São Paulo – Enterprises in the Gulf region intend to raise wages and hire further personnel in 2012, according to a survey issued last weekend by United States-based consulting firm Mercer. The survey covered over 300 companies in Saudi Arabia, the United Arab Emirates and Qatar.
According to Mercer, the vast majority expects to grant raises and hire new employees next year. Wage raises are expected to average at 5.5% in the Emirates and 6% in Qatar and Saudi Arabia.
Despite the positive forecasts in this respect, enterprises are cautious concerning general giz performance estimates. According to the Mercer head of research for the region, Zaid Kamhawi, this is a result of uncertainty brought about by the Arab Spring and economic instability in Europe and the United States.
According to the consulting firm, the rise in total wages paid will be driven by the consumer goods and durable consumer goods industries, and in the Emirates, by high technology companies.
The survey unearths a few odd facts. Wage floors in Abu Dhabi, the capital of the Emirates, are on average 7.5% higher than in Dubai. In the case of housing allowances offered by employers, the difference is in some cases as high as 21%.
Another ascertainment is that in the Emirates, local businesses on average pay 17% higher wages than multinational companies do. In Qatar, domestic companies pay up to 43% more. In both cases, the survey considered base wages and the compensations offered.
“This is largely because of the diverse range of allowances local firms pay. Multinational firms offer a range of other elements – many of them not directly linked to compensation – that employees and candidates find valuable and that companies use as tools to attract, retain and develop their talent," said Kamhawi, according to a statement issued by Mercer.
To the executive, the survey’s results show the talent hunt in the region will intensify in the short term.
*Translated by Gabriel Pomerancblum
