gcc salary trends revisited

8/8/2019 GCC Salary Trends Revisited

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GCC Salary Trends Revis i tedGCC Salary Trends Revis i ted

Projections for 2009 based on First Quarter TrendsProjections for 2009 based on First Quarter Trends

ADVANTAGE CONSULTING COMPANY


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Contents

Introduction 3

Survey Methodology 4

Survey Response Rate 4

Section -1: GCC Salary Trends 5

Average Yearly Salary Increase in GCC 5

Percentage of Salary Increase in GCC (Country wise) 5

Percentage of Salary Increase in GCC (Sector wise) 6

Percentage of Salary Increase in GCC (Job Category wise) 7

Percentage of Salary Increase in GCC (Job Level wise) 7

Section -2: Salary Trends in Kuwait 8

Sector: Banking & Finance 8

Sector: Construction 11

Sector: Oil & Gas 13

Sector: Insurance 15

Sector: Telecommunication 16

Section 3: Functional & Support Areas 17

Focus Area: Sales & Marketing 17

Focus Area: HR & Administration 18

Focus Area: Information Technology 19

Focus Area: Professional Support 20

GCC Salary Trends Revisited

Page 2 advantage; All Rights Reserved


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Introduction

Advantage Consulting is a leading management consulting firm specialized inproviding Business Advisory services for large corporate houses in the MiddleEast. Advantage Consulting has won significant recognition that includes

prestigious awards, for their emphasis on transparency and corporategovernance to benefit investors and shareholders in the GCC markets. The corebusiness areas of ADVANTAGE are outlined at www.consulting-advantage.com.

With the impact of the economic crisis now slowly subsiding we now witnesschanges in the salary trends after the passing of the first quarter of 2009.Although most organizations have undertaken massive job cuts during the closeof 2008 and the beginning of 2009, trends now show that organizations havestepped back from resorting to job cuts. As we revisit the salary trends in theGCC, it is quite clear that the economy is on its upward climb. The GCCeconomies are now slowly recuperating from the impact of the economic

downturn that resulted in massive layoffs that has affected over 1 million

people, majority of who were blue collars, in the last quarter of 2008. The KSAGovernment has revealed that there are over 450,000 jobs being created in thetourism sector in order to cater to tourists as well as pilgrims who visit the

region.

However, studies confirm that the seemingly positive development of themarket will be short-lived and prove to be a Hit & Run scenario. Thegovernments of most GCC countries having guaranteed their banks andfinancial institutions have succeeded in providing some amount of support to

the economy. This, however, may not be enough and renewed focus needs tobe laid on long term Investment Policies.

The following report titled GCC Salary Trends - Revisited is a follow up on our

previous report titled Global Financial Crisis and GCC Salary Trends - Report.




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Survey Methodology

With the intention of presenting the most accurate information, data was

collected from over 1,000 organizations across the GCC. This report being afollow up to our previous report, we have focused on the major changes that

have affected the market and the affect these changes have had on salaries ascompared to previous expectations.

This report has been compiled using:

1. Expert knowledge of the Market Insights Division at Advantage

Consulting, with respect to salary trends that has been gathered andmonitored through up to date market studies.

2. Regular interaction with corporate clients and the analysis of their

responses through online questionnaires.

3. Statistical analysis of salaries of thousands of candidatesmaintained in ADVANTAGEs proprietary database.

Survey Response Rate




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Section 1: GCC Salary Trends

1. Average Yearly Salary Increase in GCC

6.20%

6.90%7.40%

8.00%

9.30%

11.50%

6.20%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

2003 2004 2005 2006 2007 2008 2009*

Year

Percentage

*Forecasted

In contrast to earlier expectation, 2009 is expected to have lower salary

increases. Based on trends observed over the first quarter of 2009, it is nowexpected that 2009 will see only a 6.2% increase in salaries.

