It is more critical today for both employees and businesses within UAE society to have an understanding of salary trends. The employment market changes very rapidly. Moreover, inflation still impacts the cost of living. Businesses also find it imperative to attract and hold on to talent.
Various market research reports like Korn Ferry UAE Salary Forecast 2026, Cooper Fitch’ annual salary review, and hiring insights from major recruitment agencies have pointed towards a favourable market scenario for next year.
A comprehensive resource on UAE salary increases in 2026, including which industries will be most impacted and what can be expected from employees and businesses.
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What Does UAE Salary Forecast 2026 from Korn Ferry Reveal?
The Korn Ferry UAE salary forecast 2026 suggests that an average salary increase of approximately 4.1% will be offered by UAE-based companies in 2026. It is slightly higher compared to that offered in the previous two years. The reason for it is due to higher GDP and business confidence.
Reasoning Behind Korn Ferry’s Projection of an Increase
According to the report, there are various reasons that are contributing to an increase in compensation:
- Cost of living within UAE
- Robust economy with focus on tourism, trade, finance, logistics, and Information and communications technologies
- Demand for specialized occupations
- The UAE’s consistent strategy of making itself an attractive destination for global talent
The results agree with UAE salary market research conducted by Cooper Fitch and Robert Half, which forecast an increase in salaries for the next year.
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How Companies Are Adjusting Their Compensation Strategies in 2026
Companies within UAE are looking at restructuring remuneration. As a result of inflationary pressures and an ever-competitive job market, businesses are looking at ways to attract and hold on to the brightest and best employees while at the same time remaining financially stable.
Key adjustments seen in 2026:
- Smarter pay structures
Companies are restructuring salary packages to balance fixed pay and performance-based bonuses.
- Higher focus on employee retention
Many businesses are offering retention bonuses, internal transfers, flexible policies, and clearer growth paths.
- More flexible working
Hybrid working and flexible hours are becoming essential benefits, especially in tech, marketing, HR and professional services.
- Stronger focus on employee wellbeing
Companies are investing in wellness programmes, mental health support, and family-friendly benefits.
- Skill-based pay
Roles that require technical, engineering, or digital skills are being rewarded with higher salary growth due to talent shortages.
Employers are increasingly combining base salary increases with non-cash benefits to improve employee satisfaction without increasing long-term costs dramatically.
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Which roles and industries are set to make salary increases in 2026?
It should be noted that raises will not be uniform for all industries. There will be some industries that have better opportunities due to greater demand and talent scarcity.
| Sector | Expected Trend |
|---|---|
| Technology | Strongest salary growth due to AI, automation, cybersecurity and digital transformation |
| Engineering | High demand for mechanical, civil, and project engineers |
| Finance & Accounting | Stable increases, especially in audit, tax, and corporate finance |
| Banking & Investments | Salary growth driven by fintech and compliance roles |
| Real Estate | Strong hiring due to Dubai’s continued property boom |
| Oil & Gas | Competitive salaries driven by global energy needs |
| Logistics & Supply Chain | Continued expansion due to e-commerce and Dubai’s hub position |
| Retail & Hospitality | Moderate recovery-driven increases |
Roles expected to see the biggest salary hikes
- AI engineers and data scientists
- Cybersecurity specialists
- Software developers
- Financial analysts and auditors
- Supply-chain planners
- Banking compliance officers
- Real estate sales and leasing professionals
- Mechanical and civil engineers
These roles are difficult to replace, which pushes companies to offer attractive salary packages to attract and retain qualified professionals.
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Role of Population Growth and Competition for Employment on Wages
The UAE’s population continues to grow. According to Dubai statistics on Worldometer, Dubai’s population reached 3.65 million as of 2024. As a result, more people participate in the labor force, leading to more competition as well as fuelling business growth.
Why it matters
As we are all
- Organizations are employing more employees to meet a rising number of customers
- Competition within the GCC nations, primarily Saudi Arabia, forces UAE employees to offer competitive salaries.
- There are more multi-national businesses involving UAE today.
- Lack of talent in specialized fields
GCC Salary Comparison and UAE Salary
Countries such as Saudi Arabia, Qatar, and Oman are also offering raises as part of national transformation plans. As competition in the region continues to intensify, it can be seen that the UAE needs to offer raises in salaries, especially for skilled foreign employees.
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How Employers Are Retaining Talent and Supporting Young Professionals in 2026
The UAE’s labor force continues to turn increasingly young, digital, and ambitious. HR executives are reshaping labor force strategy to empower young employees and prevent talent gaps.
Important employee retention strategies adopted by employers
- Career development programmes
Companies provide leadership paths and mentoring.
- UAE national development projects
The Edaad programme assists young UAE professionals to gain international experience.
- Assisting young expats who enter the job market
Companies also help new workers with employee training and career paths.
- Preparing for AI’s Impact on Jobs
Companies are reskilling workers for digital tools and AI-assisted tasks.
- Streamlining recruitment cycles
Faster recruitment, skills-based testing, and talent planning have become very common.
Findings and insights from Cooper Fitch, Genie Recruitment, and Trefor Murphy discuss that businesses are making serious efforts in developing leaders for securing stability within the labor force.
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UAE Salary Expectations for 2026: General Verdict
According to market research, with a healthy level of economic activity and competition, it appears that UAE salaries will escalate in 2026 with an average increase of around 4-5%.
However, these will be subject to changes based on
- Industry
- Company performance
- Employee Experience
- Skill level
- Whether it is easy or hard to replace
Those occupations that are more specialized will include technology, engineering, finance, logistics, and banking.
FAQ
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Will UAE employee compensation grow in 2026 ?
Yes. It is predicted that salaries will increase by 4.1% in 2026, as stated by Korn Ferry and other leading HR consultancies.
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In what industries will there be strongest subsequent salary increases ?
Technology, Engineering, Finance, Logistics, Banking, and Real Estate.
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Will inflation affect salary increases ?
Yes. Many firms have begun paying higher salaries to help workers cope with rising costs of living.
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How do UAE salaries compare with Saudi Arabia and Qatar ?
The UAE continues to be competitive, but inter-Gulf salary competition is pushing salaries up.
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Will entry-level employees receive pay raises ?
Yes, but perhaps not as much as highly skilled ones. But young professionals appreciate upskilling and accelerated career progression.
