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It seems that the recent decline in world oil prices and economic recession has created a state of confusion, which is normal. Many Middle East countries lack future strategies for the post-oil era or totally rely on oil and are not even prepared for lower demand .
I believe that most gulf states such as Kuwait may not experience financial problems or salary increment such as in Saudi Arabia in the short term because of good financial assets that could be sold to cover the deficit in the budget. But if decline in oil prices continued in the long term may reduce the typical Kuwaiti government support to some key sectors such as healthcare, education and housing, which may result in major job cuts , layoff and caused more job seekers.
The most important issue is that Kuwaiti government as oil-rich country has created revenue systems dependent on oil are to meet citizens needs and lifestyles, such as the large salaries and benefits that everyone believes is the country’s duty to provide no matter the status of oil. For example, a hike now in fuel prices does not seemed justified to Kuwaitis , even if is necessary and required.
But the certain fact is that the current low price of oil will lead to a destabilization of the economic system in the Gulf states, that have relatively small populations and large financial reserves, and most reports indicate Kuwait to be the least affected. This is good to know. However in other countries like in Saudi Arabia, I hopefully assume that is a major job cuts and salary increment crisis can be temporary and controlled.
I think it is not but rather I received three reports this year from Hays from UK, Macdonald & Company from UK, naukrigulf from Dubai respectively. All of them motioned that there is hike on salaries in Middle East. Again, I noticed myself from several companies in GCC countries that they are badly looking to reduce their expenses in all the ways, as such, reducing manpower, highly reducing project additional expenses and employee bonus. Not finish, again many companies are already closed and others are on the verge of a sudden close.
Recent scenario is looking better as Oil price curve is started to move upwards, hope to have a good boom in soon.
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I am agree with your answer my colleague’s Mr Mohammed Ashraf you gives us good answers
Although recession caused more job seekers in the market, salary wil not be reduced. An expericed skilled expert in the same job can do the job more efficiently and effectively than a new guy in that position. Companies bound to give incremet to experienced skilled staff to retain them. A good qualified experienced and skilled personnel will always demand salary as per their bargainig power as they have good chances of getting job anywhere.
Thanks. I don't see any near future increments in salaries happening either to attract new candidates to current vacancies or to retain skilled and experienced employees. Jobs are getting very competitive in the current economic recession and there are more demand than supply.
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As Ghada said there is lack future strategies or planning and Organizing in most of Middle east countries that's why even
salary increment were applied it will not be for all sectors> For sectors that will have salary increment it will be with different rates. Overall this is not a solution because when salaries go up prices follow them.
In light of the recession is difficult to increase salaries, especially the countries in the region have increased taxes and increased prices such as fuel and electricity therefore increased costs companies will be less profit and a section of companies and countries halted the recruitment process
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Agree with your answer Mr. Mohammad and answer given by Mrs. Ghada
agree with all expert answers above
