Amidst a backdrop of economic growth and increasing demand for talent, the United Arab Emirates (UAE) is witnessing a surge in salaries, outstripping the rise in the cost of living. The latest findings from the Mercer Middle East Total Remuneration Survey for 2024 highlight a promising trend for employees in the Emirates, with average salaries projected to increase by 4%—a notable jump compared to the 2.3% rise in inflation.
The buoyancy in salary increments is particularly evident across various sectors, with energy companies leading the pack with a 4.3% increase, closely followed by consumer goods firms at 4.1%. Even industries like life sciences and high-tech are expected to offer substantial hikes of around 4%. This positive outlook builds upon the momentum of 2023, where average salaries across all industries in the UAE saw a commendable increase of 4.1%.
Andrew El Zein, principal for Careers in the MENA region, underscores the stability and excitement within the UAE job market. However, he acknowledges a pressing concern: the escalating cost of living, driven primarily by soaring rents in recent years. Despite this challenge, the UAE remains an attractive destination for job seekers, boasting a plethora of opportunities and in-demand roles.
Yet, the burgeoning demand for talent has sparked intense competition among companies, both domestically and regionally. Firms from neighboring countries are vying to attract and poach skilled workers, intensifying the battle for top talent within the UAE. In response, employers are exploring various long-term and short-term incentives, along with retention plans, to safeguard critical talent.
The pursuit of Emiratisation, aimed at increasing the representation of Emirati nationals in the private sector workforce, further amplifies the competition. El Zein highlights the untapped potential within the Emirati women segment, signaling a significant opportunity for both employers and job seekers alike.
Against this backdrop, the Mercer survey unveils optimistic prospects for workforce expansion, with 16.3% of UAE firms planning to increase their headcounts in 2024. Conversely, 7.8% intend to reduce their workforce, while the majority (75.9%) remain stable in their hiring plans.
The survey’s findings extend beyond the UAE, painting a favorable picture for the entire GCC region, where salaries are set to outpace inflation. However, challenges persist in other parts of the Middle East, where economic dynamics struggle to match the robust growth witnessed in the oil-rich Gulf states.
Looking ahead, as the UAE continues to solidify its position as a regional economic powerhouse, the emphasis on talent acquisition, retention, and Emiratisation will remain pivotal. With salaries outpacing inflation and an array of opportunities on offer, the UAE’s job market is poised for continued growth and prosperity.
