Compensation and Benefits Trends in UAE

What do Employees Value the Most in UAE?

According to a report by Hays, a good work atmosphere and salary and benefits are the two most important factors for professionals in the UAE. A report by Gallup on the key working trends in UAE showcases a positive outlook for employees. Over half of UAE employees (56%) report being highly satisfied with their workplace, marking a significant 15-percentage-point increase since 2019. Additionally, overall employee engagement has surged from 19% in 2019 to 30% presently—a noteworthy development amid the global turbulence.

Salary and Benefits Trends in UAE (2024)

[fs-toc-omit]UAE Employer

UAE Employer 

• 80% of employers expect salaries within their organization to increase in 2024.
• 49%of employers offer no remote or hybrid options to their employees 
• 58% of employers feel optimistic about the economic outlook for 2024 
• 69%of employers plan to increase headcount in 2024

[fs-toc-omit]UAE Employee [fs-toc-omit]

• 52% of employees’ salaries increased in 2023, most commonly by up to 5% 
• 72%of employees expect salaries to increase in 2024 
• 57% of employees feel optimistic about the economic outlook for 2024 
• 30%of employees plan to change organization in 2024

Benefits Trends in UAE

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Average Salary Range for Each Role

Emiratisation Trends in 2024

There's a strong demand for citizens of the United Arab Emirates and Saudi Arabia. When hiring managers need to fill a job, they usually prioritize finding a skilled, qualified, and experienced citizen from their own country.

[fs-toc-omit]Emirati hiring is expected to increase due to changes in policies 

• Emiratisation is a core policy for the UAE government, significantly impacting even small private companies.
• 52% of UAE organizations plan to increase their Emirati headcount in the next 12 months.

[fs-toc-omit]Employers need to bridge the benefits gap for higher retention

• 47% of UAE nationals received a salary increase last year, mostly up to 5%, attributed to promotions or role changes within the same organization.
• 53% of Gulf market professionals also received salary increases, often by changing employers.
• 23% of UAE nationals are actively preparing to move organizations, 40% are open to new opportunities, and only 17% plan to stay in the same role.
• 43% of Emiratis do not currently receive any benefits.
• The primary reason for job changes among Emiratis is the misalignment of benefits, with top-valued benefits being air ticket/travel allowances, child education allowances, and flexible working.

Employers should offer tailored and personalized benefits packages and conduct regular reviews based on employee feedback and market trends.

[fs-toc-omit]Work-life balance becomes a top priority for employees 

• 35% of professionals intending to change jobs cite poor work-life balance as a primary reason.
• 25% emphasize the importance of work-life balance initiatives when choosing an employer.

Employers should consider flexible working hours, remote or hybrid options, and wellness programs to enhance work-life balance and improve staff attraction and retention.

[fs-toc-omit]Skilled senior professionals continue to be in top-demand 

• There is a shortage of senior professionals in key sectors like Technology, Healthcare, and Environmental Engineering.
• Roles in high demand include Data Scientists, Digital Marketing professionals, Project Managers, and Business Development and Sales experts.

Employee Retention for Emiratis 

52% of organizations plan to increase their Emirati workforce next year due to the latest policy updates. However, employee retention of Emiratis and bridging the skill gap remain the top challenges for companies. 

[fs-toc-omit]1. Salary Increases

47% of UAE nationals received a salary increase last year, mainly from promotions or role changes within the same organization.

[fs-toc-omit]2. Career Progression vs. Job Switching

Emiratis focus on career progression within current workplaces compared to other Gulf professionals who seek growth opportunities in other organizations. 

[fs-toc-omit]3. Future Job Intentions for Emiratis 

23% of UAE nationals are preparing to move organizations.

40% are open to new opportunities while staying with their current organization.

17% plan to stay in the same role.

[fs-toc-omit]4. Retention Challenges for Emiratis

Limited pool of skilled candidates, particularly in Technology and Banking & Financial Services.

The primary reason for Emiratis leaving: Misalignment between benefits and needs.

[fs-toc-omit]5. Most Valued Benefits For Emiratis

The top 3 benefits for Emiratis are air ticket/travel allowances, child education allowances, and flexible working.

However, 43% of Emiratis currently receive no benefits.

[fs-toc-omit]6. Importance of Work-Life Balance:

• 35% of professionals planning to change jobs cite poor work-life balance as a primary reason.
• 25% consider work-life balance initiatives when choosing an organization.

Emirati Workforce Profile

[fs-toc-omit]1. Workforce Shortages 

• Sectors with Emirati Talent Needed: Technology, Healthcare, Environmental Engineering

[fs-toc-omit]2. High-Demand Roles

• Data Science: Crucial for digital transformation.
• Digital Marketing: Needed to navigate the digital economy.
• Project Management: Essential for smart city initiatives.
• Business Development & Sales: Supports economic diversification and global business hub status.

[fs-toc-omit]3. Valued Skills

• Technical Skills: Key roles in high-demand sectors.
• Soft Skills: Adaptability, problem-solving, effective communication.
• Language Skills: Professional Arabic and English proficiency.
• Leadership Skills: Demand for future leaders with a youth investment focus.

Key Takeaways

• There’s a need to upskill Emirati employees to prepare them for the increased demand for specialized roles. 
• The primary reason for job changes among Emiratis is the misalignment of benefits.
• Employers should consider flexible working hours, remote or hybrid options, and wellness programs to enhance work-life balance and improve staff attraction and retention.