Wages for high-skilled labour across the Middle East are forecast to surge in the coming period, as talents appear to be lacking, a new study by Korn Ferry said.
In Saudi Arabia, salaries may increase by more than 17%, which could add around $33.6 billion to payrolls, the study titled “The Salary Surge” showed.
In the UAE, wage growth for in-demand workers may add about 9% or $5.9 billion to the country’s overall payroll by 2030.
The expected increase in salaries in the UAE and Saudi Arabia are likely to have strong effect on the media, technology and telecommunications sectors, the study indicated. It forecast that these two sectors would be the most impacted with a potential wage premium of $1.1 billion and $2.4 billion, respectively, by 2030.
“This is a challenge facing both corporate and government leaders planning for economic success in the new economy,” regional director at Korn Ferry Products MENA Harish Bhatia stated.
Bhatia further highlighted that in the public sector, “the longer-term solution starts in the education sector and how we are preparing our students with new skills more adaptable to the future of work.”