UAE Employers: Salary Increases Ahead in 2024

UAE employers salary

In the UAE, a promising outlook awaits employees as nearly 8 out of 10 employers intend to boost their salaries in 2024, signaling robust growth in the job market and a positive economic landscape, as revealed by a recent survey conducted by Hays Middle East. This buoyancy is reflected in the intentions of around 69 percent of employers to expand their workforce this year, with 58 percent expressing optimism about the UAE's economic prospects.

Interestingly, despite the prevalence of remote work arrangements globally, nearly half of UAE companies, amounting to 49 percent, do not offer remote or hybrid work options to their employees, according to the Hays GCC Salary Guide 2024.

In recent years, the UAE has witnessed significant job creation, driven by rapid economic expansion following the pandemic. This growth has been supplemented by an influx of foreign workers, meeting the demand for talent from employers seeking to expand their operations.

Oliver Kowalski, managing director of Hays Middle East, highlighted the robust demand for skilled personnel, with 67 percent of GCC employers aiming to increase their workforce in 2024. He emphasized that employees expect adequate remuneration, with 75 percent anticipating salary increases this year. Notably, a dynamic labor market is evident, with 31 percent of skilled workers actively considering changing employers in the coming year.

The survey, which garnered responses from over 2,300 professionals and employers across the UAE and Saudi Arabia, underscores the anticipation of another dynamic year in 2024. Kowalski emphasized the ongoing transformation of the economy and the government's pursuit of long-term goals.

Regarding salary trends, the survey revealed that 52 percent of UAE employees experienced salary increases in 2023, with most seeing increments of up to 5 percent. This year, an even larger proportion, 72 percent, anticipate salary hikes. Intriguingly, 3 out of 10 employees are contemplating changing companies in pursuit of better opportunities.

The Hays GCC Salary Guide 2024 also shed light on the employment of UAE nationals, with 40 percent of employers currently employing Emiratis and a similar percentage planning to hire more in 2024. Demand for local citizens remains high, with employers often prioritizing skilled and experienced national talent when filling vacancies.

In terms of technological integration, employers in the Gulf region exhibit mixed sentiments towards artificial intelligence (AI), with only 41 percent endorsing its use in the workplace. While most believe that AI has not significantly impacted employment, 37 percent foresee it eliminating more job opportunities than it creates. Given these shifts, training becomes imperative for employees to adapt to evolving job market dynamics and technological advancements. However, the survey found that only 14 percent of employers offer upskilling or reskilling AI training programs to their workforce.

In summary, the outlook for employees in the UAE is optimistic, with salary increases on the horizon and opportunities for growth. However, navigating the evolving job market and technological landscape will require proactive measures such as upskilling and adapting to new workplace paradigms.