UAE Jobs: Salaries will rise ‘across all sectors’ in 2025, survey finds – News

Overall salaries in the UAE are expected to increase by 4 per cent across all sectors in 2025 and more than a quarter (28.2 per cent) of organizations plan to increase their headcount next year, indicating demand talent, according to a survey.

More than 700 UAE companies were surveyed by Mercer in its annual total compensation survey, across a wide range of sectors including energy, financial services, engineering, construction, real estate, manufacturing, retail and wholesale, services, life sciences and technology.

Companies in the consumer goods sector expect the largest wage increase, at 4.5 percent. The life sciences and technology sectors forecast increases of 4.2 percent and 4.1 percent respectively, while the energy and financial services sectors match the market with increases of 4 percent. Employers across industries also said they plan to offer all employees, regardless of level, the same pay increases.

“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, Head of Product career at Mercer in the United Arab Emirates.

Mercer’s survey also explored the impact of generative AI, automation and digital transformation on the demand for skilled talent. Currently, the UAE has the highest AI adoption rates in the Middle East, with 74% of people using AI once a week, and UAE CEOs expect this that AI will be a key driver of future growth, according to Mercer’s Global Talent Trends.

Ted Raffoul, Mercer Middle East Career Product Manager, added: “Generative AI and automation are rapidly transforming the employment landscape, changing the skills our workforce needs and exercising additional pressure on wages. Business leaders play an important role in developing a digital culture and a culture open to change, so that employees at all levels can be prepared for the future of work.

To respond to the adoption of new technologies, Mercer recommends that employers evaluate their current skills inventories to identify gaps and areas for development. They should also better understand hiring and retention factors to ensure they have the skills they will need for the future. Developing a differentiated employee value proposition (EVP) will also be crucial in this new reality.

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Somshankar Bandyopadhyay

Somshankar Bandyopadhyay is a senior editor with almost three decades of experience. Currently, he manages the economic section, ensuring that the economic and economic news of the day reaches its readers.