Good News For Expats! Qatar Salaries To Increase By 0.9% 

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A higher salary increase is on the cards for employees in Qatar, according to a new survey by Aon Hewitt.
The GCC Salary Increase Survey has forecast that salary increase in Qatar will average 4.5 percent in 2017, a significant increase from this year’s rise of 3.6 percent.

Based on a survey of 600 multinational companies and locally-run conglomerates in the GCC, Aon Hewitt said,”Although companies in Qatar have predicted the lowest increase in the GCC region at 4.5 percent next year, the outlook is significantly higher than the recorded salary growth of just 3.6 percent this year.”

Among the participating GCC organisations, companies based in Saudi Arabia noted the highest projection for salary increases in 2017 at an average of 4.9 percent, an increase on this year’s actual 4.6 percent growth. Kuwait-based organisations have estimated salaries to rise by 4.8 percent in 2017, a significant increase from this year’s rise of 4.3 percent.

Companies operating in Bahrain have registered the third-highest salary increase projection within the GCC for 2017, reaching an average of 4.7 percent. Although optimistic, that falls just under the growth rate of 4.8 percent for this year, the highest in the region for 2016.

Both UAE and Oman-based companies projected an average salary increase of 4.6 percent for 2017. Oman’s outlook for 2017 shows a marked increase from 4.2 percent increase noted in 2016. For the UAE, this marks a slight increase from the 4.4 percent average salaries growth seen in 2016.

The largest of its kind in the Gulf region, the survey has predicted that GCC countries will have an average salary increase of 4.7 percent in 2017. This demonstrates a more optimistic outlook across the board as GDP growth is also expected to climb in the year ahead.

The same survey noted that in 2016 the region saw an average salary increase of 4.3 percent, which although positive, is down from an anticipated 5 percent increase for the year.

While 2016 proved to be a challenging period for economic expansion in some markets, over the next few years new policies governing inflation, taxation, diversification, and commodity pricing are anticipated to come into effect and lead to a general upswing in GCC salaries.

Moreover, the impact of lower oil prices and reduced public spending has not had the detrimental impact that some have anticipated, with most employers surveyed increasing the salaries of their employees this year and planning for even greater increases next year.

Aon Hewitt Middle East Survey Manager Robert Richter said,”Lower oil prices are likely to continue moderating the GCC’s economic growth this year, but a refreshed focus on non-oil sectors along with sustained programmes of state investment should underpin GDP expansion into 2017. The latest predictions for 2017 salary increases do fall in line with the general economic climate with signs of optimism on the horizon.”

The latest survey also notes that actual salary increases for the year 2016 have been the highest for pharmaceutical, media, and food & beverage industries. The industries with the lowest salary increases for 2016 are Telcos, construction and oil & gas.

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