Today's Edition
MAYS IBRAHIM (ABU DHABI)
The majority of employees in the UAE and wider Gulf region were awarded pay increases of 4% to 6% for their efforts in 2024, according to the Annual Salary Report 2024-2025 by recruitment consultancy Nadia Global.
This trend follows a period of steady salary hikes, with incomes rising by 5% in 2022 and 6% in 2023. However, it contrasts with Nadia Global's earlier expectation of double-digit increases following 15 years of single-digit growth.
While salaries for new recruits now align with current market rates, Nadia Global warns that an influx of overseas candidates willing to accept lower wages is disrupting the balance.
Similar trends are emerging in other hiring surveys.
"Employers are firmly in the driving seat in the UAE, as more expats flock to the region to one of the world's most desirable locations to experience the lifestyle and benefit from the growing economy," the 2025 UAE Salary Guide issued by Robert Half stated.
The UAE was ranked the 10th-best destination for expatriates in the 2024 Expat Insider report, released by global network InterNations.
Employees recognise that increased competition for jobs in the UAE leaves them in a weaker position, according to Robert Half.
Its survey revealed that 75% of UAE employees find it harder to negotiate pay rises compared to last year, with over half (52%) believing they could be easily replaced by their employer.
As a result, two-thirds (65%) of employees are remaining in their roles out of necessity rather than preference.
While the influx of expats has led to a surplus of labour, business leaders report difficulty in finding candidates with the right skills.
Approximately 47% of employers agree that although it is easier to find workers, finding candidates with the right skills remains a challenge. Additionally, 19% of employers noted difficulty in finding candidates with prior UAE experience.
Despite these challenges, 63% of business leaders expect to increase headcount over the next year, with 50% citing business growth as the main driver.
Overall, 67% of employers are confident about their organisations' growth prospects for the year ahead.
When it comes to employee priorities, the survey revealed that 44% of UAE workers consider salary the most important factor when switching jobs, followed by access to training (37%), career progression (34%), benefits (34%), and corporate values (32%).
