Today's Edition
ALLAN JACOB (ALETIHAD)
UAE workers have reason to cheer as companies are expected to hike salaries by 4% next year, according to a report. More than a quarter of firms (28%) could boost hiring in 2025, said Mercer's Total Remuneration Report released on Thursday.
The report said there is demand for talent in the AI space, with 74% people in the country using AI at least once a week. UAE CEOs exude optimism and point to AI as a key driver in the country's next phase of growth with R&D, tech, space, and life sciences taking centre stage as the country goes full throttle with its planned economic diversification.
The consumer goods sector will see the highest salary hike at 4.5%; life sciences are projected to bump salaries by 4.2%, while technology workers can expect a 4.1% rise. Energy sector workers could get a 4% increase in remuneration in line with the overall increase in salaries predicted by Mercer.
More than 700 companies were covered in industries ranging from energy, finance, real estate, manufacturing, retail, services, life sciences, and technology.
“It is very encouraging to see a large segment of UAE employers planning to increase base salaries in 2025, reflecting a resilient and optimistic economic outlook.
"In addition to increasing salaries, HR professionals should also review their housing allowances, in light of increasing housing costs in the country, to remain competitive,” said Andrew El Zein, Mercer’s UAE Career Products Leader.
Commenting on trends that will shape the UAE's employment landscape, Ted Raffoul, Mercer’s Middle East Career Products Leader, said, “Generative AI and automation are rapidly transforming the job landscape, shifting the skills our workforce needs and placing additional pressure on salaries.
"Business leaders play an important role in nurturing digital literacy and cultures that are open to change, so employees at all levels can be prepared for the future of work," he added.
