Salary negotiations in the UAE have declined sharply over the past year as international competition and a more cautious workforce reshape the country’s job market, according to recruitment consultancy Michael Page.
The findings come as the UAE’s population continues to rise, fuelled by an influx of skilled professionals from Europe and other regions seeking career opportunities in the Gulf. Dubai’s population surpassed four million this year due to the Emirates’ growing appeal as a global talent hub.
In its 2026 UAE Salary Guide, the firm said 49 per cent of professionals attempted to negotiate their salaries in the past 12 months, but only 15 per cent succeeded. That compares with 64 per cent attempting and 24 per cent succeeding in 2024, highlighting a growing sense of restraint among employees as more overseas talent enters the market.
“While 52 per cent are satisfied with their current pay, nearly two-thirds are open to changing jobs in 2026,” said Jon Ede, Managing Director for the Middle East at Michael Page.
“Salary remains the top priority, but work-life balance and career growth are becoming just as important. Employers, in turn, are telling us they’re finding it harder to both recruit and retain staff.”
New data highlights changing UAE salaries
The new guide shows salaries are increasing across most sectors, particularly for digital and leadership roles, as companies compete for skilled professionals in areas such as artificial intelligence, sustainability, and finance. However, competition for top talent has intensified, with two-thirds of employees still considering new opportunities despite higher satisfaction levels.
The UAE’s economy is projected to grow by 4.5 per cent in 2026, driven mainly by non-oil sectors. Employers are facing greater pressure to attract and retain specialised workers while adapting to new expectations around flexibility, upskilling, and hybrid work.
The report also noted a shift in hiring priorities: job descriptions are expanding to include delivery and measurable outcomes, while employers increasingly value hybrid skill sets that combine strategy, data literacy, and financial acumen.
The 2026 Salary Guide includes data for more than 500 professions across 18 sectors, from technology and energy to banking, healthcare, and professional services. The firm has also introduced an interactive online tool that allows users to compare salary data by industry, experience level, and location.
“Clarity around pay is more important than ever in a market that continues to attract international professionals,” Ede said. “Our goal is to give both employers and job seekers the information they need to make confident decisions.”
The 2026 edition builds on last year’s findings. The 2025 Salary Guide revealed that while 52 per cent of employees were satisfied with their salaries, 65 per cent were still exploring new job opportunities, reflecting persistent retention challenges.
Michael Page also released an Emiratisation Salary Guide 2025 to help private companies meet nationalisation targets requiring those with 50 or more employees to increase their Emirati workforce by 2 per cent each year.
The guide is available through the Michael Page website and is designed to help businesses build competitive compensation packages while enabling professionals to benchmark their market value.
Follow us on
