Salary Trends and Projections for 2025 in the UAE & GCC

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.

The cost of living challenge

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.

Salary negotiation strategies for 2025 in the UAE and GCC

Research and benchmark your worth

• Use up-to-date salary guides and industry reports to understand current pay ranges for your role and experience level in the GCC.
• Highlight certifications and specialised skills—such as PMP, CFA, or digital expertise—which can boost your value by 20–30%.

Consider the total compensation package

• Don’t focus solely on base salary. Negotiate for housing, transportation, education allowances, medical insurance, and performance bonuses.
• In the UAE, these benefits can add significant value, especially given rising living costs.

Showcase Your Unique Value

• Quantify your achievements: use metrics to demonstrate your impact (e.g., “increased sales by 30%” or “reduced costs by AED 100,000”).
• Tailor your negotiation pitch to show how your skills align with business goals and current market needs.

Approach Negotiations with Cultural Awareness

• Express appreciation for the offer and negotiate respectfully, using data and market benchmarks to support your case.
• Be patient and flexible—timing matters. The best moment to negotiate is after an offer is made or following a major achievement.

5. Know When to Walk Away

• Set clear boundaries for your minimum acceptable salary and benefits. If an offer doesn’t meet your needs, be prepared to explore other opportunities.

Conclusion

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.