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    Home » UAE salary rise 2026 forecast revealed
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    UAE salary rise 2026 forecast revealed

    Arabian Media staffBy Arabian Media staffNovember 27, 2025No Comments7 Mins Read
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    Top jobs, bigger paychecks: UAE salary rise 2026 forecast revealed

    Image credit: Getty Images

    Employers across the UAE are gearing up for a pivotal year in workforce management as 2026 approaches, with compensation strategies reflecting a blend of economic growth, digital transformation, and mounting pressure to retain skilled talent. Korn Ferry’s latest UAE Salary Forecast 2026 provides a comprehensive view of how organisations are navigating rising costs of living, the acceleration of new skill requirements, and intensifying competition for high-impact professionals.

    The report highlights a shift from reactive pay adjustments to deliberate, strategic workforce planning. Organisations are no longer focusing solely on immediate talent retention; they are rethinking how to build capabilities for the next five years, while ensuring compensation remains competitive and aligned with broader business objectives.

    Read more-AI vs jobs in 2026: Why CFOs, CIOs and regulators will rewrite the rules in 2026

    While the report focuses on the UAE, regional trends are strongly influencing employer behavior. Across the GCC, Saudi Arabia is projected to offer the highest average salary increase in 2026 at 4.6 per cent, followed closely by Qatar and Oman at 4.3 per cent. The UAE, meanwhile, is forecasted at 4.1 per cent, slightly below the 4.2 per cent increase observed in 2025.

    This regional context underscores the competitive environment UAE organisations face in attracting and retaining talent. Employees now have a wider spectrum of opportunities within the Gulf, raising the stakes for companies seeking to maintain loyalty among specialist professionals.

    Specialist roles in high demand

    Within the UAE, specific functions remain at the center of workforce strategies. Roles in engineering, technology, logistics and supply chain, and finance and accounting are expected to see the strongest demand in 2026.

    These areas are being reshaped by sector diversification, digital transformation, and the need for new capabilities.

    Yet these same functions are experiencing high turnover, particularly in sales, finance and accounting, and engineering, as employees explore new opportunities in a market where high-skilled talent is increasingly mobile.

    “What we’re seeing now is a shift toward more intentional workforce design,” said Vijay Gandhi, regional director, Korn Ferry Digital, EMEA.

    “Organisations are asking not only ‘How do we retain talent?’ but ‘How do we build the right capabilities for the next five years?’ That requires a much more sophisticated approach to reward, development, and long-term value creation.”

    Anis Abdeljawad, principal director at Korn Ferry, highlighted the challenges faced by early-career professionals. “The hardest hit are young professionals. Longer hiring cycles, smaller raises, and limited advancement opportunities are reshaping early careers. This isn’t just a temporary slowdown, it signals a deeper structural shift, a slow-moving reset for regional workforces.”

    This structural reset is compounded by emerging technologies. According to Korn Ferry, 43 per cent of companies plan to replace roles with AI, targeting operations and back-office positions (58 per cent) and entry-level roles (37 per cent). Such shifts could have a long-term impact on leadership development pipelines, as entry-level positions are often the foundation for grooming future managers and executives.

    Economic growth fuels job market dynamics

    Michael Page UAE reports that the UAE economy grew by roughly 4 per cent in 2025 and is expected to accelerate to 4.5 per cent in 2026, primarily driven by non-oil sectors such as finance, technology, and professional services. Workforce growth has risen by 9 per cent, while new business formations are up 14 per cent, reflecting a vibrant and expanding economy. Over half of the UAE workforce now consists of youth talent, highlighting the critical role of younger professionals in shaping future business growth.

    Employee sentiment reflects these dynamics. While 52 per cent of workers report satisfaction with their current pay, nearly two-thirds are considering changing jobs in 2026. For most employees, salary remains the top motivation, yet work-life balance and opportunities for career growth are increasingly influential factors. Employers, in turn, are facing heightened challenges in recruitment and retention, Jon Ede, MD Middle East, Michael Page, said.

    Banking sector compensation in 2026

    A 2025 salary survey forecasting 2026 trends provides detailed insights across banking and finance roles.

