UAE drop in expat salaries may threaten executive level emigration

Those planning to emigrate to a higher-salaried position in the United Arab Emirates may see their plans scotched by a reported fall in average salaries.

A recent survey revealed that, although CEOs and MDs at top international companies based in the UAE still receive the highest wages, a fall in the average salary over the past year is affecting lifestyles and deterring new blood. The decline in top-level pay over 2013 is making a £2000 a month difference to the average £18,650 salary in 2012.

The survey, carried out by the Gulf Business media group, noted that, in 2012, comparative salaries for top executives in local companies were fixed at an average of £13,650. and that the average overall wage for Emiratis was £6,125. Both figures have dropped in accordance with the fall in top-level executive pay at international companies.

Responses to the survey also revealed that wages across the board are not keeping pace with the emirate’s roaring inflation, especially in the rental property sector, forcing many mid-level executives to relocate to less expensive areas. Dubai has seen property price rises of up to 50 per cent over the past year, with salary increases to cover shortfalls rarely forthcoming.

It’s believed that employers are waiting to see what the start of World Expo 2020 preparations does to the economy in general and property prices in particular. Companies will be in the market for new expat managers for the massive infrastructure projects, and will be forced to make packages attractive or risk losing the fight for the best talent.