A significant number of companies in the United Arab Emirates (UAE) are preparing to raise salaries in 2024, as revealed by a recent survey. The “Salary Guide UAE 2024” report, released on Wednesday by Cooper Fitch, indicates a 4.5 percent expected salary increase across various sectors, particularly in the non-oil segments like real estate.
The survey highlights that 53 percent of UAE firms plan to hike their employee salaries next year. Detailed breakdowns show that 39 percent of these companies anticipate up to a 5 percent salary increase, about 10 percent foresee hikes between 6 to 9 percent, and 5 percent of firms are preparing for a raise of 10 percent or more.
Contrastingly, 21 percent of companies expect to decrease salaries in 2024, a surprising move considering the growing demand for top talent. Additionally, over a quarter of the firms do not intend to revise salaries in the coming year.
Despite the expected moderation of the UAE’s economic growth to around three percent this year, from last year’s 7.9 percent, the non-oil sectors like real estate, travel, tourism, and aviation are projected to drive economic growth.
Reflecting on 2023, the Cooper Fitch survey found that 81 percent of firms either raised or maintained their employees’ salaries. More than half of the companies, 54 percent, increased wages, signaling a strong demand for talent in the region. Notably, 8 percent of these firms raised salaries by more than 10 percent, emphasizing the importance of talent retention in specific sectors.
The survey also shed light on the trends in annual bonuses. It was reported that 71 percent of companies plan to issue bonuses based on their 2023 financial performance. The majority of these firms are likely to pay a bonus equivalent to one month’s basic salary, while others range from two to six months’ salary. Fields such as accounting, chemicals, consumer goods, and hospital and healthcare are expected to offer generous bonuses.
In contrast, sectors like financial services, consulting, and IT are less likely to pay bonuses.
Jack Khabbaz, managing partner and CEO of public sector advisory at Cooper Fitch, emphasized that while salaries are crucial for talent retention, other factors like annual bonuses and flexible work arrangements are increasingly significant in the UAE job market.