What else is driving the salary hikes?

IIPM PUBLICATION
For one, the fast-rising salaries in India and increasing costs of living in the Gulf. According to GulfTalent.com’s report, India (traditionally the main supplier of expatriate workforce to the region) is itself witnessing an economic boom, and salaries back home are getting better and better, so more people would be willing to come back to India. Also, the weakening US dollar is affecting recruitment from Europe, so companies are being forced to fall back on Indians making demand surge. On an average, private sector salaries in the Gulf increased at 7.9 % during the last one year. Qatar topped the list with an 11.1 % rise in salaries, followed by the UAE at 10.3 %.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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