2. Percentage of Salary Increase in GCC (Country wise)

5.20% 5.70% 6.10% 6.40% 8.10% 10.50%

5.45%

4.00% 4.60% 5.10% 5.60%11.00%

5.00% 5.50% 6.00% 6.50%

7.70% 9.80% 5.29%

9.00% 10.00% 10.50%

10.60% 12.70% 6.86%

8.10% 9.00% 9.70% 10.30% 10.70% 13.60% 7.34%

5.67%

6.00% 6.70% 7.00% 8.00% 7.90% 10.10%

12.10% 6.53%

11.10%

0%

20%

40%

60%

80%

100%

2003 2004 2005 2006 2007 2008 2009*

Year

Perc

entage

Bahrain Kuwait Oman Saudi Arabia Qatar U.A.E

*Forecasted

Based on trends seen from the first quarter of 2009, the above graph shows theforecasted percentage of salary increases across the GCC for 2009 along with

historical data for the period 2003 2008.




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Although previous expectations put percentage of salary increases for The UAEand Qatar at 10.9% and 10.2% respectively, it is now expected that thesefigures will further drop to 7.34% and 6.86% respectively. This is a drastic dropas compared to 2008 figures, for UAE and Qatar, which showed percentage ofsalary increases to be 13.6% and 12.7% respectively.

The other GCC countries have also been affected by the changing markets. It isnow expected that Bahrain, Kuwait, Oman and Saudi Arabia, will witness

percentage of salary increases to fall to 5.65%, 5.45%, 6.53% and 5.29%respectively.

3. Percentage of Salary Increase in GCC (Sector wise)

9.80%11.10%

9.70%

6.30%8.70% 8.40%

12.20%

15.10%

11.00%

8.10%

11.90%11.00%

6.59%

5.50%

7.45%

4.55%

6.43%6.60%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Banking & Finance Construction Oil & Gas Health Care FMCG Telecom

Sector

Percentage

**Forecasted

With the overall salary increase in the GCC subject to change, it is only naturalthat the various sectors have had an impact. The chart above shows the salaryincrease e percentages expected for 2009 for various sectors, namely Banking& Finance, Construction, Oil & Gas, Health care, FMCG and Telecom, along withthe historical data for 2007 and 2008.

The Banking and Finance sector, having seen the worst of the economicdownturn, has been considerably affected and it is now seen that overall salary

increases will further drop to 6.59% as compared to the previously expected9.2%.

The Construction sector is one of the hardest hit sectors in the GCC. This sectorhas seen numerous high cost projects being cancelled or delayed indefinitelyresulting in a further drop in salary increases from 10.3% to 5.50% for the year2009.

As opposed to the previous findings, we now see that the Oil & Gas and theFMCG sectors are expected to see further decline in the percentage of salary

increases to 7.45% and 6.43% respectively.

The Healthcare sector is no exception to the change in the markets with salaryincreases further dipping to 4.55%.




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4. Percentage of Salary Increase (Job Category wise)

13.00% 12.80% 12.10% 11.70% 10.80% 10.80%10.80%

7.02% 6.91% 6.53% 6.32% 5.83% 5.83%

7.00%8.30% 8.00%8.50%9.00%10.20%10.50%

5.83%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Engineering Finance HR IT Marketing Admin Sales

Job

Percentage

*Forecasted

5. Percentage of Salary Increase (Job Level wise)

11.50%11.20% 11.10%

10.80%

11.50%

6.22%6.80%

6.25%5.83% 6.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Top Executives Middle Management Professional/ Supervisory Clerical/ Administrative Manual

Job Level

Percentage

*

*Forecasted




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Section 2: Salary Trends in Kuwait

Sector: Banking & Finance

Key Trends

The Banking and Finance sector, which was drastically affected by

the economic downturn, has now shown signs of recuperating from itseffects.

Layoffs in the Banking sector have dropped significantly to 13.5

percent of their total workforce, compared to the 24.5 percent layoff thesector experienced in the second half of 2008.

