JEDDAH: Private sector salaries in the GCC countries are forecast to increase at an average rate of 6.6 percent, a study by GulfTalent.com, a leading online recruitment firm in the Middle East, said Monday. Salaries in Qatar will top the list with an increase of 7.2 percent, followed by Saudi Arabia and Oman at 7 percent. Salaries in the UAE will go up by 6.3 percent this year, while in Kuwait it will rise by 5.9 percent and in Bahrain by 5.1 percent, the study said. The study titled “Employment and Salary Trends in the Gulf 2010-2011”, said Qatar and Saudi Arabia had the highest pay rises in 2010 at 6.8 percent and 6.7 percent respectively. Oman was in third place with 6.4 percent, followed by Kuwait at 5.7 percent. The UAE and Bahrain saw the smallest increases at 5.2 percent and 4.9 percent respectively. Although much lower than the double-digit increases of 2008, the pay rises were all higher than the rates of inflation, resulting in improving living standards for many, it said. However, an estimated 55 percent of professionals did not receive any pay increase at all. Across the region, with consumer spending picking up, the retail sector saw the highest pay rise at 6.4 percent, while education had the smallest increase at 3.8 percent. Among job categories, human resource professionals saw the highest raise at 7.1 percent. The study said the Gulf's labor market is witnessing “a small but fast-rising Chinese presence” - as employers seek substitutes for India and the Philippines, their traditional sources of skill, while a growing number of Chinese companies win major construction and energy contracts in the region, often bringing the required staff directly from China. Moreover, the study said employment market in the Gulf was expected to continue growing at a moderate pace, aided by global economic recovery, rising oil prices and continued government spending on infrastructure projects. Almost 61 percent of companies surveyed expected to increase headcount in 2011, compared to nine percent who planned staff cuts.
