Households in the Arabian Gulf are facing their weakest earnings growth prospects in a decade as low oil prices force employers to keep pay rises to a minimum.
Real wages in the region will increase by just over 1 per cent next year – a lower rise than most other regions except Latin America and Africa, according to research from recruitment consultant Korn Ferry Hay.
Although headline pay increases in Arabian Gulf countries would average 4.2 per cent, inflation will mean that real disposable incomes will rise by just 1.3 per cent
The UAE is expected to have the lowest real wage increases in the region, with average salaries rising by just 0.5 per cent as slowing growth forces companies to tighten budgets.
Employees in Saudi Arabia, the world’s largest oil producer, are expected to fare only slightly better, with real wages expected to increase by 0.8 per cent.
“Companies in the Gulf have taken a cautious view on pay increases, which are the slowest in a decade,” said Vijay Gandhi, the reward expert at Korn Ferry Hay Group.
“With oil prices averaging in the range of US$40 to $60 a barrel, this new reality is shaping the way organisations focus on costs – including reward.”
Korn Ferry analysed salary forecasts from HR departments for 25,000 organisations in 110 countries to find out which countries were likely to experience the biggest – and smallest – pay rises next year.
The region with the highest predicted pay rises was Asia, where salaries are forecast to increase by an average of 6.1 per cent and real wages are expected to rise by an average of 4.3 per cent.
The largest real wage increases are forecast in Vietnam (7.2 per cent), Thailand (5.6 per cent), Indonesia (4.9 per cent) and India (4.8 per cent).
Meanwhile in western Europe, average pay rises are expected to stand at about 2.1 per cent which means that, when inflation is taken into account, real pay rises of around 1.7 per cent.
Despite a fall in the value of the pound following the UK’s EU referendum in June, average wages in the UK are expected to rise 2.5 per cent next year – equating to a 1.9 per cent increase when adjusted to account for inflation. Workers in France and Germany are forecast to receive real wage rises of 1.5 per cent and 2.2 per cent respectively.
And in the United States, a 3 per cent salary increase is predicted. Adjusted for the 1.1 per cent inflation rate, the real wage increase is 1.9 per cent.
Earlier this year online recruitment firm GulfTalent predicted that salaries in the Gulf region would rise by 5.2 per cent this year. Last year, the UAE’s inflation rate was 4.09 per cent, with the cost of housing and education having the steepest increases.
lbarnard@thenational.ae
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COMPANY PROFILE
Company name: Bedu
Started: 2021
Founders: Khaled Al Huraimel, Matti Zinder, Amin Al Zarouni
Based: Dubai, UAE
Industry: AI, metaverse, Web3 and blockchain
Funding: Currently in pre-seed round to raise $5 million to $7 million
Investors: Privately funded
Saturday's results
Women's third round
- 14-Garbine Muguruza Blanco (Spain) beat Sorana Cirstea (Romania) 6-2, 6-2
- Magdalena Rybarikova (Slovakia) beat Lesia Tsurenko (Ukraine) 6-2, 6-1
- 7-Svetlana Kuznetsova (Russia) beat Polona Hercog (Slovenia) 6-4. 6-0
- Coco Vandeweghe (USA) beat Alison Riske (USA) 6-2, 6-4
- 9-Agnieszka Radwanska (Poland) beat 19-Timea Bacsinszky (Switzerland) 3-6, 6-4, 6-1
- Petra Martic (Croatia) beat Zarina Diyas (Kazakhstan) 7-6, 6-1
- Magdalena Rybarikova (Slovakia) beat Lesia Tsurenko (Ukraine) 6-2, 6-1
- 7-Svetlana Kuznetsova (Russia) beat Polona Hercog (Slovenia) 6-4, 6-0
Men's third round
- 13-Grigor Dimitrov (Bulgaria) beat Dudi Sela (Israel) 6-1, 6-1 -- retired
- Sam Queery (United States) beat Jo-Wilfried Tsonga (France) 6-2, 3-6, 7-6, 1-6, 7-5
- 6-Milos Raonic (Canada) beat 25-Albert Ramos (Spain) 7-6, 6-4, 7-5
- 10-Alexander Zverev (Germany) beat Sebastian Ofner (Austria) 6-4, 6-4, 6-2
- 11-Tomas Berdych (Czech Republic) beat David Ferrer (Spain) 6-3, 6-4, 6-3
- Adrian Mannarino (France) beat 15-Gael Monfils (France) 7-6, 4-6, 5-7, 6-3, 6-2
THE BIO
Age: 33
Favourite quote: “If you’re going through hell, keep going” Winston Churchill
Favourite breed of dog: All of them. I can’t possibly pick a favourite.
Favourite place in the UAE: The Stray Dogs Centre in Umm Al Quwain. It sounds predictable, but it honestly is my favourite place to spend time. Surrounded by hundreds of dogs that love you - what could possibly be better than that?
Favourite colour: All the colours that dogs come in
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
Abu Dhabi GP weekend schedule
Friday
First practice, 1pm
Second practice, 5pm
Saturday
Final practice, 2pm
Qualifying, 5pm
Sunday
Etihad Airways Abu Dhabi Grand Prix (55 laps), 5.10pm
Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
Newcastle United 0 Tottenham Hotspur 2
Tottenham (Alli 61'), Davies (70')
Red card Jonjo Shelvey (Newcastle)
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Eagles
Tries: Bright, O’Driscoll
Cons: Carey 2
Pens: Carey 3
Hurricanes
Tries: Knight 2, Lewis, Finck, Powell, Perry
Cons: Powell 3
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Racecard
2pm Handicap Dh 90,000 1,800m
2.30pm Handicap Dh120,000 1,950m
3pm Handicap Dh105,000 1,600m
3.30pm Jebel Ali Classic Conditions Dh300,000 1,400m
4pm Maiden Dh75,000 1,600m
4.30pm Conditions Dh250,000 1,400m
5pm Maiden Dh75,000 1,600m
5.30pm Handicap Dh85,000 1,000m
The National selections:
2pm Arch Gold
2.30pm Conclusion
3pm Al Battar
3.30pm Golden Jaguar
4pm Al Motayar
4.30pm Tapi Sioux
5pm Leadership
5.30pm Dahawi
PFA Premier League team of 2018-19
Allison (Liverpool)
Trent Alexander-Arnold (Liverpool)
Virgil van Dijk (Liverpool)
Aymeric Laporte (Manchester City)
Andrew Robertson (Liverpool)
Paul Pogba (Manchester United)
Fernandinho (Manchester City)
Bernardo Silva (Manchester City)
Raheem Sterling (Manchester City)
Sergio Aguero (Manchester City)
Sadio Mane (Liverpool)
ARM IPO DETAILS
Share price: Undisclosed
Target raise: $8 billion to $10 billion
Projected valuation: $60 billion to $70 billion (Source: Bloomberg)
Lead underwriters: Barclays, Goldman Sachs Group, JPMorgan Chase and Mizuho Financial Group
TO CATCH A KILLER
Director: Damian Szifron
Stars: Shailene Woodley, Ben Mendelsohn, Ralph Ineson
Rating: 2/5
THE SPECS
Engine: 3-litre V6
Transmission: eight-speed automatic
Power: 424hp
Torque: 580 Nm
Price: From Dh399,000
On sale: Now