Amidst a backdrop of economic growth and burgeoning opportunities, the United Arab Emirates (UAE) job market continues to flourish, with salaries projected to outpace the cost of living this year.
According to the latest findings from the Mercer Middle East Total Remuneration Survey for 2024, the average salary in the UAE is anticipated to surge by 4 percent, surpassing the 2.3 percent rise in inflation.
Massive increase in salaries
Notably, various sectors are poised for substantial salary hikes. Employees in energy companies can expect a 4.3 percent increase, while those in consumer goods firms are set to receive a 4.1 percent hike. Furthermore, life sciences and high-tech sectors are also primed for a four percent salary increment.
Andrew El Zein, principal for Careers in the MENA region, highlighted the stability and excitement in the UAE job market but cautioned about the escalating cost of living, primarily driven by surging rents. Despite this challenge, the UAE remains an attractive destination for talent, with ample opportunities in high-demand fields.
However, the UAE's robust job market has drawn attention from companies across the region, intensifying competition for skilled professionals. Foreign firms are actively seeking to recruit talent from the UAE, adding to the already fierce competition within the country.
To retain talent in this competitive landscape, companies are exploring various long-term and short-term incentive schemes. Additionally, there's a growing focus on Emiratisation, with private sector organizations vying to attract Emirati talent, particularly women.
Firms to launch mass hiring drive
Excitingly, the Mercer survey also indicates a positive outlook for job creation, with 16.3 percent of UAE firms planning to increase their headcounts in the coming year. While 7.8 percent anticipate reducing their workforce, the majority (75.9 percent) remain stable in their hiring plans.
The buoyancy of the UAE job market contrasts with the broader Middle East region, where challenges persist. However, the GCC nations are expected to lead the way, with salaries outpacing inflation, presenting a promising scenario for professionals in the region.
In addition to salary increments and hiring intentions, some UAE firms foresee a change in turnover rates, with 3.8 percent expecting an increase and 11.4 percent anticipating a decrease.
