MANAGING DIRECTOR S LETTER

Transcription

1 ENERGY SALARY GUIDE UAE 2014

2 CONTENTS MANAGING DIRECTOR S LETTER 2 ENERGY 3 POWER GENERATION 4 OIL & GAS 6 UNDERSTANDING THIS GUIDE 8 TALK TO US 9

3 MANAGING DIRECTOR S LETTER Welcome to Morgan McKinley s UAE Salary Guide This guide provides insights into salary trends in key disciplines and professional communities within the Gulf Cooperation Council (GCC) region, based on what we have observed over the past year, together with a compilation of hard facts and figures on gross salaries. Morgan McKinley s UAE operation is focused on sourcing talent for mid-management and senior roles for Banking & Financial Services, Accountancy & Finance, Energy, Sales & Marketing,Supply Chain, Manufacturing, Construction, and Office Support throughout the GCC. The GCC is one of the most economically dynamic regions in the world, with the UAE leading the way across the Gulf region and this is very much reflected in the buoyancy of the recruitment market and the resultant hiring trends. In our last report we reported that reverberations from the Eurozone crisis led to a subdued recruitment drive among UAE-based multinationals in 2012 but commented that there were signs of returning confidence. We predicted an upward trend. Results from 2013 have vindicated this positive outlook. Dubai, with the other Emirates, is the employment hub for the region, with rising levels of demand for consumer goods driving demand for more Sales & Marketing and Supply Chain professionals across the Gulf region. Rising levels of demand within both the green and traditional energy sectors also mean a growth in opportunities for Power Generation professionals. Inward and local investment in sectors such as FMCG, packaging and chemicals is creating demand for Manufacturing professionals, especially those with knowledge of techniques such as Six Sigma, as well as Accountants. With many new projects announced recently, there is a significant demand for professionals in the Construction and Oil & Gas industries, with Iraq particularly short of oil industry specialists. With the three main credit ratings agencies improving their ratings, the high level of business activity and improvements in balance sheets and liquidity, confidence is high in the Banking & Financial Services sector. In 2014 we expect to see an increase of 8% to 10% in the number of job opportunities across all industry sectors and salaries rising in the range 6% to 8%. Less easy to predict is the change in the cost of living over the coming years, although it is safe to say that in many countries the only way is up, putting pressure on employers and presenting candidates with some tough choices. However, Morgan McKinley will as ever be well placed to advise on important issues such as local accommodation and schooling. We hope you find the insights presented in this report interesting and useful, and welcome any feedback. Trefor Murphy Managing Director UAE T: +971 (0) tmurphy@morganmckinley.ae The UAE returned to growth in 2013 and this growth looks certain to accelerate in 2014, with a renewed focus on the infrastructure, tourism and construction sectors, especially in light of the news that Dubai will host Expo Morgan McKinley has spent the past 16 years recruiting mid to senior professionals in the GCC market. 2

