Expat packages shrinking as jobs dry up

In what could be viewed as something of a return to common sense, the sort of rapidly escalating pay packages offered to expats working in the UAE financial services sector have ceased. Instead, they have begun to shrink.

Recruiters Robert Half have just produced their first salary survey for the Gulf region, which suggests that demand for front office banking staff in the region has slipped this year, and average salaries have begun to reflect this.

In particular, expat investment bankers thinking of flocking to the region in anticipation of a bidding war for their services will be sorely disappointed, says James Sayer, senior manager at Robert Half in the UAE.

"Previously, expats with a specific profile could enjoy large annual pay increases. However, this has not been the case this year. Now, the main economic boost for those working in the UAE and the wider region stems from working in a tax-free environment," he says.

The survey chimes with previous studies suggesting that firms were attempting to drive down expat pay, as job opportunities become scarcer in the region.

One positive note to come out of Robert Half's research is the assertion that roles in the less glamorous (and therefore largely ignored) finance and accounting sector have remained buoyant in the face of tough economic conditions.

"There's been a real focus on treasury, financial control and accounts payable positions," says Sayer.

As a result, salaries have remained in line with 2008.

UAE financial services salaries: