In the UAE, fewer employees are negotiating for salary raises as job market competition intensifies, providing employers with more choices to secure top talent.
Michael Page’s UAE 2026 Salary Guide reveals that 43% of UAE employees negotiated their salaries in the past year, down from 49% the year before.
Dubai’s population has reached an unprecedented four million, while the UAE’s total population is 11.44 million, according to Worldometer. The UAE is attracting significant foreign investments, and local businesses are expanding, creating numerous job opportunities for professionals seeking better prospects.
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The International Monetary Fund (IMF) recently forecasted robust growth for the UAE economy, predicting a 4.8% expansion in 2025 and 5% in 2026.
Nicki Wilson, managing director of recruitment consultancy Genie, noted that the rising population is impacting the UAE job market.
“While it increases the talent pool and competition, it also creates ‘grey noise’ around vacancies. Many professionals are moving to the region, alongside new businesses, regional office expansions, and local entrepreneurial hiring. Employers have more choices, but employees must adapt to remain visible, connected, and proactive,” she explained.
Wilson told Khaleej Times that the most intense competition is in retail, traditional marketing, FMCG, and C-level roles. “There’s also a surge at the entry level, notably in administration, PA, marketing executive, and customer service positions.”
Salary remains crucial
Genie’s managing director emphasized that a growing population doesn’t automatically lead to smaller salary increases, but it does change dynamics.
“Exceptional performance still paves the way for negotiations… results are more crucial than ever. With a larger talent pool, employers can make tough decisions and benchmark salaries more competitively. Ultimately, it’s a merit-based environment: high performers continue to be in demand, while employers are becoming more selective in rewarding or retaining talent,” she added.
According to Michael Page’s UAE 2026 Salary Guide, nearly 59% of UAE employees deem salary the most influential factor when considering a new job.
Meanwhile, 80% of UAE workers regard salary as one of the top five crucial aspects of their job.
“What’s also notable is the mindset of employees. While 52% are satisfied with their current pay, nearly two-thirds are open to changing jobs in 2026. For most, salary is the primary driver, but work-life balance and career growth are gaining importance. Employers, in turn, are finding it increasingly difficult to recruit and retain,” said Jon Ede, managing director, Middle East, Michael Page.