    Wholesale banking: Heads of wholesale banking (EVP) earn between Dhs110,000 and 240,000 per month, averaging Dhs190,000. Senior relationship managers earn Dhs50,000–70,000, while relationship officers earn Dhs27,000–37,000.

    Retail banking: Heads of consumer banking (EVP) earn Dhs110,000–180,000. Managers in product and sales roles receive Dhs 30,000–50,000, while officers and assistant managers earn Dhs22,000–33,000.

    Institutional sales: Managing directors earn Dhs130,000–200,000 monthly, associates Dhs40,000–65,000, and client services officers Dhs30,000–40,000.

    Investment banking: Managing directors take home Dhs100,000–180,000, analysts Dhs32,000–45,000, and associates Dhs45,000–65,000.

    Private equity and venture capital: Managing Directors or CIOs earn Dhs95,000–170,000, vice presidents Dhs65,000–90,000, while venture capital analysts earn Dhs25,000–35,000.

    Insurance, compliance, and risk: Managing directors earn Dhs80,000–155,000, compliance heads Dhs70,000–120,000, and analysts Dhs20,000–30,000. Chief risk officers command Dhs85,000–180,000.

    Operations and finance in investments/funds: COOs earn Dhs75,000–150,000, middle-office staff Dhs30,000–40,000, CFOs Dhs85,000–200,000, and fund accountants Dhs20,000–40,000.

    The survey’s methodology, combining candidate interviews with recruitment data, ensures that these forecasts reflect actual market conditions, making them a reliable guide for organisations planning compensation strategies in 2026.

    Sales and marketing roles remain competitive

    Top-level executives in sales and marketing are also positioned for strong pay increases.

    Sales: CEOs are expected to earn Dhs100,000–160,000, with an average of Dhs120,000. Chief commercial officers (CCOs) and vice presidents will earn Dhs75,000–135,000. Regional sales directors earn Dhs55,000–85,000, regional sales managers Dhs35,000–60,000, and middle-management roles Dhs25,000–60,000. Entry-level and technical sales roles, including sales engineers and business development executives, earn Dhs10,000–30,000.

    Marketing: CMOs earn Dhs80,000–130,000, averaging Dhs100,000. Heads of marketing and marketing directors earn Dhs55,000–100,000, while regional PR and communications directors receive Dhs40,000–80,000. Bid directors and regional heads of product earn Dhs 40,000–75,000, and managers in PR, communications, and analytics earn Dhs20,000–65,000. Marketing research professionals earn Dhs12,000–30,000, reflecting entry- to mid-level standards.

    These salary trends reflect the UAE’s competitive positioning as a hub for top talent, with remuneration closely aligned to experience, responsibility, and sector-specific demand.

    Sectoral outlook: Where salaries will rise most

    Industries expected to deliver the strongest salary growth in 2026 include banking, real estate, oil and gas, industrial, and retail. Factors driving growth include major investment pipelines, evolving operating models, and increasing demand for specialist skills.

    Vijay Gandhi emphasises the strategic nature of compensation planning. “Organisations are asking the right questions around talent retention and capability building, moving away from reactive approaches to strategies that create long-term business value.”

    At the same time, the integration of AI and other technologies is reshaping operational roles and entry-level positions, requiring companies to invest in reskilling and workforce planning. These developments signal that the 2026 labour market will not only reward skill but also adaptability, innovation, and strategic alignment with organisational goals.

    As 2026 approaches, the UAE job market is set to remain highly competitive, with average salary increases projected at 4.1 per cent, slightly behind Saudi Arabia’s 4.6 per cent rise.

    Specialist roles in engineering, technology, logistics, finance, and accounting are expected to see the strongest demand, reflecting the ongoing digital transformation and sector diversification across the region. At the same time, AI adoption is poised to reshape 43 per cent of targeted roles, particularly in back-office and entry-level positions, making workforce planning and reskilling a strategic priority.

    Industries such as banking, real estate, oil and gas, Industrial, and retail are anticipated to deliver the most robust salary growth, underpinned by major investments and evolving operating models. For professionals, this means that while high salaries continue to be a key motivator, career growth, work-life balance, and adaptability to new technologies are becoming equally important in deciding where to focus their talent. Sales and marketing functions, in particular, will continue to offer premium compensation for leadership and specialist roles, underscoring the UAE’s position as a hub for top regional and global talent.






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