The income disparity between locals and expats in Qatar has grown to 98 percent and continues to rise, according to a new report from a global consulting firm. That means that nationals, on average, earn 98 percent more than expats.

The Hay Group measured the gap, which was 27 percent in 2008, 64 percent in 2009 and 88 percent in 2010, through compensation and benefit information of 41,000 employees from 117 organizations in Qatar across a variety of industries.

Gulf Times reports:

The consulting firm also said the recent decision to hike salaries of nationals by 60-120 percent in the government and public sector would not only fuel inflation but also increase the cost of labour and that pay in Qatar was on an average 20percent more than what was offered in other Gulf countries…

The oil and gas sector pays 100 percent higher than the market average and financial services also offers above the market average; (Harish Bhatia, manager of Reward Information Services at Hay Group) said together, these sectors employ 75 percent of the Qatari nationals in the workforce and employers in these sectors face an immediate increase in payroll costs.

The report does not go into the implications of the growing pay gap, but in a country where 85 percent of the population is comprised of expats, the information is sure to ruffle a few feathers.

What do you guys think?