UAE Salary Forecast 2026: Which roles and sectors will see biggest pay hikes next year?

UAE workers will see an average salary increase of 4.1 per cent in 2026, according to Korn Ferry’s newly released UAE Salary Forecast 2026.

Employers are doubling down on efforts to retain specialist talent as living costs rise, economic growth accelerates and competition intensifies across the region.

The outlook highlights a labour market undergoing structural change, with employers shifting from reactive pay planning to long-term workforce design.

UAE salary forecast

The UAE’s 2026 forecast follows an average 4.2 per cent salary increase delivered in 2025.

While the focus is squarely on the UAE, broader GCC dynamics continue to shape employer behaviour. Saudi Arabia is projected to lead the region with a 4.6 per cent increase, followed by Qatar and Oman at 4.3 per cent, placing the UAE close behind.

The roles expected to remain the most sought-after functions in the UAE next year are in:

• Engineering
• Technology
• Logistics and Supply Chain
• Finance and Accounting

These categories reflect the country’s ongoing digital transformation, diversification programmes and rising technical capability requirements.

However, these same functions are also seeing the highest turnover levels — particularly in Sales, Finance and Accounting, and Engineering — as skilled employees reassess their opportunities in an increasingly competitive talent market.

UAE employers face rising GCC competition

Korn Ferry notes that employers in the UAE are navigating heightened rivalry from neighbouring economies. Saudi Arabia’s national transformation programmes continue to attract internationally mobile talent, pushing UAE organisations to offer more compelling career paths and retention strategies.

Sector performance is also shaping pay decisions. Banking, Real Estate, Oil and Gas, Industrial and Retail are projected to offer the strongest salary increases in 2026, supported by major investment pipelines and evolving operating models.

Vijay Gandhi, Regional Director, Korn Ferry Digital, EMEA, said: “The UAE has reached a level of market maturity where compensation planning can no longer be reactive. What we’re seeing now is a shift toward more intentional workforce design.

“Organisations are asking not only ‘How do we retain talent?’ but ‘How do we build the right capabilities for the next five years?’ That requires a much more sophisticated approach to reward, development, and long-term value creation.”

Young professionals

Anis Abdeljawad, Principal Director at Korn Ferry, said: “The hardest hit are young professionals. Longer hiring cycles, smaller raises, and limited advancement opportunities are reshaping early careers. This isn’t just a temporary slowdown, it signals a deeper structural shift, a slow-moving reset for regional workforces.”

According to Korn Ferry’s latest talent trends report, 43 per cent of companies plan to replace roles with AI. The functions most affected include operations and back-office jobs (58 per cent) and entry-level roles (37 per cent).

The shift could have long-term implications for leadership development, as entry-level positions traditionally serve as the foundation for building future managers and executives.