Days ago, we reported that the number of OFWs in the Middle East is expected to go down because of the oil price crisis.
Fortunately though, we have some good news from that side of the world.
According to the latest reports, Gulf residents and those living in the United Arab Emirates can expect to have a salary hike within the year.
The consultancy Mercer has released the information in their 2015 Total Remuneration Survey Results. The data indicates that both UAE and Qatar will likely experience salary increases within 2016 for around 4.9%, a much lower figure compared to the 5% or more for the previous five years.
In Saudi Arabia, the increase is expected to be at 5% which is lower than the previous years’ 6%.
“This fall in petro-dollar income has led to cuts in government spending observed in the last three to six months, which is compounding the situation,” said Nuno Gomes, Principal – Information Solutions Business Leader at Mercer M. E. “Added to this are underperforming financial markets and regional conflicts, with the overall picture one that is subduing companies’ confidence and curtailing investment.”
Moreover, it has been mentioned that only around 57% of Guld-based companies and organizations have plans to hire additional employees. This data is, again, significantly lesser when compared with 2014’s 71%. Saudi Arabia, on the other hand, has a decline from 70% to only 66%.
“It is clear that 2016 is likely to be characterized as being a year of restrictions, caution and a focus on improved efficiency from an HR (human resources), compensation and benefits perspective,” Gomes added. “Companies are looking to introduce new and interesting approaches to rewards, and benefit from the macro-economic environment to make necessary or desirable changes.”
“There is no doubt that 2015 has seen one of the biggest shifts in economic momentum in the Middle East in recent years,” reflected Gomes. “The rapid decline in oil revenue, which has resulted from oil prices falling from over $100 to less than $50 a barrel, is having a significant impact on the growth plans for businesses in the region.”