{"id":200416,"date":"2025-11-26T02:19:18","date_gmt":"2025-11-26T02:19:18","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/200416\/"},"modified":"2025-11-26T02:19:18","modified_gmt":"2025-11-26T02:19:18","slug":"era-of-aggressive-salary-growth-has-cooled-uae-wages-set-to-increase-by-1-6-in-2026","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/200416\/","title":{"rendered":"‘Era of aggressive salary growth has cooled’: UAE wages set to increase by 1.6% in 2026"},"content":{"rendered":"

Salaries in the UAE<\/a> are expected to rise by 1.6 per cent on average in 2026, as companies move towards focused increases amid strong population growth<\/a>, according to a report by recruitment consultancy Cooper Fitch.<\/p>\n

Most planned salary increases<\/a> sit in the 0 per cent to 5 per cent band, with only a small share of companies budgeting 6 per cent to 9 per cent or double-digit raises for \u201chard-to-replace roles\u201d in areas such as technology, transformation and specialised finance, the UAE Salary Guide 2026 report said. <\/p>\n

The study polled business leaders across 800 organisations in the UAE.<\/p>\n

There was an average salary increase of 2.6 per cent in the Emirates this year, figures compiled from employers show. Most organisations remained conservative, with 38 per cent approving modest increases of zero to 5 per cent to secure specialist or business-critical talent<\/a> in \u201ca competitive market\u201d.<\/p>\n

\u201cNew joiners that don’t have UAE or Gulf experience are likely to come in on leaner packages,\u201d said Trefor Murphy, founder and chief executive of Cooper Fitch.<\/p>\n

\u201cBut individual contributors stand out in 2026, with 14.3 per cent expected to receive mid-range salary increases of 6 per cent to 9 per cent, almost triple the rate seen in leadership or management levels, pointing to rising competition for specialised operational talent. They missed out on salary increases in the last couple of years.\u201d<\/p>\n

The UAE\u2019s population is booming, with both Abu Dhabi and Dubai passing the four-million mark this year. <\/p>\n

The Emirates is also facing a surplus of skilled professionals<\/a> in many roles, particularly at middle and senior management levels, according to recruitment experts. The country\u2019s attractive lifestyle and tax-free salaries continue to draw skilled professionals from around the world.<\/p>\n

Eighty-four per cent of employers polled expect to either increase or maintain salary levels in 2026. However, the \u201cera of aggressive salary growth\u201d has cooled, Cooper Fitch reported. As population growth, tightening margins and increased labour market mobility reshape hiring power, organisations are shifting towards focused increases rather than across-the-board adjustment, the report said.<\/p>\n

A majority of organisations (63 per cent) believe the UAE has sufficient talent to meet their hiring needs in 2026, while 19 per cent cite continued shortages in securing the skills required, the report revealed.<\/p>\n

Positions in demand<\/b><\/p>\n

\u201cGeneral and mid-level roles remain well-supplied, supported by ongoing population inflows. Specialist and leadership positions are becoming increasingly competitive, particularly where employers require sector-specific expertise or transformation capabilities,\u201d Cooper Fitch said. <\/p>\n

\u201cRoles tied to business transformation, digitisation and strategy are harder to fill, while most operational and customer-facing positions face fewer constraints. Supply is strong at the middle of the pyramid. Still, pressure is building at the top.\u201d<\/p>\n

Nearly half of employers (48 per cent) expect to increase staffing next year as companies respond to economic activity. About a third (29 per cent) anticipate headcount reduction, the report said.<\/p>\n

New joiners that don’t have UAE or Gulf experience are likely to come in on leaner packages<\/p>\n

Trefor Murphy,
founder and chief executive, Cooper Fitch<\/p>\n

Aviation, defence and aerospace have some of the strongest expansion signs, with nearly half of companies polled reporting expectations of double-digit growth in headcount next year. Public sector organisations also anticipate significant increases, the consultancy found. <\/p>\n

A significant number of real estate and construction companies expect to carry out substantial hiring, while others anticipate sharp reductions, reflecting the sector\u2019s exposure to shifting project cycles, according to Cooper Fitch’s findings. <\/p>\n

The sector continues to benefit from sustained development activity across residential, commercial and mixed-use projects, supported by strong investor demand and a growing population. <\/p>\n

Multiyear construction pipelines, major infrastructure programmes and continuing private-sector investment have driven demand for talent linked to project delivery, development management, advisory services and real estate operations, the study said.<\/p>\n

Changing visa rules<\/p>\n

For decades the UAE has granted two and three year visas to foreign workers, tied to their current employer. Now that’s changing.<\/p>\n

Last year, the UAE cabinet also approved providing 10-year visas to foreigners with investments in the UAE of at least Dh10 million, if non-real estate assets account for at least 60 per cent of the total. Investors can bring their spouses and children into the country.<\/p>\n

It also approved five-year residency to owners of UAE real estate worth at least 5 million dirhams.<\/p>\n

The government also said that leading academics, medical doctors, scientists, engineers and star students would be eligible for similar long-term visas, without the need for financial investments in the country.<\/p>\n

The first batch – 20\u00a0finalists for the Mohammed bin Rashid Medal for Scientific Distinction<\/a>.- were awarded in January and more are expected to follow.<\/p>\n

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