Top jobs, bigger paychecks: UAE salary rise 2026 forecast revealed

Core Insights - Employers in the UAE are preparing for significant changes in workforce management as 2026 approaches, focusing on compensation strategies that align with economic growth, digital transformation, and talent retention [2][3] - The Korn Ferry UAE Salary Forecast 2026 indicates a shift from reactive pay adjustments to strategic workforce planning, emphasizing long-term capability building alongside competitive compensation [3][21] Economic Context - The UAE economy grew by approximately 4% in 2025 and is expected to accelerate to 4.5% in 2026, driven mainly by non-oil sectors such as finance, technology, and professional services [10] - Workforce growth in the UAE has risen by 9%, with new business formations increasing by 14%, indicating a vibrant economic landscape [10] Salary Trends - Average salary increases across the UAE are projected at 4.1% for 2026, slightly below Saudi Arabia's forecasted 4.6% increase [4][22] - Specialist roles in engineering, technology, logistics, finance, and accounting are expected to see the strongest demand, driven by sector diversification and digital transformation [6][23] Sector-Specific Insights - Industries anticipated to deliver the most robust salary growth in 2026 include banking, real estate, oil and gas, industrial, and retail, influenced by major investment pipelines and evolving operating models [20][24] - In the banking sector, compensation for heads of wholesale banking ranges from Dhs110,000 to 240,000 per month, with senior relationship managers earning between Dhs50,000 and 70,000 [12][13] Workforce Dynamics - High turnover rates are observed in specialist roles, particularly in sales, finance, accounting, and engineering, as employees seek new opportunities in a competitive market [7][8] - Companies are increasingly focused on building the right capabilities for the future, requiring sophisticated approaches to talent retention and development [8][21] Employee Sentiment - While 52% of workers report satisfaction with their current pay, nearly two-thirds are considering job changes in 2026, indicating a shift in employee priorities towards work-life balance and career growth opportunities [11]