Salaries in UAE to increase across all industries in 2025

Survey says…

According to Mercer’s annual Total Remuneration Survey (TRS), salaries in the UAE are projected to increase by 4% in 2025 across all industries. The survey also reported that more than a quarter (28.2 percent) of organisations in the UAE are planning to increase their head counts – a move that showcases a demand for talent.

According to Khaleej Times, more than 700 companies in the UAE were surveyed. It included a range of industries, from energy to financial services, construction, real estate, technology, retail and wholesale services, and more.

Those who work in the consumer goods industry are set to receive the highest increase to their salaries at 4.5 per cent. The next industry forecasted to get the highest increase is the life sciences (4.2 per cent), and technology industries  (4.1 per cent), followed by the energy and financial services sector at a 4 per cent increase.

According to the survey, the employers stated that all employees, regardless of level, will receive the same salary increase.

*ILOE: How to renew your UAE unemployment scheme to avoid fines*

Mercer also turned its attention to AI (artificial intelligence) and digital transformation and how it affects the hiring culture here in the UAE.

According to statistics, the UAE is the highest adopter of new AI methodologies from the Middle East.

So how will this affect the working culture within the company (and within the country)? According to Ted Raffoul, Mercer’s Middle East Career Products Leader, ‘Generative AI and automation are rapidly transforming the job landscape, shifting the skills our workforce needs and placing additional pressure on salaries. Business leaders play an important role in nurturing digital literacy and cultures that are open to change so employees at all levels can be prepared for the future of work.’

Due to companies adopting new technologies, Mercer recommends pinpointing their current skill inventories to pinpoint gaps and trace areas for development. Mercer also advises employers to develop a differentiated Employee Value Proposition (EVP) as its crucial in this ‘new reality.’