UAE Jobs: Salaries Set to Increase by 4% in 2026, With Some Roles Expected to Receive Over 10% Raises

Economic forecasts for 2026 suggest that many workers in the United Arab Emirates will see their salaries go up by about 4%. This increase is seen as a response to inflation, shifting labor demand, and the need for employers to remain competitive in attracting a global workforce.

However, not all workers will receive the same level of raise. Employees in certain sectors — particularly those with specialized skills or those in high demand — are expected to benefit more significantly. Professionals in fields such as information technology, healthcare, engineering, construction, and luxury hospitality are particularly well-positioned. These sectors are seeing strong growth driven by the UAE’s expanding economy, rising infrastructure investments, and ongoing digital and service-oriented transformation.

In contrast, mid-level and entry-level workers in other fields can still expect a modest raise of about 4%, which may help offset living-cost increases and keep their compensation competitive with regional labor markets.

Several factors are driving this anticipated wage growth. First, there’s a rising demand for skilled talent in growing sectors, especially as the UAE diversifies into technology, renewable energy, tourism, and infrastructure development. Second, cost-of-living and inflation adjustments are prompting employers to raise wages to preserve purchasing power for their employees. Third, in a global labor market where expatriate workers are abundant and mobility is high, companies are enhancing pay packages to attract and retain qualified staff. Finally, in many industries, retention and stability are becoming priorities — prompting firms to offer better compensation to avoid turnover as workers move between opportunities.

For employees — or those considering working in the UAE — this forecast offers useful guidance. It’s a good time to review current salaries and benefit packages, especially if you have skills in high-demand sectors. Updating your résumé or CV to reflect specialized skills may increase your chances of qualifying for a higher raise. If your role falls in one of the booming sectors, now could be the right time to negotiate for improved terms or consider advanced or alternative roles. For others, staying informed about industry trends and living-cost developments can help you make strategic decisions about employment and budgeting.

Overall, the projected 4% average salary increase — combined with potential double-digit raises for certain in-demand roles — presents a positive outlook for many workers in the UAE. As the economy evolves and demand for specialized talent grows, the coming year may bring meaningful improvements in pay and living standards for many expatriates and residents alike.