Salaries in the UAE are expected to increase by 4.5% in 2024, said a new report released on Wednesday by Cooper Fitch, due to the country’s strong performance of non-oil sectors and an increase in the OPEC+ oil quota.
“While salaries continue to play a crucial role in talent retention, factors beyond fixed remuneration – such as annual bonuses and the ability to work remotely – are playing an increasingly important role in the UAE’s job market,” said Jack Khabbaz, managing partner and CEO of public sector advisory at Cooper Fitch.
The report under the title “Salary Guide UAE 2024” said that the majority of firms expect to increase their employees’ salaries in 2024. The company said more than one-third plans to raise wages by up to 5%.
However, more than one-fifth, 21%, of the firms expect to lower salaries in 2024.”While more than a quarter have no plans to revise their employees’ wages during the coming year,” Cooper Fitch said.
The firm surveyed business leaders responsible for key decision-making at more than 1,000 organisations across the Gulf region. Their 11 confidential questions, focused on recruitment activity, organisational headcounts, and salary trends across 2023 and into 2024.
According to the survey, more than half of the respondents said they raised the salaries; in 023. Around 8% of the organisations increased their salaries by 10%, explaining that talent retention has been a priority for certain sectors.
More than a quarter of the surveyed companies said that they have no plans to revise the salaries in 2024.