Cost of living is falling, but so are some financial services salaries

19 October 2010

2 minute read

Cost of living is falling, but so are some financial services salaries

As has been reported elsewhere, slumping property prices means the cost of living in the UAE has tumbled in 2010. This is good news for financial services companies, which have always struggled to attract international talent due to spiralling inflation in the region.

But, with generous expat packages falling by the wayside to some extent in recent years, any fall in the cost of living is relatively meaningless if salaries tumble commensurately.

But the new Cost of Living report by HR and recruitment consultancy Kershaw Leonard suggests they have remained relatively stable.

For example, a senior fund manager can expect to earn AED82.5-158k ($22.4-43k) per month, or AED41-79k ($11.1-21.5k) at manager/associate level. Within research, the average salary comes in at AED44-57k ($12-15.5k) at the senior end, AED27.5-40k ($7.5-10.8k) within the mid ranks and AED20-35k ($5.4-9.5k). These are in line with 2008 levels.

The role to benefit most over the last year, though, is the not particularly glamorous role of credit controller. Monthly average salaries now come in at AED10-25k ($2.7-6.8k), or a 5-40% rise on 2009 levels.

Generally, though, salaries in the accountancy space have been on a downward trajectory, according to the figures.

A chief financial officer in the UAE could have expected AED40-75k ($10.8-20.5k) per month in 2009, and can now earn on average a maximum of AED65k ($17.7k). Similarly, a senior accountant could have taken in an average upper limit of AED22.5k ($6.1k) a month in 2009 and this has since shrunk to a AED20k ($5.4k) maximum.

"Candidates seem to be almost universally aware now that conditions are difficult and so are generally willing to be accommodating in terms of salary and location," says Mike Hynes, managing partner, Kershaw Leonard.

If accommodation costs are falling, bankers with children are being hit in other areas. Many private schools in the UAE have raised their fees to "maximum permissible levels". In Dubai, annual fees for an International Baccalaureate school can exceed AED 90,000.

AUTHORPaul Clarke

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yusuf jehangir Head of Marketi
19 October 2010
Yes, seems we are back to 101 Economics of supply and demand. Part of the problem is that this financial crisis is the first of its kind in the region, so we have moved from massive (and in some cases artifical) demand over the last few years to a state of oversupply. Most colleagues I know are simply holding onto their current jobs in the hope that when the economy does pick up, the floodgates will open and any financial shortfalls being currently experienced will be compensated. I dare say, perhaps setting us up for a further feast or famine scenario. In the meantime, lets all take the opportunity to finetune our professional skills and learn to do more with less. Good luck to everyone.
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