Report: Salary raises across Qatar in 2016 to be lowest in five years

Qatar employers are expected to show more restraint when doling out raises in 2016 compared to past years thanks to a slowing economy, a new report has found.

According to projections made by HR consulting firm Mercer, remuneration increases in Qatar will average 4.9 percent this year.

That’s the first time the figure has dipped below 5 percent in five years, the company said in a statement.

The forecast comes as inflation in Qatar remains modest by international standards, although researchers at Qatar National Bank said they expect the rise in the cost of living to accelerate over the next two years.

Several of the country’s largest energy firms, such as RasGas, Maersk Oil and Qatar Petroleum have all laid off staff over the last year.

Meanwhile, regional competition for skilled construction workers – which has driven up wages in recent years – is easing as governments in the region cancel or postpone projects in response to lower revenues.

The explanation, the ministry said, “lies entirely in the performance of the oil and gas sector.” Low energy prices, the government added, have discouraged oil and gas firms from making additional investments in Qatar.


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