LONDON: The introduction of VAT in the Gulf is stoking salaries for tax specialists across the region, according to recruitment firms.
With just over 11 weeks to go before companies start to add value added tax on their invoices, companies are busy hiring accountants with VAT expertise while big firms such as PwC run courses to meet anticipated demand.
“Candidates who are VAT specialists can expect to be paid well given the demand for their skill set and the shortage of qualified candidates with it,” Andy Georgeson, senior consultant at Michael Page Finance, told Arab News.
Salaries vary considerably but VAT managers in the UAE currently earn between 30,000 to 40,000 dirhams ($8,185-$10,890) per month — but rising considerably for senior roles in large corporations.
PwC last month introduced the first VAT diploma across the Gulf as some companies favor upskilling existing workforces rather than hiring new staff in order to get ready for the introduction of the new tax from January next year.
The need to give people the skills and knowledge to implement and comply with the new tax was, according to Amanda Line, PwC’s academy partner, why PwC introduced the VAT diploma.
“I am confident that this qualification will be fundamental in upskilling specialized tax professionals who can then prepare their organizations for VAT compliance,” Line said.
The introduction of the new tax is benefitting the Big Four accountancy firms as companies outsource tax advice to consultants, Georgeson added.
Yet despite the imminent introduction of VAT, some companies are burying their heads in the sand, said Chris Greaves, managing director of Hays in the Gulf.
“Our ‘VAT in the UAE’ report, released earlier this year, found over half of organizations based in the region did not have a strategy in place for VAT implementation.
“Of those that do, we are noticing that they are either absorbing VAT requirements into their existing workforce — some using their oversees teams for support, or outsourcing activity by engaging with external consultancies.”
He said it was difficult to predict how the introduction of VAT will affect hiring demand until it is up and running.
“There are still laws to be announced but once these are confirmed, there may well be an uplift in hiring as organizations become clearer on what they still need to achieve in order to meet the deadline.”
That view was shared by Georgeson, who added: “We are currently working on multiple VAT roles across the UAE and Saudi Arabia but we certainly expect this to grow as we get closer to the implementation date and thereafter.”
As many as 5,000 finance and accounting jobs could be generated with the introduction of VAT in the region, estimated Paul Drum, head of policy at CPA Australia.
Saudi Arabia and the UAE have both set VAT at a rate of 5 percent. The pair are the first to have introduced VAT legislation since all six members of the Gulf Cooperation Council (GCC) agreed in 2016 to introduce the tax.
Tax accountant salaries surge as Gulf VAT-day approaches
Tax accountant salaries surge as Gulf VAT-day approaches
RLC Global Forum highlights role of Saudi youth in retail digital shift
RIYADH: Saudi Arabia’s young and highly digital population is reshaping how the Kingdom’s retail sector adopts new technologies and artificial intelligence, advancing faster than many global competitors, industry leaders told Arab News.
Speaking on the sidelines of the RLC Global Forum in Riyadh, executives told Arab News that the intersection of a youthful population and strong investment in AI is driving a shift in the industry’s priorities.
From understanding consumer behavior to leveraging the Kingdom’s growing status as a global AI leader, Saudi Arabia is becoming as a unique destination for the retail sector to thrive, learn, and evolve in the digital sphere.
Abdullah Al-Tamimi, CEO of commercial real estate company Hamat Holding, told Arab News that the firm is keen to analyze and understand consumer behavior, with a particular focus on the younger generation as a key part of that insight.
“Actually, it’s a big part of our day-to-day operation,” he said, adding that the company invests heavily in understanding customer needs and behavior and works to correct any missteps.
Al-Tamimi emphasized paying close attention to small details, noting that younger consumers are especially sensitive to the overall experience and “deserve that we work around the clock in order to improve it.”
He added that this focus “can be a competitive advantage for Saudi Arabia as well.”
Al-Tamimi said that as the younger generation grows accustomed to new technology shaping retail customer experiences, Hamat Holding is leveraging AI to enhance them further.
“We started a couple of initiatives improving digitalization,” he said, adding that the company sees digital tools as a way to enhance its work by automating day-to-day operations and allowing teams to focus on bigger-picture and more complex tasks.
While the firm has expanded its use of technology, he stressed it has not replaced human workers, emphasizing the continued importance of human capital for creativity and interaction. “AI is a big part of our strategy,” Al-Tamimi added.
Amit Keswani Manghnani, chief omnichannel and AI officer at luxury goods retailer and distributor Chalhoub Group, told Arab News that bridging a younger customer base with continuous digital development is key to advancing the Kingdom’s retail strategies.
On Saudi Arabia’s demographics, he said: “We look at 2030 as really building products which serve especially the younger population, which is growing and very digitally savvy.”
Manghnani underscored the unique characteristics of the Kingdom’s retail market as a tool for developing effective products and customer experiences.
“So it’s very digitally savvy, much more than in other markets,” he said, noting that e-commerce penetration is rising not only through online purchases but also via digital catalogs that drive in-store visits.
Manghnani said investment is focused on making products more digitally accessible and easier to use, while strengthening customer service to meet the expectations of what he described as a demanding but welcome consumer base. “Service excellence, digital — all these things together are how we are tapping into the younger population, which again is extremely savvy.”
Manghnani reinforced Al-Tamimi’s point that the Kingdom holds a competitive advantage, citing the speed at which its retail and technology industries are aligning.
“As a market, we’re tending to see the adoption of digital,” he said, referring to AI, data and other forms of digital interaction, adding that these tools are increasingly being combined.
He noted that this market is moving “much quicker than the other markets.”
The two-day RLC Global Forum brought together more than 2,000 global leaders, policymakers, and innovators from over 40 countries over the two-day event to define the next chapter of growth across retail, consumer, and lifestyle industries.
