Dubai’s salaries fall? Talent surge in HR, finance, accounting professionals

• In an interview with journalist Brandy Scott of Dubai Eye 103.8, the founder and CEO of Cooper Fitch, Trefor Murphy, discussed the salary trends and expectations in the UAE and Saudi Arabia.
• The findings are based on comprehensive data collected from over 1,000 organizations and 400,000 employees.
• What’s ahead for UAE salary trends in 2025?

First, let us understand…

UAE’s economic performance in 2024

• UAE economy growth: 3.4% increase in GDP in Q1 2024, reaching AED 430 billion ($117 billion).
• Foreign direct investment surge: FDI inflows rose to $30.7 billion in 2023, up from $22.7 billion in 2022.
• Attraction of talent: UAE’s economy and lifestyle continue to draw a large talent pool.

Population growth

• Dubai: 3.798 million as of Nov 4, 2024.
• Abu Dhabi: 3.789 million in 2023, growing 83% since 2011.
• UAE Overall: 11.135 million as of Nov 4, 2024, up from 10.642 million in 2023 and 10.242 million in 2022.

Challenge…With a population surpassing 11 million and a growing talent influx, companies are reassessing their salary strategies.

Cooper Fitch Salary Guide 2024

In Cooper Fitch’s 2024 Salary Guide, the UAE job market was buzzing with optimism as salaries were projected to grow by 4.5%.

This increase was driven by strong performances in non-oil sectors and an expanded OPEC+ oil production quota, signalling a favourable economic climate.

Gulf Employment Index – Q3 2024 Highlights

Regional Job Growth

• UAE: 8% increase in job activity.
• Saudi Arabia: 7% increase.
• Qatar: 3% increase.
• Kuwait, Bahrain, Oman: Small drop (~1%) due to slower market activity.

Annual Perspective

• Job growth for 2024 is projected at 4–4.5% overall, depending on Q4 performance.

Key Sectors Driving Growth

Consulting:

• Double-digit growth driven by mega and giga projects in Saudi Arabia, and robust activity in Abu Dhabi and Dubai.
• High demand for consultants in Technology, Media, Telco (TMT), Retail, and Infrastructure.
• International talent is being recruited for local projects.

Legal and Finance:

• Legal hiring is up 9%.
• Finance sees double-digit growth, especially in Fintech, hospitality, and real estate, reflecting sovereign wealth fund investments.

Sales & Marketing (Luxury & Retail):

• Decline due to tough quarters in retail, especially luxury.
• Rebound is expected next year as businesses reposition through consulting support.

Wages and Q4 Outlook

• Continued moderate growth of 2–3% expected in Q4.
• UAE job creation is at an all-time high; Saudi Arabia continues to be strong but with a slight deceleration.

Important to note: Reduced offers for new hires 

• In 2024, nearly 30% of employers scaled back their offers to new recruits.
• It was a clear sign of the growing trend toward cost-conscious hiring amid financial pressures.

Now, UAE salary trends for 2025 – Cooper Fitch

Expect minimal pay increases 

• Despite the UAE’s robust economy, the 2025 salary outlook is conservative…The average salary increase is projected to be 0%, a first in 13 years.
• With inflation soaring above 3%, this this stagnant remuneration may come as an unseen pay cut, despite no reduction in their nominal salaries.

The bonus factor, some good news for you

• While salary increases are expected to be meagre, bonus payouts may reach record highs in 2025 for certain sectors.
• Companies are offering these bonuses to reward strong performance without committing to higher fixed costs, like gratuity.
• Why? Because a bonus is a one-time payment, while a salary increase lasts forever. This is how businesses plan to manage costs while still keeping their best employees.

Wait…Sectors that will see a pay boost in the UAE in 2025

• Banking & Financial Services: Exceptional performance in 2024 positions the sector for potential pay hikes exceeding 10%.
• Aviation, Defense, and Aerospace: Expected to match or exceed the 10% mark.
• Construction, Real Estate, and Architecture: Likely to see increases between 5% and 10%.
• Technology: Many organizations are projected to offer raises in the 0–5% range.

Trends in Saudi Arabia 

• In contrast to the UAE, Cooper Fitch predicts that salaries in Saudi Arabia will rise by an average of 2%.
• A modest increase that aligns with inflation but offers little relief to employees. Why? Housing costs in Saudi Arabia are also on the rise, intensifying the financial strain on employees who are already grappling with increasing expenses.
• However, some experts believe a more realistic salary increase of 4–5% could emerge as the competition for talent in the Kingdom heats up.

Robert Half’s view for 2025

Talent Influx

The UAE has seen an increase in finance, accounting, and HR professionals.

Gareth El Mettouri, Director for the Middle East at Robert Half, told The National that it’s becoming increasingly common for companies to receive **over 2,000 applications** for a single job posting.

Salary Impact

• Starting salaries in finance and accounting dropped by 2.1%, with some corporate accounting roles seeing up to 23% reduction.
• Despite this, accounting skills remain in demand…especially in financial planning and tax experience!
• The availability of expats without prior roles has contributed to lower market value.

Legal Sector

• Starting salaries for in-house legal roles rose by 1.6%, with mid-level legal counsel salaries increasing by 15%.
• Growing demand is driven by global investment interest and IPO preparations for privately owned UAE businesses.

Why are businesses opting for this approach?

Talent surge

• With many expats arriving without secured jobs, businesses now have a vast pool of candidates to choose from.
• This gives them greater control in the hiring process.

Salary expectations in the UAE

• Many MNCs believe that UAE salaries are among the highest globally, limiting the need for increases despite population growth and job competition.
• They are reassessing pay scales, often finding them above global averages.

Why do you want to move to UAE? Would you prefer Dubai to Saudi Arabia?