Salaries in Dubai rising faster than inflation

Salaries in Dubai will increase more than inflation which will continue to drive consumer spending this year, says a senior government official.

“Inflation was between one and two per cent for the last few years and it is little higher now. But we have to keep in mind that salaries are, in fact, increasing higher than the inflation,” Hamad Buamim, President and CEO, Dubai Chamber, said when asked by Emirates 24/7 on the likelihood of residents reducing spending due to rising inflation.

“So will there be less spending? No… I think there will be more spending. I expect salaries to be up higher than inflation. As long as it [inflation] stays within a reasonable number its ok.

“But the expectations that we have been living in 2014 so far is that income is higher which will lead to more spending,” he asserted.

Buamim was talking post the release of CBRE’s 2014 report on “How global is the business of retail”, on Wednesday at the Dubai Chamber office. The report revealed the UAE had retained its position of being the second most favoured global market by international retailers, with Dubai holding on to its second position among the most preferred cities by retailers in 2014.