More than a quarter of organisations are planning to increase headcount next year, indicating a demand for talent, according to research from Mercer.
By Maggie Mancini
Mercer, a global leader in helping clients realise their investment objectives, released the findings from its annual Total Remuneration Survey. The survey reveals that overall salaries in the United Arab Emirates (UAE) are projected to increase by 4% across all industries in 2025 and that more than a quarter (28.2%) of organisations are planning to increase headcount next year, indicating a demand for talent.
More than 700 companies in the UAE were surveyed in a range of industries including energy, financial services, engineering, construction, real estate, manufacturing, retail, services, life sciences, and technology. Companies in the consumer goods industry are forecasting the highest increase to salaries at 4.5%. The life sciences and technology industries are forecasting increases of 4.2% and 4.1%, respectively, while the energy and financial services sectors are aligned to the market with 4% increases.
Employers across industries say they plan to provide all employees, regardless of level, the same salary increases.
“It is very encouraging to see a large segment of UAE employers planning to increase base salaries in 2025, reflecting a resilient and optimistic economic outlook. In addition to increasing salaries, HR professionals should also review their housing allowances, in light of increasing housing costs in the country, to remain competitive,” says Andrew El Zein, Mercer’s UAE career products leader.
Mercer’s survey also explored the impact that generative AI, automation, and digital transformation are having on the demand for skilled talent. Currently the UAE has the highest AI adoption rates in the Middle East, with 74% of people using AI once a week, and CEOs in the UAE expect AI to be a top driver for future growth, according to Mercer’s Global Talent Trends.
To address the adoption of new technologies, Mercer recommends employers assess their current skill inventories to pinpoint gaps and areas for development. They should also gain a better understanding of hiring and retention drivers to ensure they have the skills they need for the future. Developing a differentiated employee value proposition (EVP) will also be crucial in this new reality.
