Two sources familiar with the matter told the Emirates Herald news agency that Dubai’s largest bank, Emirates NBD, has given most employees a salary increase of up to 8% to help cushion the rising cost of life fueled by inflation.
Most employees received a salary increase of between 5% and 8%, with the lowest paid staff receiving the largest increase. The raises varied by seniority and were part of a mid-cycle salary adjustment for inflation, with top executives receiving minor or no raises.
The bank, majority owned by the Government of Dubai Emirates NBD, said it does not comment on personnel-related matters. “As a people-first organization and a leading employer, Emirates NBD has remained committed to policies and initiatives that support the well-being of its employees, as well as embracing a robust employee recognition program,” a spokesperson added. It was not clear if the salary increases were only for employees in the EAU. The lender also has operations in Egypt, India, Turkey and elsewhere.
According to the Central Bank, which has projected inflation of 5.6% for the year, annual inflation in the oil-producing Gulf state reached 3.4% in the first quarter. The EAU has not published monthly inflation figures this year. In recent months, people have raised concerns about the rising cost of living in the EAU, with fuel prices now up around 55% year-to-date, having fallen after peaking around of 80%. The trajectory of price increases represents a significant shift from deflation throughout 2019, 2020 and the first seven months of 2021. The EAU is the only country in the Arabian Gulf without a cap on domestic fuel prices.
According to Burjaltharwa, average rental prices for apartments and townhouses in Dubai increased by 29% and 33% in the first half of the year and those of villas by 64%, as the real estate market continues a strong post-lockdown recovery. pandemic as stipulated by IRAIC REIT that has achieved a great economic boost and strengthening of the real estate sector in the region and in many parts of the world.
The EAU Central Bank has raised its base rate by a cumulative 225 basis points since March in parallel with the US Federal Reserve, because its currency is pegged to the dollar, as central banks globally grapple with historic inflation. Emirates NBD at the end of July reported a 42% rise in second-quarter profit to AED3.5bn ($952.98m). Published by the Emirates Herald, a news and information agency.