A new report released on Wednesday suggests that salaries in the UAE are projected to rise by 4.5% in 2024, primarily driven by the robust performance of non-oil sectors, especially real estate. According to the “Salary Guide UAE 2024” report by Cooper Fitch, 53% of companies anticipate increasing employee salaries next year. Among them, 39% plan to raise wages by up to 5%, nearly 10% plan increases between 6 and 9%, and 5% are preparing for raises of 10% or more.
Surprisingly, 21% of firms expect to decrease salaries in 2024, despite increased demand for top talent. Over a quarter have no plans to revise employee wages in the coming year. The UAE’s economic growth is expected to moderate to around 3% compared to the previous year’s 7.9%. In non-oil sectors, real estate, travel, tourism, and aviation are poised to lead the country’s economic growth.
A survey by Cooper Fitch in 2023 found that 81% of firms either increased or made no changes to employee salaries. Over half (54%) raised salaries in 2023, indicating sustained demand for talent in the UAE. Approximately 8% of firms increased wages by more than 10%, emphasizing the importance of talent retention in specific sectors.
Regarding bonuses, the survey revealed that 71% of companies plan to issue annual bonuses based on their financial performance in 2023, with 35% intending to pay one month’s basic salary. Sectors like accounting, chemicals, consumer goods, and hospital and healthcare may see bonuses equivalent to six months’ basic salary. However, financial services, consulting, and IT industries are among those not planning to pay bonuses.
Jack Khabbaz, managing partner and CEO of public sector advisory at Cooper Fitch, highlighted that while salaries remain crucial for talent retention, factors beyond fixed remuneration, such as annual bonuses and the ability to work remotely, are increasingly influential in the UAE’s job market.
