UAE Salaries Projected to Rise Across All Industries in 2025, Survey Shows

In a positive outlook for workers in the UAE, UAE salaries 2025 jobs are expected to increase by 4% across all industries, according to Mercer’s annual Total Remuneration Survey. The survey, which gathered insights from over 700 companies across various sectors, indicates that the UAE job market is not only resilient but also optimistic about the future, with employers planning to invest in their workforce.

Salary Hikes and Growing Demand for Talent

The survey highlights that 28.2% of UAE businesses intend to expand their headcount in 2025, signalling a strong demand for skilled professionals across multiple sectors. The UAE salaries 2025 jobs outlook is particularly promising in industries like consumer goods, life sciences, and technology, where projected salary increases range from 4.1% to 4.5%. Other sectors, such as energy and financial services, are set to see salary hikes in line with the overall market average of 4%.

Andrew El Zein, Mercer’s UAE Career Products Leader, expressed optimism about the findings, stating:
“It is very encouraging to see a large segment of UAE employers planning salary increases in 2025. This reflects a resilient and optimistic economic outlook for the country. However, companies should also review housing allowances in light of the rising cost of living to remain competitive when attracting and retaining top talent.”

A Uniform Approach to Salary Increases

The survey also reveals that employers across all industries are adopting a similar approach to salary increases, offering equal percentage hikes for employees at all levels. This universal approach underlines the confidence employers have in the future growth of the UAE economy and their desire to reward staff accordingly.

The Impact of AI and Digital Transformation

As UAE salaries 2025 jobs continue to rise, the UAE’s job market is also being reshaped by rapid technological advancements. Generative AI and automation are transforming the skills required by the workforce, with the UAE boasting the highest rate of AI adoption in the Middle East. According to Mercer’s Global Talent Trends, 74% of workers in the UAE use AI tools at least once a week, creating new demands on both employers and employees.

Ted Raffoul, Mercer’s Middle East Career Products Leader, commented:
“Generative AI and automation are rapidly transforming the job landscape, shifting the skills our workforce needs and placing additional pressure on salaries. Employers must equip their workforce with digital skills to thrive in this new environment.”

Preparing for 2025: What Employers Should Do

To remain competitive and prepare for UAE salaries 2025 jobs, Mercer recommends that employers focus on the following strategies:

1. Assess Skill Inventories: Identify current skills within the organisation and pinpoint gaps that need to be addressed through training or recruitment.
2. Understand Hiring and Retention Drivers: Focus on the factors that attract and retain talent, ensuring that compensation packages remain competitive.
3. Develop a Differentiated Employee Value Proposition (EVP): Tailor your EVP to meet the evolving needs and expectations of today’s workforce, taking into account the increasing importance of flexibility, digital skills, and career development.

A Positive Future for UAE’s Workforce

As we approach 2025, the outlook for UAE salaries 2025 jobs remains strong. The growing demand for talent, combined with increasing salaries and widespread adoption of new technologies, indicates a thriving economy. However, businesses must also recognise the challenges posed by the rising cost of living and the need for continuous investment in employee development to remain attractive to top talent.

With the job market set to become more competitive, employers will need to focus not only on offering competitive salaries but also on creating a supportive workplace culture that embraces change, innovation, and continuous learning.