Salaries across various industries in the United Arab Emirates (UAE) are projected to increase by 4% in 2025, according to findings from Mercer’s annual Total Remuneration Survey (TRS). The report indicates that the consumer goods industry is set to lead the surge with a projected 4.5% increase in base pay, while the life sciences and technology sectors anticipate salary hikes of 4.2% and 4.1%, respectively. Other sectors, such as energy and financial services, align with the market average of 4%.
The survey encompassed responses from over 700 companies in the UAE across industries including energy, engineering, construction, real estate, and more. Additionally, 28.2% of organizations expressed plans to expand their workforce in 2025, signaling a strong demand for skilled talent.
Andrew El Zein, Mercer’s UAE Career Products Leader, highlighted the positive outlook, noting that the planned salary increments reflect a resilient economic environment. He advised HR leaders to also reassess housing allowances to stay competitive amid rising living costs.
The study also noted the significant impact of generative AI and digital transformation on job markets, with the UAE leading in AI adoption rates in the Middle East. Ted Raffoul, Mercer’s Middle East Career Products Leader, emphasized that these technological advancements are reshaping the skills required and placing additional pressure on salaries. He urged business leaders to promote digital literacy and adapt to evolving workforce needs to prepare for the future of work.
Mercer recommends that companies evaluate their current skill sets, understand hiring and retention trends, and develop robust Employee Value Propositions (EVP) to attract and maintain top talent.
