The finance and accounting job market in the UAE is experiencing a notable decline in starting salaries. This is due to an influx of expatriate candidates competing for these positions. With a high number of applicants, competition has become fierce, particularly for entry-level roles, leading to a decrease in salaries.
A recent report from Robert Half, a well-known recruitment consultancy, indicates that average salaries have fallen by as much as 23% for certain corporate accounting jobs. This trend reflects a change in hiring dynamics, as employers now have access to a broader talent pool without the need to offer higher wages.
The report highlights that finance professionals with specialized skills, such as financial planning and tax expertise, continue to be in demand despite the overall decline in starting salaries. However, the increasing number of expatriates arriving in the UAE without jobs has resulted in an oversupply.
It has lowered the market value of even these specialized positions. As companies find it easier and more cost-effective to fill roles, the abundance of candidates has significantly weakened the bargaining power of job seekers in the financial sector, especially at the entry-level.
While this hiring trend has provided advantages for UAE businesses by lowering salary costs. It poses potential challenges to employee morale. Gareth El Mettouri, Director for the Middle East at Robert Half, warns that employers need to consider the effects on their current workforce.
As existing employees may feel undervalued in light of the influx of lower-paid newcomers. Such an environment could affect loyalty and engagement, particularly if long-term staff view new hires as a means of cutting costs rather than as valuable team members.
Despite the decline in salaries within finance and accounting, some positions, especially in legal and compliance sectors, continue to see wage growth. This indicates an increased demand in these fields.
As regulatory requirements increase in the UAE, specialized legal expertise has become vital for companies maneuvering through the intricate landscape. This need for legal professionals shows that while some segments of the job market are experiencing wage pressures.
