The document summarizes a meeting held by Towers Watson to discuss their 2014 General Industry Compensation Survey. It provides an overview of Towers Watson's business segments and data service offerings. It also reviews the current economic outlook and trends in compensation and benefits in Gulf countries, including housing and education allowances. Key highlights from mini surveys on housing allowance policies in Abu Dhabi and Dubai are also presented.

1. Towers Watson
2014 General Industry Compensation Survey Launch Meeting
© 2014 Towers Watson. All rights reserved.
The Address Hotel Dubai Mall, Dubai
14 April 2014

2. © 2014 Towers Watson. All rights reserved.
Welcome and Introduction

3. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
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Survey
Participation
Report
- General Industry
- Sectors
- Compensation
- Policies &
practices
Market
Trends
- Presented
twice per year
- Bi-annual
Pulse Surveys
- Mini-Surveys
Clients
Take decision to
update
compensation &
policies
Purpose of Today’s Forum

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Benefits
 Retirement
 Health and Group Benefits
 Technology and Administration Solutions
 International Consulting
 Risk Consulting and Software
 Investment
Risk and Financial Services
Talent and Rewards
 Rewards, Talent and Communication
 Data, Surveys and Technology
 Executive Compensation
Exchange Solutions
 Exchange services for retirees and
part-time employees
 Individual medical plans purchased
via public or private exchange
Our Business Segments
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5. © 2014 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Global Data Services
Global
Compensation Studies
Customized Surveys
Compensation, Benefits
and Employment Research
Data and
Consulting
 Collaborating with technical
experts from other parts of
Towers Watson to provide
integrated human capital
and risk management
solutions
 Sophisticated custom client
analysis helps companies
understand more than just
the numbers. We spell out
the implications and identify
potential solutions.
We provide an extensive global network of regional survey experts and local consulting offices to
ensure that each country’s surveys provide decision quality data and interpretation that reflect its
local governing laws and cultural practices.
 Published compensation
and benefits reports
 Web-based data access,
reporting and analytics tools
 Total rewards surveys
 Extensive policies and
practices information
including benefits
 Custom surveys to address
all components of rewards
 Individual client or
association sponsored
surveys
 Trend reports around
current reward issues and
pay movements
 Dedicated research
Function
 Published reports/studies on
benefits, employment terms
and conditions based on
HR-relevant research
 Partnering with internal and
external sources (for
example, International
Consulting Group, EIU,
ECA)
Expertise, methodology, tools and technology are the backbone of Global Data Services
Global Service Offering
Towers Watson Data Services
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Economic Outlook

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2009 2010 2011 2012 2013 2014 Forecast
GCC Economic Growth 3.0% 5.9% 7.5% 5.5% 3.9% 4.4%
World Economic Growth -2.3% 4.1% 2.7% 2.1% 2.0% 2.7%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%PercentageChange
Current Market Situation
“Gulf countries continue to enjoy higher economic growth than
the global average, thanks to oil prices” — Economist Intelligence Unit
Macro-Economic Outlook
Source: Economist Intelligence Unit, 2014
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Future Challenges
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Source: Economist Intelligence Unit, 2014
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Inflation
2014
2013
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Percentage Change
Economic Growth Percentage real GDP change
2014
2013
Robust
Growth
Medium Pace
Growth

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Compensation & Benefits Latest Market Trends

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Overall Gulf Cooperation Council Salary Movement
Source: Towers Watson Pulse Survey 2011, 2012, 2013, 2014
* Forecast
10
5.1 5.1
5.3 5.1
4.9
0
1
2
3
4
5
6
2010 2011 2012 2013 2014
%
*

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2013 Actual vs. 2014 Planned Salary Increases
United Arab Emirates
0%
1%
2%
3%
4%
5%
6%
7%
5.1 5.0 5.0 5.0 5.0
4.4
5.0 5.0 5.0
2013 Actual 2014 Planned
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Source: Towers Watson Pulse Survey , July 2013-2014
11

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Housing Allowance

13. Wich area in Dubai has witnessed the highest increase in rent
during the year 2013, assuming a 2-bedroom apartment?
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Audience Votes
1. Greens
10.6%
2. Al Barsha
4.5%
3. International City
6.1%
4. Al Qusais
6.1%
5. Dubai Marina
72.7%

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Economic Situation UAE Housing
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“Property prices in some areas of Dubai have now exceeded previous
peaks seen in 2008” – April 2014, ArabianBusiness.com
“The Emirate’s residential market maintained its momentum with average prices
increasing 33 percent year-on-year, with average rents improving 23
percent” – April 2014, ArabianBusiness.com
“Over a quarter of all workers in Abu Dhabi and Dubai expect to receive housing allowance
increases in the coming year” – February 2014, ArabianBusiness.com
“22 percent of workers in Abu Dhabi and 33 percent of those in Dubai can expect a
housing allowance increase this year” – February 2014,
ArabianBusiness.com
14

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Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey, 2014
Regional Median Annual Housing Allowance
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Employee Category:
58,000 USD
31,000 USD
Abu Dhabi
54,000 USD
29,000 USD
Dubai
53,000 USD
26,000 USD
Doha
51,000 USD
23,000 USD
Sharjah / RAK
39,000 USD
18,000 USD
Manama
37,000 USD
17,000 USD
Kuwait City
40,000 USD
18,000 USD
Al Khobar
44,000 USD
21,000 USD
Jeddah
41,000 USD
23,000 USD
Riyadh
37,000 USD
17,000 USD
Muscat
1.
2.
3.

