Increased demand for talents
BBN Bureau
Dubai: Salaries in the UAE are projected to rise faster than the inflation rate hike this year, driven by increased demand for talents and overall economic growth.
According to the Mercer Middle East Total Remuneration Survey for 2024, the average salary in the UAE is expected to increase by 4 per cent this year, compared to a 2.3 percent rise in inflation.
The survey revealed that employees in energy companies will see a slightly higher salary increase of 4.3 per cent, while staff in consumer goods firms will see an average hike of 4.1 per cent. Similarly, employees in life sciences and high-tech companies are expected to see a salary increase of around four per cent.
In 2023, average salaries across all industries in the UAE increased by 4.1 per cent.
Andrew El Zein, principal for Careers in the MENA region, noted that while there is stability, growth, and excitement in the UAE job market, the rising cost of living, particularly due to increased rents in recent years, remains a significant concern.
Despite these challenges, El Zein emphasized the attractiveness of the UAE job market, citing numerous opportunities and in-demand jobs with hot skills. He highlighted the competition among companies within the UAE and from other regional countries to attract and retain talents.
To retain talents, companies are exploring various long-term and short-term incentives and retention plans. Additionally, there is significant competition among private sector organizations to attract Emirati talents, particularly within the untapped Emirati women segment.
According to the Mercer survey, 16.3 percent of UAE firms plan to increase their headcounts, while 7.8 percent intend to reduce their workforce this year. The majority of companies, approximately 75.9 per cent, neither plan to add nor reduce their workforce.
The survey also indicated that the entire GCC region is expected to witness salaries outpacing inflation this year, while the wider region may struggle to keep pace with the oil-rich Gulf states. Additionally, 3.8 percent of UAE firms anticipate an increase in turnover rate for 2024, while 11.4 per cent expect a decrease.
