A survey was recently conducted by a networking group Pink Slip Dubai and a market research firm Insight Discovery depicting the current job market trends in the United Arab Emirates (UAE) and Gulf Jobs. According to most recruiters, HR executives and headhunters who took part in the survey believed there was an upward trend in the job market in 2010 as compared to 2009. As businesses start to pick up after the recession, more need is created for qualifies and competent professionals to bring back the companies out of the crunch.

Of all the business sectors operating in Dubai and other Emirates, most positive figures were observed in finance, human resources and sales and marketing.

The salaries, however, have not improved much except for the senior executive roles or those industry sectors where good human resource is scarce. Employees who excel in their fields are still in high demand by most of the large companies who continuously try to retain their key employees by offering premium salaries and benefits.

With stronger economic growth projected for the Middle East jobs in 2010, companies in the UAE are expected to offer larger pay rises than last year as they compete for talent with firms in other parts of the region. Throughout much of the world, stagnating or falling salaries have been an unwelcome result of the global financial crisis. However, while not immune to the financial downturn, the Middle East was impacted less than other areas, with studies reporting that salary growth in the region was among the highest in the world in 2009. One survey, by Hewitt Associates, found that average salaries in the Middle East climbed 6.9% last year, while a separate study by Mercer revealed that salaries in the UAE grew by an average 3.4%-5.2% during the year.

Both studies, which were released in the fourth quarter of last year, were optimistic about salary rises in 2010, with Hewitt's study forecasting salaries to go up by an average of 7.9% throughout the region in 2010, and Mercer tipping salary growth in the UAE at between 7% and 7.5%.

 

Salary pressure

Companies in Dubai may be under the most pressure to raise salaries as they need to compete with firms in Qatar, Saudi Arabia, and Abu Dhabi, which have strong local economies and many companies that are looking to expand, Bassam Gazal, head of Mercer's survey practice in the Middle East, told AMEInfo.com.

In Qatar, GDP growth has been forecast to climb as high as 16% this year due to rising oil and gas output, while Saudi's economy has been pegged to grow about 4% on the back of higher oil prices and greater infrastructure spending.

In the UAE, strong growth in Abu Dhabi is expected to fuel a 2.5% increase in real GDP in the Emirates in 2010, according to Shuaa Capital.

Mike Hynes, Managing Partner at Kershaw Leonard, says he is seeing 'a lot more' hiring activity in Abu Dhabi than Dubai, and a general willingness by job seekers in Dubai to commute or even relocate to the capital, provided accommodation can be found.

However, the overall sentiment in Dubai remains upbeat. Hiring and salary trends in Dubai vary depending on the industry. But in the construction sector, everyone is looking for a good deal. Employers want to pay lower salaries, but employees won't move for less money. So it's a bit of a stalemate. People who have a job are hanging on to it.

source: ameinfo and others