UAE Salaries Projected to Climb in 2026, with Specialized Roles Anticipating Over 10% Increases

DUBAI: Employees across theUnited Arab Emiratesare likely to see their salaries increase by an average of approximatelyfour per centin2026. However, individuals occupying highly specialized or difficult-to-replace positions could experience pay hikes exceedingten per cent, according to insights from leading recruitment experts.

Dr. Trefor Murphy, founder and CEO ofCooper Fitch, informedKhaleej Timesthat theUAE Salary Guide 2026suggests employers are preparing for salary adjustments ranging from1.6 per centto4 per centnext year. He observed that while companies initially forecasted no salary growth for2025, the actual increase reached2.6 per cent, implying that the increments fornext yearmight similarly surpass initial expectations.

The comprehensive survey indicates that a substantial84 per centof organizations intend to either raise or maintain current salary levels in2026, reflecting strong employer confidence within a competitive employment landscape. Nearly48 per centexpect to increase wages,37 per centplan to keep them unchanged, and15 per centforesee offering lower ranges to new hires.

Most adjustments are expected to fall within the0–5 per centbracket, with only a small segment of firms allocating budgets for higher raises. Roles intechnology,business transformation, andspecialized financeare particularly poised to benefit from increases above10 per cent. Global consulting firmKorn Ferryhas independently predicted a similar average salary rise of4.1 per centfor the upcoming year.

Dr. Murphyalso stated that theUAEis approaching2026with a robust economic outlook, bolstered by vigorous non-oil sector activity and increasing investment in strategic industries. TheCentral Bankprojects a real GDP growth of5.3 per cent, driven by sectors likeconstruction,financial services,logistics, and variousadvanced sectors, all contributing to upward pressure on salaries.

Recruiters are also reporting that companies are reintroducing benefits that were previously reduced or removed.Nicki Wilson, managing director ofGenie Recruitment, noted that while base salaries have largely remained stable, particularly beyond entry-level positions, many organizations are reinstatingfamily benefits,schooling allowances, and enhancedmedical coverageto attract and secure senior talent. She added that escalating inflation is prompting more employees to seek out new career opportunities.

Even if dramatic growth in base salaries is not universal, employers are increasingly focusing on comprehensive retention strategies, includingflexible work modelsandwell-being-oriented perks, to maintain their competitive edge in the evolving job market.