In a striking sign of economic confidence, 75% of employers in the United Arab Emirates (UAE) anticipate raising salaries in 2025, as highlighted by the GCC Salary Guide 2025 issued by the recruitment consultancy Hays.

This forecast reflects an overarching optimism about the country's economic trajectory, accompanied by tangible indicators such as a rise in recruitment plans, particularly concerning permanent roles.

According to the recently published guide, 48% of UAE employees experienced salary hikes in 2024, with increments typically ranging from 2.5% to 5%.

Looking forward, 74% of employees expect further salary increases in 2025. This expectation aligns closely with employers' outlook, with 49% of firms expressing optimism about the economic climate by 2025.

The macroeconomic factors underpinning this buoyancy are significant.

The UAE's economic environment is perceived as robust by 77% of employers, who are committed to expanding their permanent workforce in the current year.

Nonetheless, accompanying this employment surge is a notable job mobility among professionals: 65% of UAE workers plan to change jobs, primarily driven by considerations of salary, benefits, and career development opportunities.

Among UAE nationals, the survey reveals an intriguing trend: a more substantial 16% salary increment was most frequently reported by the minority whose pay rose in 2024. These increases were often achieved through new job opportunities, reflecting an intense competition in the market driven by Emiratisation policies.

Such policies continue to shape hiring strategies, with 72% of UAE nationals expecting a pay rise in the upcoming year.

The push for localisation is evident, with the Emiratisation programme maintaining its pivotal role in employment strategies.

The proportion of employers currently hiring UAE nationals increased from 51% to 55%, and 46% of firms aim to expand their Emirati workforce in 2025.

The advent of artificial intelligence (AI) technologies in the business landscape forms another critical vector of transformation.

As digital tools become increasingly integral, 65% of UAE companies advocate for the integration of AI in the workplace, with 79% of employers predicting its eventual widespread use among staff.

These findings underscore the shifts within the UAE's labor market as it adapts to a balance of traditional growth drivers and emerging technological paradigms.

With a focus on sustainable salary increments and strategic hiring, the UAE's employment landscape appears poised for continued evolution in the coming years.