UAE Jobs: Study Reveals Impact of Rising Population on Salary Decline

The influx of expatriate professionals into the UAE is contributing to a decline in employees' salaries, creating a surplus of talent and making it an employer’s market, according to a new report by recruitment consultancy Robert Half.

The 2025 Salary Guide found that starting salaries for professional services roles fell by 0.7% year-on-year, with more than half of employees planning to seek new employment due to the rising cost of living.

Gareth El Mettouri, Director for the Middle East at Robert Half, explained that sectors such as finance, accounting, and human resources have seen the biggest salary cuts due to an oversupply of talent. He added that some companies receive over 2,000 applicants for a single advertised position. However, roles in legal and technology see fewer applicants.

Salaries in finance and accounting have dropped by an average of 2.1%, with some corporate accounting positions seeing reductions of up to 23%. While there is still demand for accounting professionals with financial planning and tax expertise, the influx of expats moving to the UAE without secured jobs is driving down their market value.

The UAE’s population has surged to a record high, fueled by the growing number of investors and professionals, particularly in Dubai and Abu Dhabi. As of November 4, 2024, Dubai’s population reached 3.798 million, while Abu Dhabi’s population grew by 83% from 2011 to 2023.

In contrast, certain roles are seeing salary increases. Robert Half noted a 1.6% rise in starting salaries for in-house legal positions, driven by high demand for mid-level legal counsel from global investment companies and businesses planning initial public offerings.

News Source: Khaleej Times