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As the UAE economy continues to show strong results and is expected to grow above 3 per cent in 2024, the impact is directly visible in the recruitment industry with job demands up and an increase in the salary being paid out across multiple sectors.
In its most recent guide for UAE salaries, hiring consultant Cooper Fitch notes that unemployment is down 4.3 per cent from 2020 to 3.3 per cent in 2022. Additionally, the country’s introduction of unemployment insurance in January 2023 has had a positive impact on labour participation across the emirates.
“A larger proportion of UAE-based organisations grew their headcount in 2023 than in 2022, and more than half of this year’s respondents intend to increase remuneration in 2024. This is positive news for job seekers in the emirates as greater demand for talent typically results in higher salaries,” explains Trefor Murphy, founder and CEO of Cooper Fitch.
Non-oil sectors grow
The report notes that non-oil sectors such as real estate, technology and telecommunications, have seen billions of dollars worth of projects planned consequently the UAE’s jobs market remains strong as we head into the new year.
The overall headcount increased by 59 per cent in 2023 and the report reveals that 56 per cent of respondents (UAE-based organisations) expect to hire more people in 2024. The hiring is expected to be accompanied by an increase in salaries of existing workers as well as new hires.
Salary hikes could go into double digits
Cooper Fitch estimates that salaries in the UAE will grow by 4.5 per cent in 2024 and these will be seen across non-oil sectors.
The report added that more than one-third of companies – 39 per cent – have plans to raise wages by up to 5 per cent, while almost one in 10 plan to increase salaries by 6 to 9 per cent, and one in 20 are preparing for salary increments of 10 per cent or more.
The trend of a rise in wages began in 2023 with more than half of companies surveyed revealing that they raised salaries for their employees.
Bonuses in 2024
This year could be the year for bonuses with almost three-quarters of this year’s respondents (71 per cent) reported their intention to issue annual bonuses based on their organisation’s financial performance in 2023, compared to 29 per cent that had no such plans.
“While salaries continue to play a crucial role in talent retention, factors beyond fixed remuneration – such as annual bonuses and the ability to work remotely – are playing an increasingly important role in the UAE’s job market,” noted Jack Khabbaz, Managing Partner – CEO and Public Sector Advisory, Cooper Fitch.
Furthermore, employees working in sectors such as accounting, chemicals, consumer goods, and hospital and healthcare – can look forward to bonuses amounting to a generous six months’ basic salary.