Banking professionals in the GCC countries have experienced less

severe cuts in salaries and bonuses, relative to their counterparts in

other major financial centers.

The overall employment outlook for the banking sector remainsovertly cautious, with most banking institutions freezing recruitment

drives for the upcoming periods.

Middle Management roles in the Customer Relationship

Management function are the most sought after roles. IT, amongst other

Support roles, has also gained considerable importance.

Banking & Finance (Base Salary in Kuwaiti Dinars)

Job Position Monthly AnnualMin Max Min Max Typical

Investment Banking

Head of InvestmentBanking

6,100 8,400 73,200 100,800 87,360

Director 4,950 7,350 59,400 88,200 73,080

Vice President 3,150 5,460 37,800 65,520 51,660

Manager, InvestmentBanking

2,330 4,240 27,960 50,880 38,160

Manager, Placement 2,060 3,901 24,720 46,810 34,340

Manager, M&A 1,960 3,710 23,520 44,520 33,580

Investment Analyst 1,425 2,760 17,100 33,120 26,830

Treasury

Head of Treasury 5,025 6,968 60,300 83,616 70,510

Head of Sales3,090 5,408 37,080 64,896 51,160




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Job PositionMonthly Annual

Min Max Min Max Typical

Senior Dealer/Sales 2,200 3,885 26,400 46,620 32,760

Dealer/Sales 1,400 2,750 16,800 33,000 26,710

Asst. Dealer/Sales 940 1,970 11,280 23,643 16,610

Consumer Banking Credit & Risk

Head of Risk 3,070 5,800 36,840 69,600 51,170

Operational RiskManager

2,220 4,345 26,640 52,140 38,160

Head of Compliance 2,700 4,260 32,400 51,120 40,870

Compliance Manager 1,880 3,150 22,560 37,800 29,890

Compliance Officer 950 1,980 11,400 23,760 17,250

Head of Collections 2,310 3,475 27,720 41,700 34,320

Collections Manager 1,420 2,220 17,045 26,640 21,620

Head of Retail Credit 2,700 4,260 32,400 51,120 44,550

Head of Credit Policy 2,320 3,740 27,840 44,880 35,190

Head of CreditAnalytics

2,280 3,710 27,360 44,520 34,940

Consumer Banking Retail

Head of ProductDevelopment

2,320 3,870 27,840 46,440 35,190

Product Manager 1,580 3,150 18,960 37,800 26,710

Product Officer 790 1,575 9,480 18,900 13,420

Head of Retail 3,470 6,190 41,640 74,280 55,530

Head of CardsOperations

2,700 4,630 32,400 55,560 41,800

Head of Credit Cards 3,090 5,020 37,080 60,240 46,425

Branch Manager 1,540 2,790 18,480 33,480 23,640




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Private Banking

Head of PrivateBanking

3,480 5,020 41,760 60,240 48,170

Private Banker 1,960 3,920 23,520 47,040 33,700

Investment Specialist 1,810 3,790 21,720 45,480 31,950

Product DevelopmentManager

2,330 3,550 27,960 42,600 34,340

Banking - Asset Management

Director - InstitutionalSales

4,300 6,615 51,600 79,380 62,370

VP - Institutional Sales 3,150 4,725 37,800 56,700 45,360

Head of AssetManagement 4,620 6,965 55,440 83,580 66,760

Portfolio Director 3,480 5,410 41,760 64,920 51,790

Portfolio Manger 1,960 3,550 23,520 42,600 30,140

Finance & Accounts

Chief Internal Auditor 2,700 3,840 32,400 46,080 36,810

Financial Controller 2,700 3,790 32,400 45,480 36,190

Financial Planning &Analysis Manager 1,730 3,140 20,760 37,680 27,340

Internal Auditor 1,590 2,380 19,080 28,560 22,640

Finance Manager 1,750 3,230 21,000 38,760 27,980

Financial Analyst 950 1,810 11,400 21,720 15,330

Chief Accountant 1,170 1,970 14,040 23,643 17,250

Senior

Accountant780 1,540 9,360 18,480 12,780

Accountant 470 920 5,640 11,040 7,660




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Sector:ConstructionKey Trends

The Construction sector has been drastically impacted by the

economic downturn, with numerous real estate projects being suspendedor cancelled and several real estate firms facing bankruptcy, resulting ina drastic reduction in the number of employment opportunities available.

