2014-2015
Source: GulfTalent Survey
Salary Increase by Job Category
%, 2014-2015
7.3%
7.1%
6.8%
6.8%
6.7%
6.1%
5.9%
HR
Engineering
IT
Finance
Sales
Admin
Marketing
Source: GulfTalent Survey
0.9
1
1.1
1.2
1.3
2014 2015
vs. Indian Rupee
vs. British
Pound
vs. Euro
vs. Philippine Peso
Change in Value of Gulf Currencies (Pegged to
USD) 2014-2015, indexed to Jan 2014
Source: OANDA

10. 9Employment & Salary Trends in the Gulf
Rising salaries
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%.
Expected Average Pay Rise
%, 2015 Forecast
Source: GulfTalent Surveys
Construction tops pay rises
Across the region, the construction sector is
expected to offer the highest average pay rise at
10%, as employers compete for talent to deliver
large-scale infrastructure projects. Not surprisingly,
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
employers.
Expected Average Pay Rise by Sector
%, 2015 Forecast
Source: GulfTalent Surveys of HR Managers
Moderate hiring activity
Employers in most GCC countries reported plans
to create new jobs in 2015, though mostly at a
lower rate than the previous year. The highest
headcount increase reported is for Qatar with 66%
of firms reporting an intent to increase headcount
in 2015, followed by Saudi Arabia where the figure
was 53%. The lowest expectations of headcount
increase were for Kuwait and Bahrain.
Employment Growth by Country
Net percentage of firms increasing headcount
Source: GulfTalent Survey of HR Managers
* Insufficient data for Kuwait
2015 Outlook
6.5%
7.6%
7.5%
6.2%
5.9%
5.7%
Expected Average Pay Rise
%, 2015 Forecast
20142015 Forecast
8.3%
7.2%
7.1%
7.1%
7.0%
5.0%
Qatar
Oman
Saudi Arabia
UAE
Bahrain
Kuwait
Source: GulfTalent Surveys
38%
72%
61%
59%
N/A*
22%
Employment Growth by Country
Net percentage of firms increasing
headcount
20142015 Forecast
66%
53%
49%
47%
38%
38%
Qatar
Saudi Arabia
Oman
UAE
Kuwait
Bahrain
Source: GulfTalent Survey of HR Managers
* Insu cient data for Kuwait
6.5%
7.6%
7.5%
6.2%
5.9%
5.7%
pected Average Pay Rise
2015 Forecast
20142015 Forecast
8.3%
7.2%
7.1%
7.1%
7.0%
5.0%
Qatar
Oman
udi Arabia
UAE
Bahrain
Kuwait
ource: GulfTalent Surveys
38%
72%
61%
59%
N/A*
22%
Employment Growth by Country
Net percentage of firms increasing
headcount
20142015 Forecast
66%
53%
49%
47%
38%
38%
Qatar
Saudi Arabia
Oman
UAE
Kuwait
Bahrain
Source: GulfTalent Survey of HR Managers
* Insu cient data for Kuwait
10.0%
7.7%
6.8%
6.3%
6.2%
5.9%
5.8%
5.6%
5.5%
5.4%
Construction
Logistics
Retail
Healthcare
Real Estate
Telecoms & IT
Education
Banking
Hospitality
Oil & Gas
Expected Average Pay Rise by sector
%, 2015 Forecast
Source: GulfTalent Surveys of HR managers
7.8%
7.2%
6.8%
5.6%
7.3%
5.0%
5.1%
5.1%
6.8%
2015 Forecast 2014

11. 10
Healthcare tops hiring
The healthcare sector has the highest forecast
for headcount increase in 2015 with 79% of firms
expecting to hire more talent. Oil and Gas and
Telecom/IT sectors reported the lowest forecast,
with only around one-third of firms planning
expansion.
Employment Growth by Sector
Net percentage of firms increasing headcount
Source: GulfTalent Survey of HR Managers
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
end of the year, as some analysts expect, there
is unlikely to be any major impact on the regional
economy. However, if prices persist at current
levels into 2016, governments will inevitably feel
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.
Oil Price Needed to Balance Budget
USD
Source: IMF
Indian economic growth
The Indian economy, already fast growing, has
received a major boost from plunging crude oil
prices as well as the economic reforms planned
by the newly elected government. As a result, it is
widely expected to have the fastest growth rate
of any major economy, outpacing China’s growth
for the first time since 1999. This is likely to make
it even tougher than before for Gulf employers
to attract professionals from India, putting further
upward pressure on salaries.
Salary Rise Forecast
2015 %
Source: Hay Group, Aon Hewitt, GulfTalent
125
106
104
77
60
54
Bahrain
KSA
Oman
UAE
Qatar
Kuwait
Oil price Needed to Balance Budget
USD
Source: IMF
April 2015 price
= $60
Oil price chart
Budget
surplus
Budget
deficit
10.6%
8.0%
6.9%
2.8% 2.5%
India China GCC US UK
Salary Rise Forecast
2015 %
Source: Hay Group, Aon Hewitt, GulfTalent
Salary rise forecast
7.6%
6.5%
7.5%
6.2%
5.9%
5.7%
Expected Average Pay Rise
%, 2015 Forecast
20142015 Forecast
11.0%
10.2%
7.1%
7.1%
7.0%
5.0%
Oman
Qatar
Saudi Arabia
UAE
Bahrain
Kuwait
Source: GulfTalent Surveys
30%
70%
57%
61%
86%
43%
Employment Growth by Country
Net percentage of firms increasing
headcount
20142015 Forecast
66%
53%
49%
47%
38%
38%
Qatar
Saudi Arabia
Oman
UAE
Kuwait
Bahrain
Source: GulfTalent Survey of HR Managers
Employment Growth by Sector
Net percentage of firms increasing
headcount
20142015 Forecast
79%
77%
71%
63%
54%
54%
53%
37%
28%
Healthcare
Real Estate
Retail
Hospitality
Construction
Banking
Logistics
Oil & Gas
Telecom & IT
63%
50%
75%
74%
62%
33%
70%
21%
24%
Source: GulfTalent Survey of HR Managers
Employment growth by industry
125
106
104
77
60
54
Bahrain
KSA
Oman
UAE
Qatar
Kuwait
Oil price Needed to Balance Budget
USD
Source: IMF
April 2015 price
= $56
Oil price chart
Budget
surplus
Budget
deficit

12. 11Employment & Salary Trends in the Gulf
Saudi Arabia
• 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
• 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
• 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
UAE
• 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
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
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
Country Highlights

13. 12
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

14. 13Employment & Salary Trends in the Gulf
This research report was based on GulfTalent’s 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
Research Methodology
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.

15. 14
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16. 15Employment & Salary Trends in the Gulf
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