Salary gap between Western and Asian expats shrinking in the UAE

Asian expats in the UAE are beginning to receive salaries that are more on par with those awarded to their Western colleagues.

A survey by Gulf Business Review in March this year found Western expats in the UAE earned around $11,936 on average – 34.8% more than Asians, who were paid at $8,853. But the new Cost of Living Middle East report suggests the large disparity could be a thing of the past.

“This year’s Cost of Living UAE Report findings show the difference between the traditionally higher Western expatriate salaries versus Asian expatriate salaries is in fact abating,” says Rebecca Wilson, head of analysis at Cost of Living Middle East.

"It is due to the unwavering global economic forces coming into play, and the fact that the recession in the developed world has simply outlasted the recession in the developing world,” she added.

Wilson says there is “empirical proof” that the gap is reducing mainly due to the fall in emigration to the UAE.

"Developing economies such as the Indian economy are screaming out for qualified labour, because of their sustained growth rates. As a result, there's less emigration to the UAE. Consequently, the difference between a typical Westerner's salary and a typical Asian's salary is continuing to reduce.”

This change is also reflected in the types of jobs undertaken by different nationalities.

“We're more frequently seeing Westerners working in bars, restaurants and retail chains and, reciprocally, we are seeing more Asians in the office environment than ever before," she said.

Do you believe that the pay gap between Asians and Westerners is shrinking? Tell us in the comments.