by Mark Timms
Published Jun 20, 2025
by Mark Timms
Published Jun 20, 2025
The GCC job market entered 2025 with cautious optimism. Now we are halfway through the year, are the projections still as positive?. In the UAE, salaries are expected to rise by an average of 4% across all industries this year, with sectors like consumer goods, technology, and life sciences leading the way at 4–4.5% increases. More good news is that over a quarter of UAE companies stated that they are planning to expand their teams, signaling robust demand for talent.
Saudi Arabia shows a similar, though slightly more conservative, outlook, with expected salary increases ranging from 2% to 4% depending on the industry. High-growth sectors – such as AI, fintech, cybersecurity, and green energy—are seeing above-average pay hikes, reflecting the region’s ongoing digital transformation and mega-project investments.
Despite these positive trends, the pace of salary growth is moderating compared to the post-pandemic surge of 2022–2024. Employers are recalibrating pay to balance cost control with the need to attract and retain top talent.
While salaries are rising, so too is the cost of living – especially in the UAE. Nearly 70% of employees report that expenses, particularly for housing and education, are outpacing their earnings. This financial pressure is prompting many professionals to consider changing jobs or seeking better compensation packages.
Employers are responding by reviewing not just base salaries, but also benefits like housing allowances, medical coverage, and annual flight tickets to remain competitive and retain staff. For job seekers and employees alike, understanding the full value of a compensation package – not just the headline salary – is more important than ever.
Research and benchmark your worth
Consider the total compensation package
Showcase Your Unique Value
Approach Negotiations with Cultural Awareness
With salaries on the rise but living costs climbing even faster, 2025 is the year where informed negotiation and a holistic view of compensation are essential for both employers and candidates in the GCC. By researching market trends, understanding the full value of benefits, and approaching negotiations with confidence and cultural sensitivity, professionals can secure packages that reflect their true worth in a competitive market.