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Employers in the UAE Expect Salary Hikes in 2025, with 75% Forecasting Increases

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A recent survey, the GCC Salary Guide 2025, has revealed a positive trend in salary expectations for employees in the UAE. The report shows that nearly half of the workforce, 48%, received salary increases in 2024, with most increments ranging from 2.5% to 5%. Looking ahead, an optimistic 74% of employees are hoping for further pay rises in 2025. Interestingly, 75% of employers also expect salaries to go up within their organizations in the coming year, reflecting a favorable market outlook despite broader economic factors.

UAE Recruitment Trends for 2025

The report also highlights recruitment trends, with 77% of employers in the UAE planning to hire for permanent positions this year. This growth comes as the UAE economy remains strong, signaling a positive outlook for the job market. However, a significant 65% of professionals in the UAE are considering changing jobs, primarily driven by the desire for better salary packages, benefits, and career development opportunities.

The Role of Artificial Intelligence (AI) in the Workforce

Artificial intelligence (AI) is expected to play a larger role in the workplace moving forward. According to the survey, 65% of UAE companies plan to incorporate AI tools, and 79% of employers foresee allowing their employees to use AI in their daily tasks. This shift shows the increasing importance of AI in enhancing productivity and efficiency across sectors.

Salary Trends Among UAE Nationals

For UAE nationals, the trend in salary increases is even more pronounced. Many Emiratis saw their salaries rise by as much as 16% last year. Looking toward 2025, 72% of UAE nationals expect their pay to increase, while 28% believe it will remain steady. This reflects the highly competitive job market and the growing demand for skilled local talent.

Employers focusing on Emiratisation are particularly concerned with offering competitive salaries, given the growing pool of talented nationals seeking better job opportunities. Over the past year, 55% of employers have hired UAE nationals, up from 51% in 2023.

Job Mobility Among UAE Nationals

An important trend emerging in 2025 is the significant increase in job mobility. While 67% of UAE nationals plan to change employers this year, up from 23% last year, job satisfaction remains heavily influenced by opportunities for career development. Training, upskilling, and regular feedback are key elements contributing to the decision of UAE nationals to move to a new employer.

Employers are advised to stay competitive by offering career advancement opportunities to retain talent, as professional growth becomes an essential factor in employee retention.

Emiratisation: The Growing Focus on Local Talent

The UAE's Emiratisation strategy continues to be a priority for businesses, with 46% of employers planning to expand their hiring of UAE nationals in the near future. Most positions continue to be filled by permanent contracts, while temporary or contractual roles remain a smaller portion of the market.

The increased demand for UAE nationals, coupled with a focus on training and development, will play a central role in shaping the workforce landscape in 2025.

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