Only high-margin industries and companies experiencing strong performance are likely to offer bonuses and reward their employees before the year-end, recruiters have told The National.
A lot of industries remain cautious, especially as cost pressures have risen for employers as well, said Nicki Wilson, owner and managing director of Dubai-based consultancy Genie Recruitment.
“Government entities, private equity, data-driven industries and the property sector are leading the way for planned salary increases and bonuses. Of these, private equity tends to be the most generous,” said Zahra Clark, head of the Middle East and North Africa region at Tiger Recruitment.
The UAE is facing a surplus of skilled professionals in many roles, particularly at middle and senior management levels, according to recruitment analysts. The country’s attractive lifestyle and tax-free salaries continue to draw skilled labour from around the world.
The Emirates' population is booming and job seekers in many professions outstrip by far the number of available roles, HR professionals said. People are coming in and taking jobs for very low salaries just to get their foot in the door, they added.
Employers are placing greater emphasis on UAE market experience and cultural fit, as well as soft skills, given the abundance of technically qualified candidates.
“The UAE is pushing hard to be the global talent hub with golden visas and green visas, but the salary reality on the ground is uneven. It depends on scale, survival and credibility,” said Nevin Lewis, chief executive of Black & Grey HR, a Dubai-based executive search and recruitment firm specialising in hiring C-suite and mid to senior level talent across the Gulf region.
“Big corporates and multinational companies can afford to benchmark globally. They pay to protect critical roles in tech, renewables, aviation and health care. That’s why an artificial intelligence lead or renewable project director can still walk away with premium offers.
SMEs versus MNCs
“SMEs don’t play the same game. They run lean, margins are tight, and raises are modest. What they offer instead is speed with faster promotions, broader exposure and closer access to decision-makers. For ambitious talent, that’s valuable,” he added.
Mr Lewis said new entrants and start-ups hire aggressively and promise equity or “future upside”. Some deliver, he said, adding that most start-ups do not survive beyond three years, and employees are left with “broken promises”.
Specialist overseas candidates can negotiate harder or simply walk away depending on their risk appetite.
“The UAE is running fast and the best employers will retain their best people. Most will quietly replace them with younger, cheaper expat talent,” he said.
Are salaries keeping pace with inflation?
Salary increases in the UAE are not moving at the same pace as the rising cost of living, particularly when it comes to housing and school fees, according to Ms Clark.
The International Monetary Fund projected the UAE’s inflation rate at 1.6 per cent this year and about 2 per cent over the medium term. However, the fund noted that housing costs are expected to remain the primary source of price pressures in the UAE, which it said raises concerns about affordability.
The UAE Central Bank said in its quarterly report that inflation in the Emirates has eased, thanks to lower energy and food costs. Prices increased 0.6 per cent in the second quarter, with the regulator lowering its 2025 inflation forecast to 1.5 per cent on moderating transport costs, as well as food and non-energy commodity prices. Inflation is expected to edge up slightly to 1.8 per cent in 2026, the banking regulator said in its Quarterly Economic Review report last month.
Watch: Why expat packages are not what they used to be
“Housing, school fees and everyday living costs have all gone up, but salaries have either remained flat or in some cases come down,” said Ms Wilson.
“This creates a real gap between lifestyle costs and take-home pay. It’s becoming one of the biggest challenges for professionals, especially families who are trying to make the UAE work for them.”
“Very generous” salary expectations
Ms Wilson from Genie Recruitment said a lot of people arrive in the UAE expecting high salaries and “very generous” packages, only to realise quite quickly that the market is competitive and not what it was a decade ago.
“Salaries are fair, but they are not automatically higher just because someone is an expat. After a few months of searching, many candidates become more realistic about what’s achievable,” she noted.
“Those who succeed are usually the ones who are flexible and who continue to upskill in areas like AI, digital transformation, sales and even personal branding. Employers in this region are looking for people who add measurable value, so candidates who can demonstrate adaptability and a modern skill set are the ones who can negotiate stronger packages.”
Many candidates are negotiating for flexibility and work-life balance over pure financial gain, according to Ms Clark.
But some are still pushing for higher pay. “We’ve also seen candidates try to negotiate sign-on bonuses if they’re leaving before their current employer’s year-end payout, but most companies here are reluctant to agree to that,” she said.
Are visa reforms leading to higher pay?
Salaries have not jumped simply because of visa changes, Ms Wilson said.
The new visa options have made the UAE much more attractive for global professionals, and companies are aware that they are competing on a worldwide stage, she said.
“Employers are becoming smarter about structuring offers that make relocation or long-term settlement in the UAE feasible. This usually comes in the form of flexibility, remote working and allowances rather than higher salaries,” she added.
Companies are becoming more competitive to secure top talent. That often means higher salaries for highly qualified candidates, depending on availability in the market, according to Ms Clark.
Non-cash perks more prevalent
Schooling allowances are being reintroduced, particularly in family offices, after being scaled back for some time, Ms Clark said.
Other common benefits include annual flights home, enhanced medical insurance, profit-sharing schemes, annual bonuses tied to tenure, and practical perks like free parking in commercial districts, she added.
“In some cases, schooling allowances are back on the table. These aren’t generically across the board though, but they can be negotiated for the right candidate. It is important to be clear early on in the hiring process about what your priorities are. If schooling or flexibility is critical, then it should be raised upfront,” according to Ms Wilson.
Roles commanding premium salaries
Technology and renewable energy jobs are driving the sharpest salary increases at the moment, Ms Clark said.
Within business support, there is significant demand for executive assistant roles, “which have become increasingly complex and high-pressure”, she added.
Ms Wilson said that technology and AI talent will continue to be in demand, but in general most sectors are not reporting any salary jumps.
