Michael Page Middle East Salary Survey 2018
Instability at country and regional level courtesy of multiple issues has been seen until the end of 2017, with a silver lining being the rise in oil to nearly $65 a barrel, according to the Michael Page Middle East Salary Survey 2018.
This continued instability has slowed decision making which it was thought would actually improve the market beginning Q4 17 and into 2018. The majority of clients now believe that 2018 will be a continuation of the current market, albeit 2017 is the bottoming out phase completed.
Drilling down into individual sectors, it is pleasing to see financial services, real estate and energy all hiring again. Conversely, retail and consumer goods are still on go slow mode, while technology, healthcare and education investment is steady. Government spending in Abu Dhabi has recommenced and Saudi Arabia’s transformation of the public sector is in full swing with numerous entities created to deliver the National Transformation Programme 2020 and Saudi Arabia’s Vision 2030.
It is the view of Michael Page that over the last two years, public and private sectors have taken all the necessary action to streamline their organisations and are now ready for the next period of growth in the region. The timing of decision making will continue to be effected as regional events (out of their control) unfold.
Finally, salaries and bonuses tend to be classified into pre-2015 and post-2015, in reference to the oil price plunge in Q4 2015. Candidates now accept that figures are different in the new era and there is not as much push back. The challenge for all organisations entering 2018 is how to manage annual increases, given the introduction of five per cent VAT. The general view will be that five per cent VAT is still a lot less than the high level of personal income tax payable in most countries.