construction - cooper fitch · that said, the current prognosis is that the fall in oil prices is...

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One of the major effects of this increase in the cost of living is that locally based candidates will tend to wait for an opportunity offering a major salary hike before moving jobs, and this is a factor depressing the talent supply. Many employers, however, are holding firm on salaries and will import professionals from abroad.

As you will discover by reading the articles in this Survey, there are significant divergences around these averages. The GCC economy not only continues to improve but is becoming increasingly dynamic and complex, with a huge number of variables affecting the different countries, industry sectors and professional disciplines.We hope you find the insights presented in this report interesting and useful, and welcome any feedback.

Welcome to Cooper Fitch’s 2015 UAE Salary Guide

This guide provides insights into salary trends in key sectors and professional communities within the Gulf Cooperation Council (GCC) region, based on what we have observed over the past year, together with a compilation of hard facts and figures on gross salaries.

The past year finished above our expectations in terms of levels of recruitment – the number of new jobs coming to market was in the order of 10 to 15% higher than we predicted and this translated into a hardening in salaries for the year as a whole. GDP growth across the region was healthy at around 5% and we expect this to continue in 2015.

The major caveat is concerns about the fall in global oil prices to an eight-year low that we saw at the end of 2014. At the time of writing, the indications were that the price will stabilise, but if the price should fall further to around US$50 a barrel, the economic outlook is likely to change significantly. In all of the Gulf Cooperation Council (UAE, Bahrain, Iraq, Kuwait, Oman, Saudi Arabia and Qatar) the price of oil is a major factor in consumer confidence so there is a knock-on effect across the board.

Salary increases will probably be slightly lower in 2015 than they were in 2014, largely as a result of the uncertainty about oil prices. Until the very end of 2014 we were looking forward to a bumper year in terms of both the creation of new headcount and salary growth, but we have had to reassess and lower expectations. That said, the current prognosis is that the fall in oil prices is likely to be short-lived.

Overall we are therefore likely to see a 10-12% increase in the overall number of new jobs, with salaries increasing in line with inflation at around 5-6%. For many, the actual cost of living is outstripping salary increases. Accommodation is a major component in the cost of living and in 2014 rents soared to an annual rate of increase of 15-20% while housing prices increased by 12-15%.

Managing Director | Cooper Fitch UAETel: +971 4 352 2506 | [email protected]

TREFORMURPHY

Cooper Fitch has been active in the GCC professional and managerial recruitment market for more than 17 years.

MANAGING DIRECTOR’S LETTER

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HIRING TRENDSIt is a much more exciting time to be in the construction sector right now than has been the case for some years in the UAE. Major projects that are planned or underway include:

• Dubai Canal project• Mall of Emirates and IBN Battuta Mall expansion• Blue Lagoon project at the Jumeirah Beach

Residence• Dubai World Central airport at Jebel Ali airport• Riyadh Metro • Dubai Opera House• IBN Battuta House• The Palm Tower

Recruiting into the sector for 2014 has been challenging but with the market growing rapidly, we are optimistic about the future.

TALENT SUPPLYFaced with rising salary expectations and the insufficient talent supply in their own countries, UAE-based hiring organisations are looking outside the GCC for a talented pool of candidates, as their salary expectations remain realistic.

OVERALL WE EXPECT HIRING IN CONSTRUCTION TO PEAK IN 2017-2019, DRIVEN BY DUBAI’S BUILD-UP TOWARDS EXPO 2020

SALARY & COMPENSATION TRENDSSalary expectations increased in 2014 with so many major projects in the pipeline but these expectations have not yet been met.

Construction companies have remained extremely firm on salaries and budgets were not increased early in 2014.

The corporate office fit-out market remained stable in 2014. Dubai was relatively quiet, but more activity in the Abu Dhabi market has helped to drive growth. Hospitality has become more active, with the launch of several new-build hotel projects and many owners of existing assets refurbishing their inventory in order to compete with the newer hotels coming onto the market. We expect these trends to continue into 2015.

Overall we expect hiring in construction to peak in 2017-2019, driven by Dubai’s build-up towards EXPO 2020, continued government spending in Abu Dhabi, Qatar gearing up for the 2022 World Cup and the Kingdom of Saudi Arabia continuing to invest heavily in new projects.

EXPO has of course been very positive for Dubai and the UAE in general construction, but the impact will not hit the fit-out sector for quite some time.

The main reason is that there is strong competition within the market with companies having to work on very low profit margins in order to secure projects, in the hope of increasing margins through repeat business.

In 2015 hiring organisations may have little choice in order to attract top candidates from recognisedcompanies and main competitors.

