More Jobs and Increased Salaries for UAE residents

Following the slowdown period in the United Arab Emirates (UAE), salaries have finally started to steadily rise where yearly raises are considered as normal rather than an exception to the rule. 

The UAE’s employment market is also on the rise annually as more job openings are constantly becoming available. This was especially evident after the UAE was appointed as the country, which will host the EXPO 2020. 

Although salaries are not as high as the used to be before the crisis hit the UAE several years ago, they are steadily rising. 

According to Human Resources Firms, during 2015 employees will receive approximately 4.8% raise in salaries. The 4.8% growth in salary is lower than that predicted by UAE corporations when asked to forecast salary growth for the 2 previous years, 2014 and 2013, which forecasted that annual salary growth would reach 5.1% and 5% respectively. 

Although, an increase in salary would mean a more viable and healthy financial state for employees, increases in inflation may balance the increase in salary, meaning that the average worker will not benefit much from the growth in salary. 

Dubai Emiratis have confirmed that although their incomes have risen they have not been able to save any funds. The main reason that led Dubai residents not to add to their savings is that during 2014 rents boomed significantly. 

According to financial advisors, although UAE and Middle Eastern residents are being paid more, they need to spend more to maintain the lifestyle they had because prices are constantly rising. 

Incomes have marked a steady hike since the Middle Eastern region was hit by the financial crisis. Although managers and other executives throughout the UAE are rewarded with higher salaries in comparison to Westerners occupying the same positions, the living cost and inflation rates are constantly rising. 

Although many foreigners are attracted to the fact, the UAE does not enforce Income Tax, rents and education expenses balance this feature out. Thus although workers enjoy a Income Tax-free environment, the cost of living in terms of housing and education diminish the tax benefit. 

Overall, incomes are constantly rising, but the tax-free paradise hub that attracted so many workers before the international crisis has started to become much less appealing during 2014. Although the UAE and other Middle Eastern nations offer better salaries, potential workers also need to consider their lifestyle expenses, healthcare, education and cultural diversity. 

Based on the National Bank of Abu Dhabi and Reuters inflation rates are expected to mark a rise, fluctuating between 2.8%-3% during 2015. 

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