Salaries in Bahrain are predicted to rise by an average of seven per cent this year, according to an online survey by recruitment website GulfTalent.

It documented an average pay increase of 5.9 per cent last year and forecasts the biggest pay increases this year will be in the construction sector, which is expected to see average salary growth of 10 per cent, said a report in the Gulf Daily News (GDN), our sister publication.

This is followed by the logistics sector at 7.7 per cent and retail sector at 6.8 per cent.

The Bahrain forecast is included in GulfTalent's Employment and Salary Trends in the Gulf survey, which was conducted between December and last month.

It features feedback by 600 employers and 22,000 professionals working in the GCC, as well as 60 interviews.

Qatar is expected to see the highest average pay increases of 8.3 per cent this year, driven by rising costs of living and a growing need to attract talent for the completion of projects - with the 2022 FIFA World Cup only seven years away.

Oman is expected to see average salary growth of 7.2 per cent this year, followed by Saudi Arabia (7.1 per cent), the UAE (7.1 per cent), Bahrain (seven per cent) and Kuwait (five per cent).

The report also predicts overall employment growth across the GCC this year, despite the fall in oil prices.

Among Gulf countries Qatar is expected to witness the highest rate of job creation this year with 66 per cent employment growth, followed by Saudi Arabia (53 per cent), Oman (49 per cent), the UAE (47 per cent) and Bahrain and Kuwait (both 38 per cent).

Employment growth in Bahrain last year was put at 22 per cent.

The report found healthcare to be the fastest growing sector across the region, with 82 per cent of employers in the sector increasing their headcount last year - and 79 per cent planning to do so this year.

“Key drivers of this growth were found to be massive government investment, the region's fast-growing population and regulatory changes in most GCC countries requiring companies to provide health insurance for employees,” stated the report.

The survey revealed that the oil price slump had resulted in a slowdown in the oil and gas sector and some cutbacks in Oman and Bahrain.

“The governments of Saudi Arabia, Qatar and the UAE have this year been drawing on their vast cash reserves to make up for the lower oil revenues in order to meet their planned spending and investments,” it said.

“Bahrain and Oman have experienced a greater impact, due to their lower reserves and higher dependence on the oil revenue.

“According to data from the International Monetary Fund, the Bahrain government needs to sell its oil at $125 per barrel to balance its budget, compared with the current price of oil at $66.”

One finding of the survey was that employers across the region were finding it increasingly difficult to attract professionals from India, traditionally a key source of talent for the Gulf, because of the growing Indian economy.

The report also documented an increase in the number of people from Middle East countries affected by conflict looking for work in the Gulf.

However, it said employers were often frustrated in their attempts to recruit those jobseekers due to restrictions on hiring nationals of affected countries. - TradeArabia News Service