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Money, Money, Money

Money, Money, Money

The UAE government has announced that all Emirati federal government employees will see a 70 percent increase of their basic salaries.

December 21, 2009 1:30 by

According to estimates, Dubai’s total debt is between $80 and $100 billion. Morgan Stanley recently said it expected the emirate’s overall public and quasi-public debt to have reached $108 billion, or 140 percent of the GDP.

Meanwhile the real estate sector in Dubai and across the UAE is has yet to stabilize following the impact of the financial crisis. Several constructions sites in Ajman look like half-built ghost towns, and you can still find dusty abandoned cars parked on Dubai’s streets.

So, with this backdrop, a huge salary hike for government employees (not expatriate ones) feels a little inappropriate.

And it’s not just the timing; the UAE government has been vigorously pushing for emiratization in the private sectors in the last few years. Increasing public salaries when private companies are cutting pay will certainly not help its cause.

In March this year, Ahmad Humaid al-Tayer, the chairman of Emirates Nationals Development Programme (ENDP) said during a press conference that it was important to hire Emiratis in the private sector during the slowdown to “ensure a strong economy as they will enhance the economic cycle.”

“It is not logical that the private sector can accommodate thousands of the expatriate workforce and is not able to provide jobs for UAE Emiratis,” he said.

Kipp is guessing that it will be close to impossible to find even one private company that is currently planning to raise basic salaries by 50 percent. Or even 20 percent.

Goodbye private emiratization.

Editor’s note: Dear Craig, thanks for pointing out my poor mathematical skills. I have amended the numbers.

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  1. Andrew on December 21, 2009 2:38 pm

    Say hello to more inflation, just when it looked like things might stabilise for a while.

  2. Craig on December 22, 2009 8:14 am

    Kipp needs to re-look at his maths surely…? 70% of 1,175 for the lowest grade worker is not “just 25aed” but in fact a more reasonable 822.50 aed taking it up to the 2,000 aed per month….agree with all the other concerns in the article though, seems really bizarre timing and a shot in their foot as well…

  3. Craig on December 22, 2009 1:22 pm

    you’re welcome…

  4. DeniseTheMenace on December 27, 2009 12:20 pm

    So what happens to non-Nationals or non-Emiratis in Federal Govt services ??? And I thought USA’s historical past will always give it No. 1 position in Racism …. Some of these “kingdoms” need to wake up (actually its better if they proceed on this path…Future generations are ill destined beforehand…)


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