Saudi Arabia and UAE 2017 salary increases highest in GCC, says Aon report

Saudi Arabia continues to lead the region in salary increases, according to a GCC-wide survey of 600 multi-national companies and locally-owned conglomerates by Aon.

Must Read

How to choose an effective DDoS mitigation plan

There are several flavours from which to choose when selecting an effective DDoS mitigation strategy. Most enterprises opt for one of the cloud protection flavours (always-on or on-demand)

How tech bolster security of online gaming platforms

The rise of and is evident throughout the world’s financial capitals with the UK, US, and a few other European nations at the forefront

Explained: The evolving nature of cybersecurity threats

Concerns such as hacking and the presence of computer viruses have existed for decades in one form or another. As technology evolved over the years, so did the cybersecurity  threats themselves.

Saudi Arabia continues to lead the region in salary increases, according to a -wide survey of 600 multi-national companies and locally-owned conglomerates by Aon, a professional services firm providing a broad range of risk, retirement, and health solutions. The largest study of its kind in the Gulf region showed that, just as in 2016, actual salary increases remain lower than forecasted, influenced largely by a slow economy and low oil prices.

The region-wide VAT, a tax on consumption, of 5% to be implemented in January 2018 is expected to help improve GDP growth; however, it will add to the rising inflation in the region, leading to cost pressures. While employers choose to remain conservative in the projected salary increase of 2018, we may witness an upside in the actual salary increase, thanks to an improving economic situation as a result of increased government spending, stabilized oil prices, and the effects of economic transformation programs.

Including zeros and paycuts
Country 2017 Projected % 2017 Actual % 2018 Projected %
4.9 4.4 4.5
Kuwait 4.8 4.3 4.5
UAE 4.6 4.3 4.3
Qatar 4.5 4.2 4.5
Bahrain 4.7 3.9 4.0
Oman 4.6 3.9 4.3


Actual salary increases this year are highest for the Life Sciences (5.1%) and Hi-Tech sectors (4.6%), while the Construction/Engineering and Transportation/Logistics/Shipping Services sectors suffered the lowest salary increases at an average of just 2.4%. This is similar to last year, where Life Sciences was also a highest paid sector (together with Consumer Products) and Construction/Engineering experienced the lowest salary increase (together with the Energy sector).

Robert Richter, GCC Compensation Survey Manager, Aon Hewitt Middle East, said: “Despite lower than projected salary increases this year, there is optimism in the region over KSA Vision 2030 and Expo 2020 — with the potential for thriving new industries and a significant level of job creation in the region as a whole. With the stabilisation of oil prices, we can also expect the economy to stabilise and strengthen in the coming years.”

Aon has been conducting the salary increase survey on an annual basis across the globe for 30 years, and launched it in the Middle East for the first time in 2012. The report is free to participating organizations and available at a price of US$1,000 to others.

Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

Subscribe to receive the day's headlines from Tech Observer straight in your inbox

Leave a Reply

*The moderation of comments is automated and not cleared manually by Embedding of any link and use of abusive or unparliamentary language are prohibited.
- Advertisement -

Latest in TECH

Sapience Analytics signs distribution agreement with Redington

Sapience Analytics and Redington said that they have entered into a distribution agreement where latter will resell the Sapience Vue solution through its network of over 30,000 channel partners, system integrators, and value-added resellers countrywide.
- Advertisement -SAP Hana

Related Articles