Salary increases have become more common across the Gulf, yet a growing divide is emerging between what professionals believe their roles warrant and what employers are willing to pay, according to new regional labour-market research.
Data from the 2026 GCC salary study shows that pay rises were more widespread last year, with more than half of surveyed professionals reporting an increase in 2025. Most adjustments clustered in the low single digits, although a small share experienced substantial jumps exceeding 20 per cent. Even with those gains, a majority said their compensation still does not reflect the scope of their responsibilities.
Confidence about future earnings remains high on both sides of the hiring table. A large proportion of professionals anticipate another raise in 2026, and nearly one in four expect a significant increase. Employers also expect salaries to move upward next year, though most forecast modest adjustments capped at around five per cent, signalling a potential mismatch between expectation and delivery.
The findings draw on responses from more than 1,600 employers and employees across the Middle East and form part of the annual GCC-wide analysis by Hays Middle East, which tracks close to 400 roles across 11 industries.
Workforce expansion remained a defining feature of 2025. Around two-thirds of organisations added staff, with the most active hiring reported in the UAE and Saudi Arabia. Growth was concentrated in technology, financial services, construction, real estate, and transport and logistics, while only a small minority of employers said they had no significant recruitment plans.
Despite sustained hiring, shortages persist. Most organisations surveyed said they faced skills gaps during the year, citing uncompetitive pay packages, intense competition for specialised talent, limited access to relevant training, and constrained career progression. Retention has proven equally difficult as employers struggle to keep pace with escalating salary expectations.
Job mobility reflects that pressure. More than a quarter of professionals changed employers in the past year, and a sizeable share are considering a similar move in 2026. Alongside pay, dissatisfaction with benefits featured prominently in decisions to leave.
Employees identified education allowances for children, additional leave, flexible or remote working options, and wellbeing-related time off as the most valued benefits. Employers, however, reported that standard offerings remain centred on medical leave, basic private healthcare and limited extra leave days, underscoring a growing benefits gap.
Oliver Kowalski, Managing Director at Hays Middle East, said: “Despite ongoing global economic uncertainties, the Gulf region continues to demonstrate resilience and forward momentum. Economic diversification, strategic fiscal reforms, and investment in non-oil sectors have positioned the GCC as a hub of innovation and opportunity.”
