The UAE job market is witnessing a significant gap between salary expectations and employer offers, with job seekers demanding up to 30% more than companies are willing to pay, according to the latest Naukrigulf Hiring Outlook Report. This disparity is most pronounced at the senior executive level, where expectations far exceed market benchmarks.
Rising Cost of Living Fuels Higher Salary Expectations
The surge in salary demands is largely driven by the rising cost of living, with increasing expenses in housing, education, transportation, and healthcare. As the UAE’s population grows—rising from 9.79 million in 2021 to 11.35 million in 2025—the demand for goods and services has intensified, further escalating living costs.
Employer Challenges: Larger Talent Pool, But Moderated Salary Growth
Despite job seekers’ expectations, employers are not matching these demands due to a growing influx of global job seekers. The expanding talent pool has given companies more hiring options, making it harder for professionals to secure significant salary increases.
High-Demand Sectors Offering Competitive Salaries
Certain specialized industries, particularly in technology and digital transformation, continue to offer premium salaries.
- IT, Cybersecurity, and AI Professionals: Earn 25-50% above market averages.
- Sales & Marketing in SaaS and Fintech: Secure 20-30% higher salaries compared to traditional industries.
Talent Shortages in Critical Sectors
While some industries offer competitive pay, many companies struggle to fill key positions due to a shortage of skilled professionals.
- Engineering, technology, and operations roles are experiencing a severe talent deficit, leading to hiring delays and extended recruitment cycles.
Balancing Expectations & Market Realities
The salary gap in the UAE job market underscores a complex hiring landscape, where rising costs of living, global competition, and talent shortages are reshaping recruitment dynamics. As employers navigate these challenges, professionals seeking salary hikes must align their expectations with market trends and industry-specific opportunities.
News Source: Khaleej Times