4 ENERGY POWER GENERATION OIL & GAS 3

5 ENERGY POWER GENERATION HIRING TRENDS TALENT SUPPLY SALARY & COMPENSATION TRENDS The power generation, transmission and distribution sector in the Middle East and North Africa continues to grow significantly, with the IPP/IWPP, OEM and international EPC contractors in the Middle East reaching almost 100 projects worth a combined US$40 billion starting in This is in line with expectations, as Middle Eastern energy demand is expected to grow by 76% between now and There will be a 41% drop in oil-led power generation, with natural gas-fired power generation surpassing oil-based fuel sources by then. Solar energy is playing an increasingly important role, with growth in this area expected to reach 3.5GW by 2015 in the region, with a target of 10GW capacity by Currently there are 106 renewable energy projects supplying 7.5GW of new electric generation capacity. The main focus of demand is Turkey and Saudi Arabia. The waste-to-energy market is expected to grow to reach $29 billion by 2016 while construction on the first of the UAE s nuclear power plants began in Barakh in By 2020 it will operate four reactors, with a 5.6GW capacity. All of these developments are having an impact on the hiring needs of the leading developers, operators, EPC contractors and national utilities. The power industry continues to rely on importing expatriate talent into the region for many higher level roles. However, in line with the region s nationalisation strategy, there is a trend towards moving locally grown talent into positions offering more responsibility and authority. This in turn will enable competitors to seek talent in their back gardens. Home-grown or regionally-based talent is attracting the most interest for the mid level management positions, however, unconventional, nuclear and renewable energy experts will continue to be recruited from more established markets for the foreseeable future, until such expertise can be developed in the region. The shortage of talent continues to favour the employee over the employer and attracting the best in the market requires a proactive headhunt approach together with the necessary carrot in order to make a career change attractive. As with any technically qualified, highly specialised sector search, recruiters without the necessary and exposure to the power industry are unlikely to source this talent successfully. Therefore for the vast majority of headhunt contracts, Morgan McKinley is winning retained and exclusive search agreements with independent power producers, OEMs and engineering procurement construction contractors. With so many professionals coming in from other regions, it may be worthwhile to define the common structure of expatriate packages as this has changed since Many employers have started to consolidate basic salaries with allowances into lump sums paid into the employee s bank account. The main pillars continue to be basic salary, accommodation allowance and transportation allowance. Flights to the country of origin plus medical insurance continue to be treated separately, with single or family cover depending on the level of the employee. Additional benefits likewise vary according on the level, family status and location of employment, with education costs continuing to be a major factor in living in the Middle East. Bonuses continue to be variable depending on the organisation. There is, however, a steady rise in salaries in the industry as more projects come online and competition increases, but rising costs must be taken into consideration; in Dubai alone rents have risen by 33% in the second half of 2013, which is having a negative impact on the disposable incomes of employees as the market is yet to catch up with this increase. We anticipate employers will compensate for this in 2014 through increases in base salary over benefits and bonuses in order to remain competitive in a growing, candidate-driven market. The UAE and Qatar continue to offer the best packages, while Bahrain s salary deals are placed third in the GCC. Packages in Saudi Arabia, Kuwait and Oman are all of a similar level.. 4

6 ENERGY POWER GENERATION GROSS SALARIES (AED PER MONTH) Role: 0-3 years 3-5 years 5-8 years 8+ years Managing Director / CEO - Multinational 55,000-65,000 65,000-75,000 75,000-90,000 90, ,000 Manager Director / CEO - SME 50,000-60,000 60,000-70,000 70,000-80,000 80, ,000 General Manager - Multinational 45,000-55,000 55,000-65,000 65,000-80,000 80, ,000 General Manager - SME 35,000-45,000 45,000-55,000 55,000-70,000 70,000-90,000 Plant Manager 25,000-30,000 30,000-40,000 40,000-45,000 45,000-55,000 Engineering Manager 20, ,000-32,000 32,000-40,000 40,000-50,000 Production Manager 20,000-25,000 25,000-32,000 32,000-40,000 40,000-45,000 Operations Manager 22,000-25,000 25,000-30,000 30,000-37,000 37,000-45,000 Technical Sales Manager 25,000-30,000 30,000-35,000 35,000-40,000 45,000-55,000 Sales Engineer 10,000-12,000 12,000-15,000 15,000-19,000 19,000-25,000 HSQE Manager 18,000-22,000 22,000-30,000 30,000-40,000 40,000-50,000 Commissioning Engineer / Manager 18,000-22,000 22,000-30,000 30,000-40,000 40,000-50,000 Process Engineer 11,000-15,000 15,000-18,000 18,000-22,000 22,000-26,000 Technical Engineer 10,000-12,000 12,000-15,000 15,000-18, ,000 Production Team Leader 8,000-11,000 11,000-15,000 15,000-20,000 20,000-25,000 Estimation Engineer 7,000-10,000 10,000-12,000 12,000-15,000 15,000-17,000 Technician 5,000-8,000 8,000-10,000 10,000-12,000 12,000-15,000 5

