Salary Guide 2016: United Arab Emirates

Transcription

1 Salary Guide 2016: United Arab Emirates Supply Chain 2016 Salary Guide cooperfitch.ae

2 Welcome to Cooper Fitch s 2016 Salary Guide for the United Arab Emirates Cooper Fitch is delighted to present its Salary Survey for 2016, providing insight into salary trends in key sectors for the United Arab Emirates (UAE). Based on data compiled from key employers in the region, as well as our own experts observations, this guide summarises our expectations for gross salaries and recruitment trends for the coming year. With GDP growth for the UAE estimated to have fallen to between 2% and 3% in 2015 and oil prices averaging $US40-45 per barrel, it is not surprising that salaries stayed relatively flat last year. Along with many other commentators, we had predicted a bounce in the employment market in the second half of 2015, which we now know did not occur due to the continued and prolonged downward trajectory of oil prices. Instead, recruitment levels finished below our expectations. The number of new jobs coming to market was lower than in 2014, translating into a slight softening in salaries for the year as a whole. growth to drop below current levels or to remain flat for the year ahead. We are predicting that for the full year of 2016 that salaries could drop to as low at 2% or 3% below certain levels or remain relatively flat depend on commodity prices We expect salaries to remain broadly flat during the coming year with workers more concerned about remaining employed than pushing for pay increases. By reading the commentary in this guide, however, you will see that there are significant divergences around this forecast with some sectors likely to perform better than others, leading to respective salary growth. We are hopeful that salaries will increase above 2015 levels in the second half of 2016, but this will largely depend on what happens to oil prices as the year progresses. We hope you find the insights presented in this report interesting and useful, and we welcome any feedback. Trefor Murphy Across the Gulf Cooperation Council (GCC), which incorporates the UAE, Bahrain, Iraq, Kuwait, Oman, Saudi Arabia and Qatar, the price of oil is a major factor in consumer confidence. So it inevitably has an impact on all sectors. With oil prices slipping to US$30 at the time of writing, we could yet see a further slowdown in GDP growth across the UAE. Since the outlook for 2016 is highly uncertain, some doom and gloom is steadily creeping into market sentiment. While the UAE economy is highly diversified and complex, it is still heavily reliant on natural resources, which affects all industries and professional disciplines. Undoubtedly the year ahead will be difficult for the UAE, but the government is making the right decisions to ensure that it balances it fiscal budgets and does not fall back into recession. Until the very end of 2015 we were looking forward to a bumper year in 2016, in terms of both the creation of new headcount and salary growth. We have now lowered our expectations, however, and expect salary 2

3 Supply Chain 2016 Salary Guide The UAE Supply Chain Salary Guide 2016 gives expected salary ranges for professionals working in supply chain, procurement, logistics and warehousing. Hiring Trends As investment in the GCC s manufacturing capability has increased, so has the prominence of the region s distribution, procurement and supply chain professionals. Manufacturing companies need support to source the raw materials that go into their products and to transport their finished goods to their customers. Since manufacturing companies are always looking to achieve the best prices from suppliers, procurement professionals who understand bids, contracts, negotiation and tender management are particularly sought after. Those with procurement in glass and wood manufacturing have proven to be very popular hires recently. Quality supply chain management is also becoming a priority for employers as they ramp up their distribution of products within the region. Warehouse managers and distribution managers are in high demand in Saudi Arabia, where there has been strong growth in manufacturing and distribution. Similarly, increased investment in manufacturing and distribution operations has led to more of these roles arising in the UAE Free Trade Zones. TALENT SUPPLY A shortage of local talent with distribution, procurement and supply chain expertise means that employers are tending to recruit from regions where the manufacturing industry is more advanced. While employers often look for professionals who can advise them on Western distribution practices, they still view the ability to speak and read Arabic, and to understand local culture, as being highly desirable attributes. 3

4 Supply Chain 2016 Salary Guide Salary & compensation trends Mirroring the trend in manufacturing and engineering, salaries in supply chain and procurement are expected to rise by 4-6% in While technical degrees are essential for commanding a decent wage in many positions, there is also a growing trend for procurement professionals to invest in neuro-linguistic programming courses and other psychology-based qualifications. This is because having an in-depth understanding of human nature and behaviour is seen as highly beneficial when negotiating. Gross Salaries (AED per month) Role 0-3 years' 3-5 years' 6-8 years' 9+ years' Supply Chain Director 30,000-39,000 35,000-54,000 52,000-68,000 68,000-96,000 Supply Chain Manager 21,000-32,500 25,000-37,000 39,000-47,000 48,000-56,500 Demand/Supply Planner 8,000-16,000 15,000-21,000 18,000-23,000 * Demand/Supply Planning Manager 19,000-24,000 25,000-31,000 28,000-32,000 30,000-35,000 Materials Engineer 6,000-9,000 10,000-16,000 12,000-18,000 17,000-19,000 Materials Manager 14,000-20,000 18,000-26,000 25,000-35,000 * Procurement Director 30,000-42,000 44,000-57,000 55,000-75,000 75,000-95,000 Procurement Manager 22,000-35,000 32,000-45,000 40,000-52,000 48,000-65,000 Category Manager 19,000-24,000 22,000-30,000 27,000-35,000 * Buyer 6,000-12,000 15,000-21,000 20,000-26,000 * General Manager 30,000-42,000 37,500-47,500 45,000-56,500 58,000-80,000 Operations Manager 18,000-28,000 25,000-35,000 38,000-45,000 40,000-57,500 Logistics Manager 16,000-22,000 22,000-27,000 25,000-35,000 32,000-42,000 Warehouse Supervisor 6,000-10,000 12,000-15,000 14,000-17,000 * Warehouse Manager 14,000-18,000 19,000-24,000 25,000-32,000 27,000-40,000 Senior Contracts Engineer 14,000-19,000 20,000-31,500 32,000-38,000 * Contracts Manager 22,000-28,000 26,000-35,000 36,000-48,000 45,000-55,000 Bid Manager 16,000-21,000 22,000-32,500 25,000-35,000 38,000-52,500 Trade Compliance Manager 15,000-23,000 21,500-32,000 24,000-34,500 35,000-50,000 *typically does not exist at this level 4

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