UAE jobs: Employees unlikely to receive a salary increase next year, poll finds

About a third of companies offered new hires lower salaries due to surge in candidate numbers

Inflation will effectively lead to a pay cut for those on stagnant salaries. Jeff Topping / The National

The average professional will see little or no salary growth in 2025, a poll of more than 1,000 companies in the Gulf has shown.

Recruitment firm Cooper Fitch said wages in the UAE would be largely flat next year due to a surge in population and influx of jobseekers.

The report was published as inflation in Dubai runs at 3 per cent and 2.4 per cent nationwide, driven by rising rents, which would feel like a wage cut for many. The UAE led the Gulf in terms of job creation in the third quarter of this year with an 8 per cent increase.

Over the past 12 months, 41 per cent of UAE employers raised salaries for new hires, with 7 per cent increasing wages by more than 10 per cent, the data found. But 29 per cent said they had reduced salaries offered to new recruits.

About half of companies polled - 44 per cent - intend to increase salaries for new hires next year. More than a quarter of organisations have no plans to adjust salaries in 2025.

“Despite global economic shifts, the UAE continues to show remarkable job creation and economic growth,” said Trefor Murphy, founder and chief executive of Cooper Fitch.

“The past 12 months have been immensely positive for the UAE in terms of job creation … Key sectors such as real estate, banking and finance, and technology are continuing to attract talent from around the world.”

The UAE recorded a 42 per cent increase in the number of property professionals in the first quarter of this year compared to the previous quarter, and the volume of jobs posted in the sector increased by 94 per cent in the same period, the Cooper Fitch report said, citing data from professional network LinkedIn.

“The nation’s real estate sector continues to drive significant demand for talent, with markets like Dubai, Abu Dhabi and Ras Al Khaimah drawing property professionals from across the globe,” it added.

The technology industry also remains a catalyst for job creation in the Emirates. Recruitment related to artificial intelligence may not have reached the heights that some predicted, but 43 per cent of UAE-based respondents to a recent SAP YouGov survey identified a lack of talent in this field as a key challenge, the guide said.

Cooper Fitch said that airline-related recruitment has also risen in the country. Dubai-based Emirates airline’s workforce grew by 10 per cent to 112,406, its largest size ever, according to the carrier’s 2023-24 annual report. Abu Dhabi's Etihad Airways hired more than 2,300 new employees last year.

“The Emirates has also been a magnet for hedge funds over the past 12 months, attracting names such as Brevan Howard, Millennium and TCI Fund Management, with several other high-profile investment firms currently awaiting approval,” the consultancy said.

The report found that the mining, metals and natural resources, consulting and professional services, and hospitality, travel and tourism sectors represent the most significant talent gaps in the UAE at present.

Other industries facing a talent shortage include government and public sector, information technology and telecoms, logistics, transportation and supply chain, aviation, defence and aerospace, banking, financial services and insurance, real estate, construction and architecture, and marketing, advertising and public relations, according to Cooper Fitch.

Large bonus payouts coupled with population growth could serve to soften pay offers next year, the recruiter said.

Fifty-four per cent of organisations expect to grow their workforce over the next 12 months. Conversely, 31 per cent of those polled anticipate a reduction in headcount in the next year.

“It is interesting to note that the proportion of organisations anticipating expansion, contraction and stability in their workforces over the coming year is almost identical among respondents from the UAE and Saudi Arabia, suggesting parity between both markets,” the report said.