And there was a noticeable difference in the UAE’s salary for editors ($5,667) against other countries: 9.1 per cent more than Saudi, 16.1 per cent more than Oman, 21 per cent more than Bahrain and 25.8 per cent more than Kuwait.
A less pronounced difference was seen for lawyers, with the $10,239 UAE figure up 2.3 per cent on Saudi, 14.5 per cent on Kuwait, 21.7 per cent on Oman and 22.9 per cent on Bahrain. Similarly for digital marketing specialists, with the UAE’s $4,493up 1.8 per cent on Saudi, 7.3 per cent on Bahrain, 9.4 per cent on Oman and 20 per cent on Kuwait.
Other interesting results came at the lower end of the table, with logistics executives in Oman ($3,453) found to command 0.7 per cent more than those in Bahrain, 9.2 per cent more than those in the UAE, 12.5 per cent more than those in the UAE and 20.4 per cent more than those in Kuwait.
Job trends and the impact of VAT
Outside of our main survey we asked the participants questions regarding salary and job trends and their expectations for the year ahead.
Suhail Masri, vice president of employer solutions at Bayt.com, said the company’s own research showed that small and medium enterprises in the private sector were expected to be the main driver for hiring in the coming months.
According to the firm’s own surveys, 76 per cent of companies in this category in the Middle East and North Africa will be hiring over the next three months and 89 per cent over the next year.
By industry, Bayt.com found that 81 per cent of consumer goods firms, 80 per cent of real estate/construction/property firms and 78 per cent of hospitality/recreation/entertainments firms are planning to hire over the next three months. This compared to 97 per cent of business consultancy/management firms, 95 per cent of consumer goods firms, 94 per cent of hospitality/recreation/entertainment firms, 93 per cent of banking/finance firms and 92 per cent of commerce/retail/trade firms planning to hire in the next year.
The most in-demand positions over the next three months, according to the firm’s February research, are junior executives (42 per cent), coordinators (31 per cent), and executives (28 per cent), while companies were also found to be looking to hire accountants (25 per cent), sales executives (18 per cent) and sales managers (16 per cent).
More broadly in the Gulf, Masri says the introduction of a 5 per cent value added tax rate should demand for related professionals.
“Given the introduction of the VAT tax system in the GCC, it is fair to expect the number of jobs relating to finance and accounting to increase.
“Governments, accounting firms, and businesses will require the skills of specialised tax accountants who are competent in incremental and surplus-value-based taxation.”
Similarly, Michael Page Middle East managing director Leith Ramsay says value added tax experience is among the skill-sets in demand at the moment, alongside digital and mega projects.
However, the demand for tax specialists has not necessarily been as great as was imagined before the 5 per cent tax’s implementation in Saudi Arabia and the UAE on January 1, according to another of our respondents.
Nadia director Ian Giulianotti says positions in demand at the firm has been consistent, particularly at the junior level led by secretaries and logistics staff at the junior level. But despite an anticipated surge in demand for tax personnel in 2017, with a flood of European, Australian and South African VAT specialists predicted, this has yet to materialise.
“We thought that with VAT coming in there would be an influx of VAT specialists. There have been some but not the numbers that we expected, and it certainly hasn’t had the effect we expected on salaries or people that have VAT experience,” he says.
Similarly, in the Gulf countries yet to implement the regional tax – Bahrain, Kuwait and Oman – Giulianotti says demand for tax specialists from companies has yet to emerge, although there is still time with the latter aiming for an early 2019 implementation date.
Another area where VAT does not appear to be having an impact is on salaries themselves, according to Ramsay, who says firms have generally not factored the tax into pay rises.
“Most organisations did not factor in VAT into annual salary increases. The logic being the benefit of living with zero income tax is far greater than the introduction of VAT,” he indicates.
Reforms and regulatory changes
Outside of VAT, a number of other factors linked to both government legislation and market demands are expected to impact the job market in the coming months.
In the UAE, one key example is the introduction of a good conduct certificate requirement for work visa applicants on February 4. Under the scheme, expats had to present a certificate from the police force or government for each of the countries they have resided in over the last five years, although a document from a local UAE police force would reportedly suffice for those that already have work visas and are switching jobs.
The Ministry of Human Resources and Emiratisation suspended the scheme on April 1 due to concerns it was delaying the hiring process, but it is expected to return at a later date.
Bayt.com’s Masri says he does not believe the new requirement will affect the UAE’s attractiveness as a job market but he does think it will be a factor job seekers take into account before making a move to the country.
“While we don’t believe that the new good conduct certificate requirement is going to impact the attractiveness of the UAE job market, it does mean that job seekers looking to relocate to the UAE must take into account this extra step and keep in mind that they must proactively prepare the documents they need before they embark on a new career.”
Meanwhile, Giulianotti suggests that the document could present the most complications for people that are visiting the UAE on a tourist visa with the intention of finding a job given how difficult it can be to obtain from abroad.
“For people in a hurry or employers that want an immediate replacement or want someone within four weeks they are probably going to turn to hiring people that are experienced and are in the UAE. That may cause a slight climb in the market in terms of market rates,” he suggests.
Elsewhere, Michael Page’s Ramsay suggests the requirement “will not be an issue” and should not impact the UAE’s attractiveness for workers.
Another consideration for those seeking work in Saudi Arabia will be a SAR100 ($27) monthly fee introduced last July for each dependent of a foreign worker that will increase to SAR200 ($53) this year. Giulianotti believes this will not impact the country’s appeal for skilled workers, who are compensated with higher salaries in the kingdom than the other regional countries due to the greater restrictions they face there. But there may be some impact on workers at the lower end of the market.
“There is a mind-set there that ‘I’m going to be there for three years, save everything I can and then in three years’ time I’m going to go home and buy a house or another financial goal’. That won’t change. It will still be that same pool of people that are going to go to Saudi Arabia,” he argues.
“The problems in Saudi Arabia are not at a skill-based level but a lower level – people that are mechanics, or working in restaurants and cafes. That’s where it’s going to be harder and harder to find people.”
On the upside, the kingdom’s reforms, including plans to privatise state assets, attract foreign investment, and diversify the economy, are creating opportunities in other areas.
Michael Page’s Ramsay says these factors mean the kingdom is a major driver for regional hiring.
“Saudi Arabia is going through a huge transformation and is driving a significant amount of the regional hiring,” he says.
Similarly, the managing director suggests that while there has been increased pressure from financial regulators on firms – including banks – to pay more attention to changes, this has created job opportunities for well-qualified legal and compliance professionals with experience in markets like the UK, Europe and Singapore.
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