UAE Jobs: Salaries Projected to Outpace Cost of Living in 2024

UAE Jobs: Salaries Projected to Outpace Cost of Living in 2024

Businesses in the region are attempting to hire skilled workers from the United Arab Emirates.

Due to the rising demand for talent and the expansion of the national economy, salaries in the UAE are expected to rise this year more quickly than the rate of inflation.

The average wage in the United Arab Emirates is predicted to rise by 4% this year, Mercer, a global human capital consultant, compared to a 2.3% increase in inflation.

According to the Mercer Middle East Total Remuneration Survey for 2024, workers in consumer goods companies will experience an average pay increase of 4.1 percent this year, while employees in the energy sector will see a slightly higher increase of 4.3 percent. In the meantime, high-tech and life sciences firms intend to raise salaries by about 4%.

In the UAE, average salaries rose by 4.1% in 2023 across all industries. Although the job market in the United Arab Emirates is stable, growing, and exciting, one of the major problems, according to Andrew El Zein, principal for Careers in the Mena region, is the expense of living, mostly since rents have increased over the last few years.

“Rents have increased drastically, and Rera (Real Estate Regulatory Authority) recently recalibrated its rent calculator. That has shown an increase in the rent that landlords can charge. So that is definitely going to be a concern and going to feel on the employees’ pocket,”

he said.

Rents in the UAE have been consistently on the rise after the pandemic due to the increased flow of foreign workers into the country.

Regional firms poaching UAE talent

El Zein highlighted the UAE's potential amidst rising costs, emphasizing abundant opportunities in high-demand job sectors and sought-after skills. He noted the attractiveness of the UAE job market for both local and international professionals, with companies facing increased competition to retain talent. To address this, efforts focus on implementing various retention plans and incentives.

Emphasizing Emiratisation, he underscored competition among private sector organizations to attract Emirati talent, particularly highlighting the potential of the untapped Emirati women workforce segment.

16% of UAE firms plan to hire

According to the Mercer Middle East Total Remuneration Survey for 2024, 16.3% of UAE businesses want to hire more people this year, while 7.8% want to reduce staff. In the Emirates, around 75.9% of businesses have no plans to grow or shrink their employment.

According to the report, which focused on the Middle East, salaries will surpass inflation throughout the Gulf Cooperation Council (GCC) this year, but the rest of the area would find it difficult to keep up with the oil-rich Gulf states.

Furthermore, 3.8% of UAE-based businesses anticipate higher turnover rates in 2024, while 11.4% anticipate lower rates.

News Source: Khaleej Times

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