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The Arabian News > Exclusive > UAE Jobs: Are Rising Populations Causing Salaries to Drop? A New Study Reveals
Exclusive

UAE Jobs: Are Rising Populations Causing Salaries to Drop? A New Study Reveals

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A new study shows that the rise in expatriate professionals moving to the UAE is causing a drop in employee salaries, making it easier for employers to find talent.

According to recruitment consultancy Robert Half’s 2025 Salary Guide, the average starting salary for professional roles in the country fell by 0.7% compared to last year. Additionally, more than half of employees are planning to search for new jobs next year due to increasing living costs.

Gareth El Mettouri, the director for the Middle East at Robert Half, explained that the UAE has seen a surge in talent in finance, accounting, and human resources, with these sectors experiencing the most significant salary reductions.

“It’s common for a company to receive over 2,000 applications for a single job opening. However, for more specialized positions in legal and technology, we usually see fewer candidates applying,” El Mettouri told in an interview.

Starting salaries in finance and accounting roles dropped by an average of 2.1%, with some corporate accounting positions seeing decreases of up to 23%. While there is still a strong demand for accounting professionals, especially those with skills in financial planning and tax, the large number of expats arriving in the UAE without jobs is pushing down their market value, according to Robert Half.

The UAE’s population has grown significantly, particularly in the major emirates of Abu Dhabi and Dubai, reaching record highs due to an influx of investors and professionals.

As of November 4, 2024, Dubai’s population was 3.798 million, marking an increase of 140,000 in just the first 11 months of 2024. In 2023, Dubai’s population rose by over 100,000.

Abu Dhabi’s population hit 3.789 million in 2023, showing an increase of 83% since 2011, according to the Abu Dhabi Census 2023. As reported by worldometers.info, the UAE’s total population reached 11.135 million on November 4, 2024, up from 10.642 million in 2023 and 10.242 million in 2022.

Some job roles, however, are seeing salary increases. Robert Half reported that starting salaries for in-house legal roles rose by 1.6% as demand for mid-level legal counsel grows, with average starting salaries increasing by 15%. This demand is driven by a rising interest from global investment companies in UAE businesses, with many privately owned companies planning to go public and needing experienced legal support.

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