The recent announcement by the government of Dubai that it has decreed a salary increase ranging from 30-100per cent for public employees must have come as an unexpected boon to those affected by the pay raise. What was made even sweeter was the announcement by the Dubai Government Human Resources Department that the raise will be paid retrospectively back to June 30 of this year, benefiting thousands of public service staff in more than 32 departments within the government.

This unexpected bounty coming towards the end of the year and the beginning of the holiday season for some was nothing short of a windfall of good fortunes, the pot of gold at the end of the rainbow. Undoubtedly, this will spur many a head of the household to loosen the purse strings and embark on a spending splurge for items long desired but not purchased.

But every good tiding often is followed by clouds of concern. In Saudi Arabia, we have had a few experiences with blanket raises to government staff with downbeat results. The few odd times that increases were announced were quickly followed by three distinct by-products of generosity.

One was that spending habits of Saudis changed and not for the better. The shackles self-imposed by years of wise spending by families following the economic downturn of the 80’s decade were suddenly removed by an announced salary increase, and so followed spending. Subsequent increases followed a similar pattern.

Saudis who had been content to live within their means were slowly being sucked into the vortex of unbridled consumerism as the doctrine of ‘buy, buy, buy’ became the theme in many households. Families who were content to eat out once a fortnight were suddenly splurging their new-gotten wealth into twice a week outings to expensive restaurants. Cars and jewelry were also sought as the dam of spending restraints had somehow broken.

Homes were refurbished or bought, staff was recruited and the previously prudent household budget somehow flew out of the window. Spending was not just restricted to purchases of items of luxury. Travel became another option for many who spent generously in taking vacations to locations once deemed out of reach. There was a reason to be optimistic as the pay raises promised greater wealth!

But such spending comes with a price. When spending patterns change, they soon become a habit. And to feed this habit, many Saudis found themselves spending more. This reached the point of spending more than they brought in and that has spelled disaster for many who find themselves today saddled with gruelling debts that continue to take their toll long after the glitter of their purchases has faded.

The other change that followed was that the increase by the government employees’ salaries drew hundreds of thousands of citizens from rural area to the urban centres. Since most government departments are headquartered in the larger urban cities, residents of rural areas made their move for a slice of the pie. This massive migration came at a price to the already overloaded infrastructure. Although I do not know of any study that has covered this aspect of human migration as a result of government pay increases, the obvious results led to housing become scarce and rentals shooting up, water supply often interrupted as was the electricity during the hot summer months. Then there was the traffic jams on the metropolis’ roads not planned for such an influx.

Finally, there was greed; a voracity by sellers and traders to take advantage of the bounty of the government towards its people and to ensure that most of this bounty was pocketed by them. Prices began to shoot up without rhyme or reason and maintained their upwards spiral to the point where they obliterated any positive effects of salary increases. Buying power kept shrinking until it had reached a negative balance. The depressing aspect of this is that those inflated prices continue to remain in force for certain items, while salaries have been static for several years.

Several ministries were flooded with complaints by irate residents on such unjustified avarice. The media was relentless in highlighting the cause of the overwrought consumer in the face of such greed. Grassroots campaigns through social media were initiated to boycott specific traders and merchants who took advantage of the government’s generosity to fill their own coffers, with a remarkable degree of success.

So what can the UAE residents affected by the salary increases do to help avoid some of the pitfalls their Saudi neighbours had to face? To begin with, keep your wallet shut! Do not change you spending habits at all cost. Refrain from being seduced by glib marketers and their messages. They are more concerned about your money than your welfare. Deposit the increase into a bank account, until you have at least six months of salary saved. Learn to live your life like before.

The government must also play its part to ensure that unfair business practices do not take off. Widespread rent increases during this period must not be allowed to root, regardless of the justification. Not everyone is a recipient of the bounty. Prices on shelves or in showrooms should not reflect any unwarranted increases. Otherwise the only winner in this salary increase would be greed.

Tariq A. Al Maeena is a Saudi socio-political commentator. He lives in Jeddah, Saudi Arabia. Follow him on Twitter at www.twitter.com/@talmaeena