UAE: Fewer employees negotiating salary hike amid growing competition, population

Fewer employees in the UAE are negotiating salary increases as competition is growing in the job market, giving employers more options to get the best talent in the market.

According to Michael Page’s UAE 2026 Salary Guide, 43 per cent of employees in the UAE negotiated their salaries in the last 12 months, compared to 49 per cent during the same period in the previous year.

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Dubai’s population recently reached four million — the highest ever, while the UAE’s population, according to Worldometer, hit 11.44 million this year. The UAE is attracting a lot of foreign investment as well as local businesses expanding their portfolio to take advantage of the fast-growing economy, hence creating a lot of job opportunities for professionals looking for greener pastures.

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Recently, the International Monetary Fund (IMF) projected a strong growth forecast for the UAE economy, expecting it to expand 4.8 per cent in 2025 and five per cent in 2026.

Nicki Wilson, managing director of recruitment consultancy Genie, said the growing population is certainly influencing the UAE job market.

“While it brings a larger talent pool and increased competition, it also creates a lot of ‘grey noise’ around vacancies. There’s a strong influx of professionals moving to the region, alongside a rise in new businesses, regional office expansions, and entrepreneurs hiring locally, too. Employers do have more choice, but employees must also evolve to stay visible, connected, and proactive,” she said.

Wilson told Khaleej Times that the most intense competition is across retail, traditional marketing, FMCG, and C-level positions. “There’s also a significant influx at the entry level, particularly in admin, PA, marketing executive, and customer service roles.”

Salary most important aspect

The managing director of Genie stressed that a growing population doesn’t automatically mean smaller salary increases but it does shift dynamics.

“Exceptional performance still opens the door for negotiation... results speak louder than ever. However, with a broader talent pool available, employers are in a stronger position to make tough calls and benchmark salaries more competitively. Ultimately, it’s a merit-based environment: high performers remain in demand, while employers are becoming more selective when rewarding or retaining talent,” she added.

According to Michael Page’s the UAE 2026 Salary Guide, nearly six out of 10 UAE employees — 59 per cent — consider salary the most influential decision when taking a new job.

Meanwhile, 8 out of 10 — 80 per cent — workers in the UAE consider salary to be among the top five most important aspects of their job.

“What’s equally interesting is the mindset of employees. While 52 per cent are satisfied with their current pay, nearly two-thirds are open to changing jobs in 2026. For most, salary is the top driver, but work-life balance and career growth are becoming just as important. Employers, in turn, are telling us they’re finding it harder to both recruit and retain,” said Jon Ede, managing director, Middle East, Michael Page.

Waheed Abbas

waheedabbas@khaleejtimes.com

Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that directly affect the lives of UAE consumers. He frequently reports human interest stories, too.