Professionals across the Gulf are asking a pressing question: Will salaries rise again in 2026? New research suggests pay increases are becoming more common, especially as competition for talent intensifies in the UAE and wider GCC. According to the Hays GCC Salary Guide 2026, more workers received salary hikes in 2025 than the year before. But while pay is climbing, employee expectations are climbing even faster. The result is a widening gap between what professionals want and what employers may realistically offer.
Salary Increases Grew in 2025, With Some Seeing Major Gains
The report found that 58% of professionals received a salary increase in 2025, up from 51% the previous year. Most raises fell between 2.5% and 5%, showing steady but moderate growth across industries. Still, a smaller group saw dramatic jumps, with 12% reporting pay increases above 20%. These gains reflect strong demand in key sectors and an increasingly competitive hiring environment. For many workers, the Gulf labour market remains full of opportunity. Yet for others, the increases still feel insufficient.
Pay Dissatisfaction Remains High Across the Gulf Workforce
Despite the upward trend, dissatisfaction is growing. Around six in ten professionals said their pay does not match the level of responsibility they carry. This disconnect highlights a deeper challenge: jobs are expanding in scope, but compensation isn’t always keeping pace. As companies push for more productivity and specialised skills, employees are becoming more vocal about fairness. In the UAE jobs market, salary is no longer just a benefit—it’s a measure of recognition. Employers are now under mounting pressure to respond.
2026 Salary Hike Expectations Are Even Higher
Looking ahead, optimism is strong. The guide found that 78% of professionals expect a salary increase in 2026, with nearly one-quarter anticipating a raise above 20%. Employers also predict growth, with 70% saying salaries will rise within their organisations next year. However, most companies expect increases to stay within the up to 5% range, suggesting a mismatch between hopes and budgets. This gap could become a major tension point in 2026. Salary expectations are rising faster than many employers can match.
Hiring Momentum Stays Strong in UAE Jobs and Saudi Arabia
Recruitment remains robust across the region. Two-thirds of employers increased headcount in 2025, with the highest hiring activity recorded in the UAE and Saudi Arabia. Growth has been fuelled by investment in technology, banking, construction, property, logistics, and transport. Only 13% of organisations reported having no major hiring plans. For job seekers, this signals continued opportunity. But for employers, strong hiring has not solved the deeper talent shortage problem.
Skills Gaps Are Driving Competition and Higher Pay Pressure
Even with sustained recruitment, 90% of organisations reported skills gaps in 2025, ranging from minor to extreme. Employers cited uncompetitive salaries, intense talent competition, and limited training pipelines as leading causes. Many also pointed to a lack of clear career progression, making retention harder. Specialist technical and digital skills remain among the most in-demand areas for 2026. Leadership roles and expanded support functions are also strategic priorities. The UAE jobs market is increasingly shaped by scarcity of expertise.
Benefits Are Becoming the New Battleground for Retention
Salary alone is no longer enough to keep employees loyal. The report found that 27% of professionals changed employers in 2025, and nearly four in ten are considering a move in 2026. Misalignment between benefits offered and employee expectations is a major driver of turnover. Workers ranked child education allowances, flexible work, remote options, extra leave, and wellbeing days as top priorities. Employers, meanwhile, most commonly provide basic medical care and standard leave policies. This benefits gap is becoming a decisive factor in career decisions.
The Gulf Remains Resilient, But Employers Face a New Reality
Oliver Kowalski, Managing Director at Hays Middle East, noted that despite global uncertainty, the GCC continues to show resilience and forward momentum. Economic diversification and investment in non-oil sectors have positioned the region as a hub of innovation and opportunity. But the data makes one thing clear: professionals want more, and they’re willing to move if they don’t get it. In the UAE jobs landscape, 2026 may be defined not just by hiring growth, but by the race to meet rising salary and benefits expectations. Employers who adapt fastest will be the ones who retain top talent.
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