This sector has experienced the lowest pay rise, relative to othersectors, across the GCC. Job Security in this sector also poses a

significant challenge to attracting key talent, as the sector continues itscorrection.

This sector has witnessed a decrease in the percentage of layoffs

to 22 percent, relative to the 48 percent layoff in 2008.

Base Salary percentage increases for Executive level employeesare lower than those for Middle Management, Professional and otherlevels of employees.

Engineering roles are seen to assume greater importance withdemand for high caliber professionals on the rise.

Construction (Base Salary in Kuwaiti Dinars)



General Manager 3,480 5,400 41,760 64,800 51,160

Property Manager 1,970 3,150 23,640 37,800 30,520

Projects Director 2,620 4,310 31,440 51,720 39,930

Design Manager 1,970 3,550 23,640 42,600 33,070

Projects Manager 1,530 2,750 18,360 33,000 22,890

Commercial Director 2,475 4,260 29,702 51,120 37,060

Commercial Manager 1,725 3,150 20,700 37,800 30,140

MEP Managers 1,655 3,155 19,860 37,860 29,250

Design Engineer 1,160 1,960 13,920 23,520 18,440

Planning Engineer 1,060 1,740 12,720 20,880 17,040

Project Engineer 945 1,570 11,340 18,840 15,260

Construction Engineer945 1,590 11,340 19,080 13,350




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Architect 790 1,420 9,480 17,040 14,310

Quantity Surveyor 590 945 7,080 11,340 8,940

Foreman Construction 475 740 5,700 8,880 7,030

AutoCAD Operator 425 720 5,100 8,640 6,770

Draughtsman 390 680 4,680 8,160 6,640

Technician 190 370 2,280 4,440 3,060




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Sector: Oil & Gas

Key Trends

The impact of the economic downturn having caused drasticdecline in the oil prices has continued to slow down the pace of growth of

the Oil & Gas sector.

The delay in the fourth refinery project and the absence of new

pipeline expansion projects has had an indirect effect on employment.

The percentage layoffs in the Oil and Gas Sector have decreased

by 9.5 percent, compared to 13.8 percent the sector witnessed in 2008.

Geologist and Reservoir Engineer roles are projected to get more

importance relative to other roles in the sector.

Oil & Gas (Base Salary in Kuwaiti Dinars)

Job Position

Monthly Annual


Technical Director 3,700 6,030 44,400 72,360 57,400

Projects Director 3,480 5,780 41,760 69,360 55,660

Pipeline Manager 2,340 3,750 28,080 45,000 37,420

Operations Manager 2,490 3,880 29,880 46,560 38,430

Technical Manager 2,340 3,740 28,080 44,880 34,650

Project Manager Oil &Gas

1,950 3,125 23,400 37,500 29,860

Contracts Manager 2,200 3,515 26,400 42,180 32,760

Petroleum Engineer 1,400 2,730 16,800 32,760 26,460

Reservoir Engineer 1,550 2,730 18,600 32,760 27,720

Operator Oil & Gas 945 1,730 11,340 20,760 16,535

Geologist 1,110 2,090 13,320 25,080 18,825

Chemist 665 1,420 7,980 17,045 13,355

Production Supervisor

Oil & Gas1,060 1,885 12,720 22,620 17,170

Surveyor Oil & Gas 1,060 1,960 12,720 23,520 17,040

Specialist Drilling Rig

1,960 2,990 23,520 35,880 30,270




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Job Position

Monthly Annual


Driller 845 1,535 10,140 18,420 15,260

Technician 530 900 6,360 10,800 8,260




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Sector: Insurance

Key Trends

Growth in the insurance industry is waning slightly due to the

economic slowdown, resulting in a decrease in employment opportunitiesavailable within the sector.

