UAE construction salaries take 25% hit in 2010
Report reveals packages for professionals 'considerably lower' in 2010
Salaries among construction sector employees in the UAE have declined by up to a quarter this year due to the slowdown in demand for workers and the delaying of projects, it was reported on Sunday.
As demand for engineers, architects and project managers declines in the UAE, Mark Baxter, Middle East regional director of global recruitment agency FiveTen Group, told Emirates 24/7 that salaries had dropped accordingly.
“The salary package offered to [construction professionals] now is considerably low, compared to a couple of years ago. On average these positions have seen a fall of fifteen to 25 percent drop in salary levels, although it depends on companies and the project they are working on," Baxter is quoted as saying.
"Salary in the construction sector has been sharply hit, simply because the demand for such professionals has decreased. Management level construction jobs such as project managers, quantity surveyors, structural engineers, have seen a drastic fall in salary levels," he added.
Baxter said that demand for management level construction professionals was down by around 30 percent in Dubai and up to 25 percent in Abu Dhabi.
Mike Al Nassir, partner in charge of Middle East, Africa and India at the Pedersen & Partners recruitment firm, said the biggest decline was not in basic salaries but in non-salary benefits or perks, such as housing allowances and return tickets. Al Nassir told the website that such benefits were down by around 40 percent.
In April, research company Proleads said a total of 1,296 construction projects worth more than $418bn are currently being built in the UAE.
However, it added that 842 projects with a total value in excess of $350bn were on hold as a result of the economic slowdown and a further 111 projects valued at more than $14bn have been cancelled.
Construction is not the only sector to be hit, with executives in the banking and finance sectors also seeing their salaries decline, the report added.