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Salaries in UAE to increase across all industries in 2025

In the UAE, salaries will rise in all sectors by 2025.

The results are in…

According to Mercer’s annual Total Remuneration Survey (TRS), salaries in the UAE are expected to rise by 4% in 2025 across all industries. The survey also revealed that over a quarter (28.2%) of organizations in the UAE plan to expand their workforce, highlighting a growing demand for talent.

According to Khaleej Times, over 700 companies in the UAE were surveyed, spanning a wide range of industries including energy, financial services, construction, real estate, technology, retail, wholesale services, and more.

According to Mercer’s annual

Employees in the consumer goods industry are expected to see the highest salary increase at 4.5%. Following closely are the life sciences sector (4.2%) and the technology industry (4.1%), with the energy and financial services sectors rounding out the top with a 4% increase.

The survey reveals that employers have stated all employees, regardless of their position or level, will receive the same salary increase.

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Mercer also focused on the impact of AI (artificial intelligence) and digital transformation on the hiring culture in the UAE.

According to statistics, the UAE leads the Middle East in adopting new AI methodologies.

Salaries in UAE to increase

So, how will this impact the work culture within companies and across the country? According to Ted Raffoul, Mercer’s Middle East Career Products Leader, “Generative AI and automation are quickly reshaping the job market, altering the skill sets our workforce requires, and putting extra pressure on salaries. Business leaders have a crucial role in fostering digital literacy and cultivating cultures that embrace change, ensuring that employees at all levels are equipped for the future of work.”

Due to companies adopting new technologies, Mercer recommends pinpointing their current skill inventories to pinpoint gaps and trace areas for development. Mercer also advises employers to develop a differentiated Employee Value Proposition (EVP) as its crucial in this ‘new reality.’

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