2025 UAE Market Trends and Outlook

Employers are firmly in the driving seat in the UAE, as more expats flock to the region to one of the world’s most desirable locations to experience the lifestyle and benefit from the growing economy.

While there is a wealth of available expat talent, businesses can offer lower salaries and strip back their benefits packages. With less competitive pay and benefits, those already living and working in the UAE are unable to change jobs – which is great for employers in terms of retention, but they must keep an eye on growing dissatisfaction and falling productivity.

It may be easier to find candidates, but that does not mean that those on the market have the right skills. Those with UAE experience are still in demand, but employers are often compromising their needs due to budgetary constraints, leaving them without the skills they need to succeed.

The current labour market in the UAE may be buoyant for employers, but they could be storing up issues for 2025, as many have been holding fire on hiring until the outcomes of global elections are known and interest rates fall or, at the very least, stabilise. When the flood gates open, many employers could find themselves competing for the best talent, and with 65 per cent of employees ready for a new role, the market could become much more fluid.

Hiring intentions

More than three in five (63%) of business leaders expect their overall headcount to increase in the next 12 months, with half (50%) agreeing that they need to hire more people due to growth.

After a year of international elections that saw many employers hold fire on hiring, we can expect a busy start to 2025. A third (33%) of business leaders say they were waiting to hire until the outcomes were known, while a similar proportion (32%) are waiting on interest rates to stabilise or decrease before making hiring decisions.

Business confidence about growth prospects in the year ahead likely to convert into increased hiring activity in the market.

of business leaders feeling confident about their organisations’ growth prospects in the year ahead of business leaders feeling confident about their organisations’ growth prospects in the year ahead

Employee intentions

While employers are finding it easier to hire than they were 12 months ago, many of the available candidates have recently relocated to the UAE and lack in-market experience so it is also important for businesses to retain the talent already in the company.

Employees recognise that increased competition for jobs in the UAE leaves them in a weaker position. Three-quarters (75%) report that it has become harder to negotiate a pay rise than a year ago, while more than half (52%) agree that they could be easily replaced by their employer. The competition also means it would be challenging to secure a new role that would align with their expectations, and two-thirds (65%) are staying in their role due to necessity rather than preference as a result.

Two-thirds of employees will look for a new job before the end of 2025.

of employees reporting they need a higher salary to meet their obligations of employees reporting they need a higher salary to meet their obligations

of employees citing the rising cost of living as a key driver for their likely move of employees citing the rising cost of living as a key driver for their likely move

Morale and job satisfaction

Employee satisfaction and morale are critical factors in helping organisations to remain productive and able to achieve their growth ambitions. Comparing employee and employer beliefs of how these have changed over the past 12 months suggests that employers may be over-optimistic, leaving room for improvements that could help to boost both productivity and retention.

While many employees feel that they need to stay at their current job due to market conditions, fluctuations could see significant levels of movement. Employers should identify areas that could improve job satisfaction and morale if they want to boost productivity and aid retention in the year ahead.

The gap between employers’ observations and employees’ experiences when it comes to satisfaction should act as a warning for business leaders.

of businesses report a rise in worker satisfaction for the past 12 months of businesses report a rise in worker satisfaction for the past 12 months

of employees suggest the same of employees suggest the same

Salary Access to
training Progression
opportunities Benefits Corporate
values Work-life
balance Flexible
working
arrangements Good fit with
other
employees Living
allowances Commute time Salary Access to
training Progression
opportunities Benefits Corporate
values Work-life
balance Flexible
working
arrangements Good fit with
other
employees Living
allowances Commute time

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Non-salary data referenced in this Salary Guide is from two online surveys developed by Robert Half and conducted by research consultancy Savanta. In May 2024, Robert Half commissioned a survey of 103 senior business decision makers in the UAE with hiring responsibilities. In August 2024, Robert Half commissioned a survey of 521 professionals living and working in the UAE. Both surveys used an online data collection methodology, and drew respondents from different business sectors and areas of the UAE.