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GENERAL CONTRACTING | PERMANENT (AED per month)

ROLE 0-3 YEARS’ EXPERIENCE

3-5 YEARS’ EXPERIENCE


8+ YEARS’ EXPERIENCE

MANAGING DIRECTOR - GENERAL CONTRACTOR 53,000 - 63,000 63,000 - 73,000 73,000 - 83,000 83,000 - 110,000

PROJECT DIRECTOR 47,500 - 58,000 58,000 - 68,000 68,000 - 78,000 78,000 - 98,000

SENIOR PROJECT MANAGER 58,000 - 63,000 63,000 - 68,000 68,000 - 78,000 78,000 - 88,000

PROJECT MANAGER 47,500 - 53,000 53,000 - 63,000 63,000 - 73,000 73,000 - 78,000

CONTRACTS MANAGER 47,500 - 53,000 53,000 - 58,000 58,000 - 63,000 63,000 - 68,000

PROJECT ENGINEER 26,000 - 31,000 31,000 - 36,500 37,000 - 42,000 42,000 - 53,000

SITE MANAGER 31,500 - 36,500 37,000 - 42,000 42,000 - 47,000 47,500 - 53,000

SITE FOREMAN 11,000 - 16,000 16,000 - 21,000 21,000 - 21,000 26,000 - 31,500

SITE ENGINEER 21,000 - 26,000 21,000 - 37,500 36,500 - 47,500 47,500 - 58,000

COMMERCIAL DIRECTOR 47,500 - 57,500 58,000 - 68,000 68,000 - 73,000 73,000 - 83,000

COMMERCIAL MANAGER 47,500 - 53,000 53,000 - 63,000 63,000 - 68,000 68,000 - 73,000

CONTRACTS MANAGER 47,500 - 53,000 53,000 - 63,000 63,000 - 68,000 68,000 - 73,000

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GENERAL CONTRACTING cont’d | PERMANENT (AED per month)

ROLE 0-3 YEARS’ EXPERIENCE



8+ YEARS’ EXPERIENCE

SENIOR QUANTITY SURVEYOR 37,000 - 42,000 42,500 - 52,500 53,000 - 58,000 58,000 - 63,000

QUANTITY SURVEYOR 26,000 - 31,500 31,500 - 42,500 42,000 - 53,000 53,000 - 58,000

PLANNER / SCHEDULER 26,000 - 31,500 31,500 - 42,000 42,000 - 53,000 53,000 - 58,000

ESTIMATOR 16,000 - 21,000 21,000 - 26,000 26,000 - 31,000 31,000 - 36,500

BUSINESS DEVELOPMENT DIRECTOR 31,500 - 36,500 42,500 - 47,500 47,500 - 53,000 53,000 - 63,000

BUSINESS DEVELOPMENT MANAGER 21,000 - 26,000 31,000 - 36,500 37,000 - 42,500 42,000 - 53,000

SALES MANAGER 21,000 - 26,000 31,000 - 36,500 37,000 - 42,000 42,000 - 53,000

SALES ENGINEER 21,000 - 26,000 26,000 - 31,000 31,500 - 37,000 36,500 - 42,500

QA / QC MANAGER 21,000 - 26,000 26,000 - 36,500 37,000 - 42,000 42,000 - 47,500

QA / QC OFFICER 16,000 - 21,000 21,000 - 26,000 21,000 - 31,500 -

HSE MANAGER 26,000 - 36,500 37,000 - 47,500 47,500 - 58,000 58,000 - 68,000

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UAE

7th Floor Liberty HouseDIFC, PO Box 118468Dubai, UAE

T: +971 4 352 2506E: [email protected]

AUSTRALIA

Level 217 Castlereagh Street Sydney, NSW 2000


CHINA

Suite 15-01215F Hang Seng Bank Tower1000 Lujiazui Ring RoadPudong New AreaShanghai 200120


FRANCE

10 Avenue Franklin D. Roosevelt75008 Paris

T: +33 1 7036 8700E: cooperfitch.fr

HONG KONG

Suite 3407, Lippo CentreTower II, 89 QueenswayAdmiralty, Hong Kong

T: +852 3907 3907E: [email protected]

CONTACT US

IRELAND

4th Floor6 Lapp's QuayCork


JAPAN

Holland Hills Mori Tower 17F5-11-2 ToranomonMinato-ku, Tokyo 105-0001


SINGAPORE

30 Cecil Street#18-05 Prudential TowerSingapore 049712


UK

61 AldwychLondonWC2B 4AE


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construction - cooper fitch · that said, the current prognosis is that the fall in oil prices is...

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