Wednesday, October 10, 2007

Are salaries still attractive in the Gulf?

The purchasing power and saving potential is considerably higher in Gulf countries and the number of people who are still flocking into the region is a great testimony to this fact. Granted, inflationary effect and diminishing value of money is a reality and employees are naturally sounding the alarm bell for support.

The Salaries in the gulf are still attractive despite the decline of the dollar for more reasons than one. Basically if we tend to compare apple to an apple the salary in the gulf is at par with the salaries in other parts of the world considering the standard and cost of living and the tax free status.

Nevertheless, companies still need to keep pace with high inflation in the Gulf despite the tax free environment. Expats pay more than one hidden tax in the Gulf especially the rent, electricity, water, etc.

Employers are offering more and more to get the right candidate. In fact most of the cases involved a new entrant in the company getting a fatter package for the same position than what an already existing employee would be getting.

The situation now stands good but still time alone will dictate what will be the situation of expats in the gulf.

At the end of the day however, people are staying still and hoping to ride the current macroeconomic wave the GCC region is experiencing. People are complaining but are bound to continue working in GCC, and as the saying goes “actions speaks louder than words”.

But for the common man it is important to consider all the pros and cons before deciding whether the Gulf salary is still attractive or not.

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