Equal opportunity employment

We always hear talk of pay gaps between nationalities…
From a historical perspective, in the early 1980s, most people working in the UAE were expatriates from multinational or oil companies. They were paid the same amount as they would be at home in the West.Administrative and white collar workers from the developing world were paid a flat rate, and considered to be a ‘local hire’.

But that’s no longer the case?
Nowadays, it’s all about supply and demand. For every job, from secretary to managing director there is a market rate and up to four or five suitable candidates available for many jobs. A Filipino or Indian secretary, for example, might earn Dhs7,000 per month in a junior role. The ball is in the employer’s court as the pay is still much higher here, perhaps up to four times more. The employer will always go for the cheapest option because it makes business sense. In contrast, a Western or Arab secretary might make Dhs15,000 in an executive PR role. And there’s very little chance of this pay gap changing.

So the pays are somewhat fixed, but different nationalities seem to get different jobs?
Basically. The biggest industry in Abu Dhabi is of course oil, and the major oil centres are in the USA and the north sea area, so senior engineers working in Abu Dhabi are often Westerners, whereas the junior engineers are often from the developing world, such as India. Things like this strengthen the pay gap even further.

And will this always be the case?
The only way I can foresee this pay gap narrowing is through decreasing Western salaries. And this is a possibility, as the rents are dropping dramatically; Abu Dhabi is seen to be opening the purse strings and pouring lots of money into infrastructure, which will attract more people to work in the city. The amount of commuters living in Dubai and working in the capital will also increase. These factors could cause Western salaries to drop.

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