The Insurance sector is expected to witness fewer job cuts than

other sectors in GCC countries.

Salaries have risen marginally and high caliber individuals, as

always, can demand a premium.

Treaty Accountants, Underwriting, Claims and Customer

Relationship roles have assumed greater significance relative to other

jobs categories in this sector.

Insurance (Base Salary in Kuwaiti Dinars)



Director Insurance 3,470 5,790 41,640 69,480 55,660

Insurance Manager 1,885 2,980 22,620 35,760 27,980

Reinsurance Manager 2,310 3,860 27,720 46,320 34,940

Risk Manager 2,010 4,080 24,120 48,960 35,610

Branch Manager 1,420 2,120 17,045 25,440 20,980

Customer Billing

Manager1,375 2,045 16,500 24,540 19,080

Claims Manager 2,040 3,710 24,480 44,520 33,070

Underwriter 1,975 3,790 23,700 45,480 33,690

Insurance Officer 945 1,540 11,340 18,480 14,050

Inspection Officer 990 1,660 11,885 19,920 14,690

Broker 550 870 6,600 10,440 9,960

Claims/ Field Adjuster 595 1,030 7,140 12,360 10,470

Claims Analyst 945 1,730 11,340 20,760 15,080

Claims Representative 550 905 6,600 10,860 8,300

Loss Control Inspector 595 1,030 7,140 12,360 9,450

Estimator 555 870 6,660 10,440 8,170

Insurance Agent 475 745 5,700 8,940 7,020




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Sector:TelecommunicationKey Trends

The Telecom sector has shown signs of stability, having recoveredfrom the initial impact of the economic crisis. Sustainability of current

revenue streams, however, pose a significant challenge for Telecomcompanies.

Salaries are expected to increase at a higher rate for the Telecomsector, relative to the increases for other sectors.

Layoffs in the Telecom Sector have decreased significantly, as

compared to previous trends recorded during the beginning of the crisis.

Business Development and IT related support roles have gainedprominence in the sector, relative to other job categories.

Telecommunication (Base Salary in Kuwaiti Dinars)



Director TelecomOperations

3,845 6,180 46,140 74,160 59,900

Vice President Telecom

2,730 4,680 32,760 56,160 41,580

Transmission Manager 1,975 3,620 23,700 43,440 33,070

Network Manager 1,880 3,580 22,560 42,960 32,430

Programme Manager 2,040 3,550 24,480 42,600 31,800

Security Engineer 985 1,960 11,820 23,520 13,990

Test Engineer-Telecom

1,270 2,380 15,240 28,560 20,350

RF Design Engineer 1,160 2,270 13,920 27,240 19,710

RF Test Engineer 1,060 2,220 12,720 26,640 19,080

DSP Engineer 1,275 2,360 15,300 28,320 20,350

CISCO Telecom

Engineer

1,420 2,520 17,045 30,240 20,980

Access Voice Architect 1,320 2,360 15,840 28,320 19,080

Network Data Analyst(VoIP)

1,160 2,225 13,920 26,700 17,800

Network SupportEngineer

1,060 2,230 12,720 26,760 18,440

Signal & TelecomSupport Engineer

1,110 2,120 13,320 25,440 17,800




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Section 3: Functional and Support Areas

Focus Area: Sales & Marketing

Sales & Marketing (Base Salary in Kuwaiti Dinars)