7 ENERGY OIL & GAS HIRING TRENDS TALENT SUPPLY SALARY & COMPENSATION TRENDS Over the past 12 months the oil & gas (O&G) industry has seen an increase in the number of opportunities, especially within the MENA (Middle East and North Africa) region, where the demand for skilled professionals remained high. The region has d further exploration, production and an increase in infrastructural development. Iraq in particular has d a significant increase in hiring as new mega projects were launched. Political upheaval and security threats still remain a concern; however Iraq has the fourth largest oil reserves in the world and continues to attract foreign O&G companies. North Africa is also a region which is set to grow rapidly. At the North Africa O&G summit in November 2012, high-level representatives from African governments, ministerial departments, NOCs, IOCs, contractors and technology providers attended to discuss efficient strategies to capitalise on the numerous opportunities in the region s oil and gas sectors. Discussions at the conference focused on lucrative means to enhance production from existing fields. Many of these discussions are now being realised. Thus hiring trends will continue to be buoyant for 2014 across the MENA region. The industry generally has a skills shortage as MENA remains the leading producer of O&G and there is a consistent increase in demand for O&G professionals regionally. The Middle East is, however, facing real competition from other parts of the world. This places the job seeker in the driver s seat in negotiations. Employers therefore are required to offer higher and more attractive salary packages in order to incentivise would-be employees. There has been some shift in the market with countries including Saudi Arabia, Oman, Algeria, Tunisia, Kuwait and Bahrain focusing on the mapping of unconventional gas resources, which is translating into the need for even more specialists and skilled professionals, who are in scarce supply. Based on the recruitment assignments Morgan McKinley has conducted with O&G companies in the region, 2013 saw an increase in salary and compensation of around 6% a larger increase than the 5.1% we predicted in the 2012 survey has been a good year for many O&G professionals with an increase not only in salaries but also benefits and conditions. On the other hand, we have also seen costs such as housing, rents and schools go up further, especially in locations such as Dubai, Doha and Muscat, which translate into d jobseekers demanding higher salary packages. Nevertheless, with the continuous demand for the production of O&G and the healthy price of oil on global markets, companies are willing to offer attractive bonuses and incentivised salary packages. With an undersupply of local talent, the growing energy demand and the oil price, we continue to see a candidatedriven market. Following the Arab Spring of 2011, the Middle East is challenged with rebuilding infrastructure and revitalising the industry. With the price of a barrel of oil expected to remain above US$100, the trend of a rising demand for foreign workers is set to continue into

8 ENERGY OIL & GAS GROSS SALARIES (AED PER MONTH) Role: 0-3 years 3-5 years 5-8 years 8+ years Exploration Director 58,000 65,000 71,000 76,000 Exploration Manager 53,000 57,600 61,000 65,000 Petroleum Engineering Manager 52,500 56,000 58,500 63,000 Geologist 23,000 27,000 33,000 44,500 Geophysicist 24,500 27,800 34,000 45,000 Reservoir Engineer 26,000 33,500 39,000 51,000 Drilling Engineer 28,500 34,000 43,000 53,000 7

9 ENERGY SALARY GUIDE UAE 2014 UNDERSTANDING THIS GUIDE METHODOLOGY: The salary information provided in this guide has been compiled by dedicated researchers across Morgan McKinley s oil & gas and power generation divisions. Our researchers are in regular contact with both employers and candidates across these sectors in the UAE. SALARY DATA: The salary ranges in this guide are indications of what individuals with similar might expect to earn in new roles in This salary data is based on placements made during the last six months, as well as the specialist knowledge of Morgan McKinley s consultants. Please note, the information presented in this document should be used as a general guide only. Where number of years is mentioned, it is only to give an approximate framework in which to gauge what a typical professional is likely to earn with the level of shown. In order to match candidates to the right career opportunity for them, Morgan McKinley assesses individuals on all their skills and abilities when deciding on their suitability for roles with our clients. Finally, the gross salary is quoted which is defined as the total gross salary paid each month not including bonus payments, guaranteed or otherwise. FURTHER INFORMATION: For more specific salary or hiring information, please visit or contact your Morgan McKinley consultant directly. DID YOU FIND THIS GUIDE USEFUL? FOLLOW US ON SOCIAL MEDIA Visit for more information 2014 Morgan McKinley Group Ltd all rights reserved. Copy or reproduction of this material is strictly prohibited. 8

10 WE ARE MORGAN McKINLEY. TALK TO US. The world s leading employers and successful local businesses must be doing something right. We believe we know what that is. UAE dubai@morganmckinley.ae +971 (0) Australia sydney@morganmckinley.com.au +61 (0) China shanghai@morganmckinley.com France paris@morganmckinley.fr +33 (0) Ireland ireland@morganmckinley.ie +353 (0) Japan japan@morganmckinley.co.jp Singapore singapore@morganmckinley.com.sg United Kingdom london@morganmckinley.co.uk +44 (0) Hong Kong hk@morganmckinley.com.hk DID YOU FIND THIS GUIDE USEFUL? FOLLOW US ON SOCIAL MEDIA 9