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Salaries in the UAE are expected to rise by 4% across all industries in 2025, with 28.2% of employers planning to increase headcount, according to a press release, citing Mercer’s Total Remuneration Survey, based on data from 700 UAE companies.
Breakdown by industry: The consumer goods sector is projected to see the highest salary increase at 4.5%, followed by life sciences at 4.2%, technology at 4.1%, and energy and financial services at 4%. Employers plan to apply the same salary increases to employees across all levels, according to the survey.
Housing allowances may need to be reviewed too: “HR professionals should also review their housing allowances, in light of increasing housing costs in the country to remain competitive,” Mercer’s UAE Career Products Leader Andrew El Zein said. Mercer previously ranked Dubai as the Middle East’s most expensive city for international employees, with the emirate’s real estate boom expected to continue until 2027.
Generative AI and automation are reshaping the job market, creating demand for advanced skill sets and increasing salary pressures, according to Ted Raffoul, Mercer’s Middle East Career Products Leader.
REMEMBER- The UAE led the GCC in terms of growth of new jobs in 3Q 2024, with an 8% q-o-q increase in vacancies. The hiring patterns were driven by sizable investments in technology, media, telecommunications, and space commercialization.
OTHER BUSINESS NEWS-
Some 98% of UAE entrepreneurs remain confident their business will grow despite geopolitical tensions and macroeconomic headwinds, HSBC said in a press release, citing its latest report (pdf). The survey covered 1.8k entrepreneurs with at least USD 2 mn in investible assets across 10 markets, including the UAE, US, UK, France, China, India, and Switzerland.
A whopping 95% of the 155 UAE entrepreneurs surveyed expect their personal wealth to grow in the coming years, with 54% especially optimistic about significant wealth growth, driven by confidence in technological advancements, future business, and their own capabilities.
The UAE is the ninth most popular destination for entrepreneurs considering relocation within the next year, the survey found, with 5% of respondents mulling a move there. In terms of wealth relocation, 69% of respondents are planning to move their wealth in the next 12 months, with the UAE ranked 10th among the top destinations. For UAE entrepreneurs considering relocating their assets, Saudi Arabia was the top choice, followed by the UK and the US.
