UAE salary increases forecast at around 3.4%, survey reports
A global compensation survey reported by Khaleej Times puts average UAE salary increases near 3.4% for the year, with real increases supported by low inflation.
Photo: kenteegardin (CC BY-SA 2.0)
Average salary increases in the UAE are running at roughly 3.4%, according to a compensation survey reported by Khaleej Times — modest in headline terms, but with UAE inflation low the real increase is positive, which is not the case in many of the markets our candidates come from.
The average hides the shape that matters. Increases cluster: high-demand technical, digital and specialist functions pull well above the mean, while general administrative and support roles sit below it. An employer who applies a flat percentage across the payroll typically overpays in the roles that are easy to replace and loses people in the roles that are not.
For 2027 planning, the practical step is to split the increase budget: a baseline aligned with the market average for everyone, and a separate retention pot released against named individuals in the functions where a counter-offer is likely.
What it means for employers
- Do not apply the market average as a flat increase; split baseline from targeted retention budget.
- Benchmark by function, not by grade — technical and digital roles are moving faster than the average.
- Identify counter-offer risks by name before the increase cycle, not after a resignation.
Related pages
Summarised by the Horizon GCC team. Original reporting: Khaleej Times
This briefing is general information, not legal advice. Confirm current requirements with the relevant authority before acting.
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