Emirati Dirhams © 123RF
Emirati Dirhams © 123RF

Supply chain salaries in UAE to rise 4-6% in 2016

16 March 2016

Salaries in the UAE are likely to remain flat throughout 2016, but procurement is likely to buck the trend as the function gains importance across the Gulf region.

According to a report by recruiter Morgan McKinley, supply chain professionals are likely to see salaries rise by 4% to 6% in 2016.

This is because investment in manufacturing capability in the Gulf region has increased and with it, the prominence of the region’s supply chain professionals, said the firm in a report.

“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,” it said.

“Those with procurement experience 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.”

In the UAE and Saudi Arabia, for example, warehouse and distribution managers are in particularly high demand as there has been strong growth in manufacturing and distribution.

A shortage of experienced procurement professionals locally means employers are recruiting from regions with advanced manufacturing industry.

Yet people with spoken and written Arabic and an understanding of the local culture are particularly valued.

Technical degrees command high salaries but increasingly skills such as neuro-linguistic programming are considered to enhance negotiating skills and command a premium.

In other sectors employees will be more concerned about keeping their positions than seeking pay increases, said a Morgan McKinley report focusing on the UAE.

And the fall in oil prices means the oil and gas recruitment market is set to have its most difficult year for more than a decade.

Aviation supplies, medical and pharmaceutical and FMCG companies will be driving recruitment in 2016, according to the report. 

The report also forecasted a greater demand for consultancy services whilst there’s a hold on permanent headcount hiring.

The outlook for salaries beyond mid-2016 depended on oil prices, the report continued.

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