Biggest Dubai bank reportedly gives staff pay rises for inflation
Most Emirates NBD employees get hikes of 5%-8%, but top executives receive smaller or no increases
Dubai’s biggest bank Emirates NBD has given most employees a pay rise of up to 8% to help cushion against rising costs of living driven by inflation, according to two informed sources.
The increases vary according to seniority and are part of a mid-cycle salary adjustment for inflation, with top executives receiving smaller or no increases, said the sources.
Most employees got pay rises of 5%-8%, with lower-paid staff receiving the biggest increase, said one of the sources.
Emirates NBD, majority owned by Dubai’s government, said it did not comment on staff-related matters.
“As a people-first organisation and a leading employer, Emirates NBD has remained committed to initiatives and policies that support staff wellbeing, while adopting a robust employee recognition programme,” a spokesperson said in an e-mail Reuters.
It was not immediately clear if the salary increases were only for employees in the United Arab Emirates. The lender also has operations in Egypt, India, Turkey and elsewhere.
Annual inflation in the oil-producing Gulf state reached 3.4% in the first quarter, according to the central bank, which has projected 5.6% inflation for the year. The UAE has not published monthly inflation figures this year.
The trajectory of price increases represents a significant turnaround from deflation throughout 2019, 2020 and the first seven months of 2021.
In recent months people have voiced concern about the UAE’s rising cost of living with retail fuel prices now up about 55% so far this year but down from a high of about 80%.
The UAE is the only Gulf Arab country without a cap on domestic fuel prices, leading to petrol costs surging at the pump.
According to Betterhomes, average rental prices in Dubai rose 29% for apartments, 33% for town houses and 64% for villas in the first half of the year as the property market continued a strong Covid-19 recovery.
Emirates NBD in late July reported a 42% jump in second quarter profit to 3.5-billion dirhams ($952.98m).
The Central Bank of the UAE has increased its base rate 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 battle historic inflation.
Reuters