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As the UAE prepares for economic expansion in 2024 and 2025, new data reveals a deepening gap in salary trends across industries.
According to recent analysis, sectors like Finance, Banking, and Fintech continue to outpace others, offering salaries that average 24 per cent above the market median. Close behind is the Energy and Utilities sector, with wages 20 per cent above median levels.
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Vijay Gandhi, regional director of Korn Ferry Digital, EMEA, said the Technology and Innovation sector, particularly fields such as artificial intelligence, data science, and cybersecurity, also commands premium pay. “Transport, while less pronounced, still sits 4 per cent above the median,” he added.
On the flip side, several industries remain significantly underpaid compared to the national average. Workers in tourism and hospitality earn 19 per cent below the median, followed by construction (13 per cent below), trade, retail and consumer services (11 per cent), life sciences (8 per cent), and real estate (5 per cent).
Wage growth remains modest amid inflation
Despite the rising cost of living, salary increases across the UAE have remained relatively modest. Annual raises have averaged just 4 to 5 per cent in recent years. This stagnation is echoed globally. A Korn Ferry survey noted that many companies now plan no salary increases for most employees, focusing instead on rewarding only critical and high-impact roles.
“In today’s climate, reward programs must work harder,” the report notes. “They must be agile, inclusive, and aligned with both business goals and employee values.”
Facing pressure to retain talent without overextending compensation budgets, UAE companies are expanding their focus beyond traditional pay. Many employers have begun to adopt more holistic “Total Rewards” strategies.
These include financial wellness benefits such as student loan repayment assistance and flexible pension contributions. Wellness is also a rising priority, with 27 per cent of companies offering tailored mental, physical, and emotional health benefits.
Work-life balance is another key area of investment. Employers are expanding caregiving support and providing lifestyle perks to help staff manage personal and family responsibilities. Continuous learning and career growth are increasingly being used as strategic tools to attract and retain talent.
“As employees re-evaluate both personal and professional goals, companies must reassess their reward strategies,” Gandhi added.
Economic growth supports optimism
The positive salary trends in certain sectors are underpinned by a broader economic upswing. The UAE’s economy is projected to grow 4 per cent in 2024 and 6 per cent in 2025, according to the Arab Monetary Fund and the Central Bank of the UAE. This optimism is supported by strong government initiatives to boost local employment.
A $1.7bn budget has been allocated to support Emiratisation, with the goal of integrating more UAE nationals into the private sector. As of 2023, approximately 42,000 Emiratis had joined private companies, bringing the total to 92,000. The aim is to add another 36,000 Emiratis to the workforce by the end of 2024.
Still, not all experts are entirely optimistic. Some analysts have warned that the UAE’s rapidly growing population may suppress average salaries in the long run. Despite the economic gains, a recent Cooper Fitch survey forecasts no average salary increase for new hires in 2025, due to population pressures.
In the face of inflation and growing expectations around flexibility, UAE companies are rethinking their compensation strategies heading into 2025. According to the Mercer 2024 Total Remuneration Survey, salaries are projected to rise by an average of 4 per cent, driven by increased competition for talent and rising living costs.
“Companies need to strike a balance between employee satisfaction and financial sustainability,” said a spokesperson for Guildhall, a leading recruitment agency in Dubai. “It’s no longer just about pay; it’s about purpose, progression, and perks.”
Real estate and aviation drive talent demand
The real estate sector has been a major growth engine for employment. According to LinkedIn data, the number of property professionals in the UAE rose by 42 per cent in Q1 2024 compared to Q4 2023, while job postings in the sector surged 94 per cent during the same period.
Analysts at Bloomberg note that while developer activity is booming, unit handovers are not expected to peak until 2026–27. This suggests sustained demand for skilled professionals in the real estate space over the next few years.
Meanwhile, the aviation sector is also seeing record-breaking recruitment. According to Emirates’ 2023–24 Annual Report, the airline’s workforce grew by 10 per cent to 112,406 employees—its largest size ever. Etihad also onboarded over 2,300 new employees in 2023. Passenger traffic, a key employment driver, rose by 13 per cent, reaching nearly 98 million in the first eight months of 2024.
Tech jobs still outpacing supply
The UAE’s tech sector remains a key source of job creation. The country ranked first in the Middle East and 16th globally in Huawei’s Global Digitalisation Index (GDI) 2024. While AI-related hiring has not scaled as quickly as some predicted, 43 per cent of UAE-based respondents to a recent SAP-YouGov survey said that a lack of available AI talent remains a major challenge.
This mismatch between demand and supply continues to drive up compensation packages in AI, data science, and cybersecurity, areas that experts believe will define the future of employment in the region.
As the geopolitical climate continues to evolve across the Middle East, security concerns remain a critical factor in the UAE’s employment outlook. Experts believe the emirates will use its diplomatic leverage to help maintain regional peace and economic stability, both of which are essential for sustaining talent attraction.