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Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey 2008, 2011-2012, 2014
Median Housing Allowances Trend 2008-2014
-
50,000
100,000
150,000
200,000
250,000
300,000
General
Management (GM)
Top Management
(TM)
Middle
Management (MM)
Professionals
(PRO)
Technicians (TC) Manual Workers
(MW)
Annual Housing Allowance Trends (regardless of marital status and number of dependants)
2008
2011
2014
25%
32%
29%
33%
31%
72%
ArabEmiratiDirhams
Highest Increase
Lowest Increase
Abu Dhabi

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Median Housing Allowances Trend 2008-2014
-
50,000
100,000
150,000
200,000
250,000
300,000
General
Management (GM)
Top Management
(TM)
Middle
Management (MM)
Professionals
(PRO)
Technicians (TC) Manual Workers
(MW)
Annual Housing Allowance Trends (regardless of marital status and number of dependants)
2008
2011
2014
26%
28%
27%
39%
53%
70%
ArabEmiratiDirhams
Highest Increase
Lowest Increase
Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey 2008, 2011-2012, 2014
Dubai

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Latest and Next Review
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% of
companies
reviewing
25th
Percentile
Median
75th
Percentile
Average
Abu Dhabi 12% 3.5 6.0 13.0 8.3
Dubai 22% 5.3 11.3 17.0 10.6
% of
companies
reviewing
25th
Percentile
Median
75th
Percentile
Average
Abu Dhabi 12% 5.0 7.5 10.0 7.0
Dubai 31% 6.0 10.0 11.3 9.7
2014 Budget
2013
Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey 2014
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Results From ONE MINUTE Mini Survey
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Policy
• More than half of the companies (60%) reported providing housing
allowance to their employees in the form of a lump sum
• While 23% of the companies provide as a percentage of the base salary
• 17% have this allowance as part of a Consolidated Allowance package
Timing
• Majority of companies (77%) reported providing housing allowances into
employee monthly pay instalment
• The remainder rather pay housing once a year
Requirement
• Most (85%) reported that they do not require a copy of the lease/renting
contract
Housing Allowance in Dubai

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Cash in Advance Payment
• Half of the companies (53%) reported providing Cash in Advance for housing
every year upon request by the employee.
• Some companies would limit to 6 months advance payment
• Some companies would have such practice only for the first two years
In case the employee leaves …
• Most companies would have pro-rated housing allowance deducted from
employee’s End-of-Service or would request to be paid back
Results From ONE MINUTE Mini Survey (Cont’d)
Housing Allowance in Dubai

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Education Allowance

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Economic Situation UAE Education
“After housing, education is the second biggest expenditure for
most in Dubai and is something you can’t compromise on” – October 2013, Emirates247.com
“With the cost of education at an all-time high, many private companies are providing
school fees as part of their salary packages for expats” – August 2013,
Thenational.ae
“Increases in school allowances are likely to be concentrated among
employers currently paying below the market average” – March
2014, Thenational.ae
“Nearly a quarter of all companies in Dubai aim to raise their schooling
allowance for employees in the coming year” – March 2014,
ArabianBusiness.com
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Education Allowance Trends - 2014
Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey, 2014
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0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
General Management
(GM)
Executive (EX) Middle Management
(MM)
Professionals (PR) Technical & Business
Support (TB)
Abu Dhabi
Dubai
Median Annual Education Allowance (AED per child)

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Extra-school sport activities
School trips outside country
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Company Coverage of Education Elements
Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey, 2014
School fees
Transportation to and from school
School books
Uniform
Uniform cleaning
External school-related activities
School trips inside country
100%
45%
40%
28%
8%
8%
5%
5%
5%

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Duplication of Benefits

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Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey, 2014
Percentage
Duplication of Benefits

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Source: Towers Watson Gulf Cooperation Council Cash Allowance Survey, 2014
Percentage
Duplication of Benefits
27

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Composite of base salary and allowances - UAE
70 66 64
70
60
75
30 34 36
30
40
25
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Managers Professionals Professionals
Sales
Technical
Support
Business
Support
Operations
Allowances
Base Salary
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Source: Towers Watson General Industry Survey, 2013
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