It is a possible moment of elation for professionals in the UAE as new report suggests that salaries across the country will rise this year.
Consultancy firm Cooper Fitch, formerly Morgan McKinley, predicts that there will be a 4-6 per cent hike in pay as the outlook for 2017 is improving and market sentiment looks reasonably positive.
In its Salary Guide for 201, the recruitment firm says that it also expects new jobs being made available following a better than expected finish to 2016 and a similar start to this year.
Trefor Murphy, CEO of Cooper Fitch, says 2016 was a flat year economically and “this was reflected in recruitment activity, with slower job creation and consolidation in some sectors leading to job losses.”
“We have seen salaries reduced or remaining flat in certain industries and it has been a particularly tough year for the banking and energy sectors.”
Poor consumer confidence and low commodity prices knocked down employment market which saw fewer new jobs coming onto the market compared to 2015.
“We are seeing new hires for the year ahead, with jobs in consultancy, advisory, legal, strategy and tax, along with big infrastructure projects, playing a major part in the recruitment drive for 2017,” says Murphy.
“Other areas, such as supply chain and manufacturing have also shown signs of recovery, but to a lesser extent, as have the energy and oil and gas sectors, with reasonable job creation and head count approval predicted for 2017. The imminent introduction of VAT in the UAE, and across the GCC, is believed to be the biggest contributor for job creation in the year ahead.”
Banking, however, Murphy says, remains uncertain for 2017 with a significant number of mergers planned for the next 12 months.
Last week, a survey released by Bayt.com and YouGuv revealed that nearly seven in 10 employers (69 per cent) are planning to hire in a year’s time in the UAE.