UAE private sector sees big rise in pay

Dubai: Private sector employees in the UAE received the highest pay rises in the Gulf in 2007 and 2008, but the increases failed to keep up with the soaring prices of food, commodities and housing, a study reveals.

According to a survey of 29,000 professionals in six Gulf countries last September, UAE companies adjusted workers' salaries by an average of 13.6 per cent from August 2007 to August 2008.

The adjustments were almost two per cent below the UAE's forecast inflation rate of 15.2 per cent, indicating that the residents' net earnings were falling, recruitment firm GulfTalent.com said in its survey.

The study, however, said the UAE remains the Gulf's most popular destination for expatriates due to "non-financial considerations."

Overall, the Gulf posted an 11.4 per cent salary increase.

Qatar also topped the list of pay rises with 12.7 per cent, followed by Oman with 12.1 per cent, Bahrain 10.5 per cent, Kuwait 10.1 per cent and Saudi Arabia 9.8 per cent.