MANAGING DIRECTOR S LETTER
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1 MANUFACTURING 1
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3 MANAGING DIRECTOR S LETTER 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 The major caveat is concerns about the fall in global oil prices to an eight-year low that we saw at the end of 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%. 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. TREFOR MURPHY Managing Director Cooper Fitch UAE Tel: tmurphy@cooperfitch.ae Cooper Fitch has been active in the GCC professional and managerial recruitment market for more than 17 years. 3
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5 MANUFACTURING HIRING TRENDS In the manufacturing sector international players have the upper hand over local companies. They not only have budget to make key hires but also have the brands and reputations that will attract talent. In the UAE and Saudi Arabia here is strong demand for expatriates who have GCC experience and knowledge of Arabic. Quality and environmental health and safety (EHS) professionals are being widely recruited across the region, though we saw no significant demand for Lean & Six Sigma candidates. With new factories being opened, especially in the chemicals and FMCG sectors in the UAE and Saudi Arabia, there is ongoing demand for factory and plant managers. Pharmaceuticals and FMCG companies and their service providers are recruiting staff for R&D and clinical trials. We have also seen a major focus among manufacturing companies on getting people into HR-based positions to match their nationalisation requirements. WITH NEW FACTORIES BEING OPENED, ESPECIALLY IN THE CHEMICALS AND FMCG SECTORS, THERE IS ONGOING DEMAND FOR FACTORY AND PLANT MANAGERS TALENT SUPPLY There is a continual challenge for multinational and local businesses to find locally based talent with knowledge of Arabic in the GCC region, especially Saudi Arabia and Kuwait but also in Egypt. SALARY & COMPENSATION TRENDS We predict a 5% salary increase in the manufacturing sector in There is considerable pressure on housing allowances with house prices and rent increasing dramatically over the past 12 months. 5
6 MANUFACTURING MANUFACTURING PERMANENT (AED per month) ROLE LEAN SIX SIGMA BLACK BELT 9,000-14,000 15,000-19,000 21,000-26,000 29,000-33,500 MASTER BLACK BELT 13,000-17,000 18,000-23,000 21,000-28,000 29,000-36,500 LEAN EXPERT 9,000-16,000 17,000-21,000 21,000-29,000 29,000-33,500 OPERATIONS MANAGER 19,000-21,000 21,000-26,000 23,000-31,000 31,000-40,000 PRODUCTION / FACTORY MANAGER 19,000-23,000 21,000-26,000 26,000-33,500 33,500-40,000 CONTINUOUS IMPROVEMENT MANAGER 16,000-19,000 17,000-22,000 26,000-36,500 36,500-47,500 LEAN SIX SIGMA MANAGER 15,000-18,000 17,000-22,000 23,000-39,500 36,500-47,500 PLANT MANAGER 21,000-26,000 23,000-28,000 26,000-36,500 36,500-53,000 QUALITY ENGINEER ASSURANCE AND CONTROL 9,000-11,000 14,000-18, QUALITY MANAGER ASSURANCE AND CONTROL 16,000-21,000 18,000-24,000 19,000-28,000 31,000-42,000 HSE ENGINEER 8,000-11,000 11,000-16, HSE MANAGER 16,000-19,000 18,000-25,000 19,000-27,000 28,000-37,000 6
7 MANUFACTURING MANUFACTURING cont d PERMANENT (AED per month) ROLE PROCESS DEVELOPMENT MANAGER 17,000-21,000 19,000-26,000 26,000-33,500 36,000-47,500 PROCESS ENGINEER 10,000-13,000 11,000-18,000 18,000-26,000 - PROCESS ENGINEERING MANAGER 16,000-21,000 19,000-23,000 21,000-28,000 29,000-42,500 MANUFACTURING ENGINEER 9,000-11,000 11,000-17, MANUFACTURING ENGINEERING MANAGER 13,000-18,000 16,000-21,000 21,000-29,000 31,000-42,500 HEAD OF R&D 13,000-18,000 16,000-21,000 21,000-31,000 33,500-47,500 MAINTENANCE ENGINEER 8,000-13,000 13,000-18, MAINTENANCE MANAGER 19,000-24,000 24,000-28,000 26,000-31,000 31,500-42,500 GENERAL MANAGER 36,500-42,000 42,000-58,000 63,000-78,000 - CPO 52,500-68,000 68,000-83,000 83,000-98,000 - MANAGING DIRECTOR 73,000-88,000 78,000-93,
8 CONTACT US UAE 7th Floor Liberty House DIFC, PO Box Dubai, UAE T: E: dubai@cooperfitch.ae IRELAND 4th Floor 6 Lapp's Quay Cork T: E: cork@cooperfitch.ie AUSTRALIA Level 2 17 Castlereagh Street Sydney, NSW 2000 T: E: sydney@cooperfitch.com.au JAPAN Holland Hills Mori Tower 17F Toranomon Minato-ku, Tokyo T: E: japan@cooperfitch.co.jp CHINA Suite F Hang Seng Bank Tower 1000 Lujiazui Ring Road Pudong New Area Shanghai T: E: shanghai@cooperfitch.com SINGAPORE 30 Cecil Street #18-05 Prudential Tower Singapore T: E: singapore@cooperfitch.com.sg FRANCE 10 Avenue Franklin D. Roosevelt Paris T: E: cooperfitch.fr UK 61 Aldwych London WC2B 4AE T: E: london@cooperfitch.co.uk HONG KONG Suite 3407, Lippo Centre Tower II, 89 Queensway Admiralty, Hong Kong T: E: hk@cooperfitch.com.hk 8
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