Sales Director 3,080 4,620 36,960 55,440 47,420

Marketing Director 3,220 4,990 38,640 59,880 48,670

Sales Manager 1,730 3,090 20,760 37,080 26,460

Marketing Manager 1,835 3,360 22,020 40,320 28,980

Corp. Communications

Manager

1,680 2,940 20,160 35,280 25,200

Product & BrandManager

1,260 1,940 15,120 23,280 17,640

Marketing Officer 900 1,530 10,800 18,360 13,350

Sales Officer 845 1,430 10,140 17,160 124,020

Corp. CommunicationsOfficer

785 1,370 9,420 16,440 11,765

Marketing Executive 630 980 7,560 11,760 9,585

Sales Executive 580 930 6,960 11,160 8,300

Corp. CommunicationsExecutive

560 870 6,720 10,440 7,660

Marketing Assistant 345 585 4,140 7,020 5,110

Sales Assistant 320 530 3,840 6,360 4,850

Corp. Communications

Assistant320 500 3,840 6,000 4,600




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Focus Area:Human Resources & AdministrationHuman Resources & Administration (Base Salary in Kuwaiti Dinars)



HR Director 2,700 4,625 32,400 55,500 43,680

HR Manager 1,710 3,090 20,520 37,080 26,460

AdministrationManager

1,520 2,625 18,240 31,500 22,680

Compensation &Benefits Manager

1,785 2,990 21,420 35,880 25,200

Recruitment Manager 1,575 2,885 18,900 34,620 23,310

Training & Dev.Manager

1,520 2,730 18,240 32,760 21,420

HR Officer 795 1,325 9,540 15,900 10,810

Administration Officer 680 1,160 8,160 13,920 9,920

Recruitment Officer 795 1,325 9,540 15,900 10,170

Training & Dev. Officer 745 1,270 8,940 15,240 10,170

Compensation &Benefits Officer

850 1,370 10,200 16,440 11,440

HR Analyst 950 1,590 11,400 19,080 15,260

HR Specialist 945 1,725 11,340 20,700 15,900

HR Executive 630 975 7,560 11,700 9,150

AdministrationExecutive

580 920 6,960 11,040 8,260

Camp Boss 275 460 3,300 5,520 4,130

Transport Coordinator 250 420 3,000 5,040 3,810

Mandoub 275 445 3,300 5,340 4,450

Messenger 135 315 1,620 3,780 2,540

Security Officer 370 500 4,440 6,000 5,080

Security Guard 125 250 1,500 3,000 2,160

Driver 155 270 1,860 3,240 2,410

Office Boy 140 240 1,680 2,880 2,090

Tea Boy 120 200 1,440 2,400 1,900




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Focus Area: Information Technology

Information Technology (Base Salary in Kuwaiti Dinars)

Job Position

Monthly Annual


Director IT 3,480 5,400 41,760 64,800 51,160

Vice President IT 2,340 4,510 28,080 54,120 40,950

Manager IT 1,970 3,550 23,640 42,600 31,800

Network Administrator 940 2,010 11,280 24,120 15,265

Database

Administrator1,010 2,120 12,120 25,440 15,265

Systems Engineer 1,060 2,220 12,720 26,640 18,825

Officer IT 875 1,490 10,500 17,880 14,050

Systems Analyst 1,160 1,960 13,920 23,520 17,170

Programmer 1,050 1,800 12,600 21,600 15,260

Web Designer 675 1,170 8,100 14,040 10,860




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Focus Area: Professional Support

Professional Support (Base Salary in Kuwaiti Dinars)



Office Manager 990 1,575 11,880 18,900 15,120

Executive Secretary 775 1,260 9,300 15,120 11,340

Executive Assistant 365 630 4,380 7,560 5,670

Technical Assistant 340 575 4,080 6,900 5,040

Secretary 310 630 3,720 7,560 5,670

Receptionist 285 580 3,420 6,960 5,040

Data Entry Operator 180 315 2,160 3,780 2,835




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DisclaimerThe data provided in this report is as-is and ADVANTAGE makes no warranty, either express or implied,

including but not limited to, warranties of correctness and fitness for a particular purpose. In no event willADVANTAGE CONSULTING COMPANY be liable for any indirect, special, consequential or other damages however

caused.



Published by ADVANTAGE Consulting Kuwait

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gcc salary trends revisited

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