A new forecast titled “UAE Salary Check Forecast 2026” by global consulting firm Korn Ferry shows that the 4.1 per cent UAE Salary Rise 2026. Hence, it has reflected a stable economic outlook and growing competition among young talent.
However, the difference is marginal compared to the 4.2 per cent increase in 2025. So, it indicates a maturing labour market where salary structures are closely aligned with inflation, cost of living, and long-term business strategies.
Industry experts said that the UAE is seeing a strategic shift from blanket salary increments to targeted pay increases for critical, hard-to-replace roles. Moreover, companies are prioritising specialists who can add long-term value as the economy diversifies and digital transformation boosts.
Firms Shift to Differentiated Pay Strategies
The HR experts note that across-the-board indicators are no longer sustainable. Instead, businesses are giving higher increments for specialist talent, which is the change toward the following elements:
- Economic diversification
- AI adoption and automation
- Digital infrastructure
- Strong competition within the GCC
It means that you will get strong negotiation power in 2026 if you are a job seeker with niche expertise. In addition, Cooper Fitch’s UAE Salary Guide 2026 also supports this trend. It estimates a salary growth between 1.6 per cent and 4 per cent. However, the UAE Salary Rise 2026 guide notes that a few companies might offer more than 10 per cent increment in high-demand areas such as technology, transformation, and specialised finance.
Roles That Will See the Highest Salary Increases
Specialist function is the biggest winner in the UAE Salary Rise 2026. Below is the list of the top roles that might see the highest increase in their salary in the UAE Salary Rise 2026:
- Engineering
- Technology & Digital
- Logistics and Supply Chain
- Finance & Accounting
These fields are aligned with the growing focus of the UAE on advanced manufacturing, smart infrastructure, fintech innovation, and logistics expansion as the country strengthens its position as a global trade hub. Interestingly, these sectors also report the highest UAE employee turnover because professionals report being willing to switch employers for better pay and career growth.
Sectors Leading the Growth in 2026
Here is the list of top industries that are expected to offer the strongest salary increase in the UAE in 2026:
1. Banking & Financial Services
These sectors could offer improved salaries due to the fintech expansion, wealth management, compliance, and risk roles.
2. Real Estate & Property Development
Dubai and Abu Dhabi’s mega-projects, population growth, and foreign investment continue to boost demand.
3. Industrial, Oil & Gas Manufacturing
Many diversification initiatives and heavy infrastructure investment could support the salary hike in these sectors.
4. Retail & Consumer Goods
Rising consumer spending and population growth could boost salaries in this sector.
AI and Automation: The Biggest Salary Influencer
By 2026, around 40 per cent of companies in the UAE are expected to replace some roles with the AI system, especially operational, administrative, and entry-level jobs. However, this shift does not indicate mass job losses. Yet, it signals the following transformations:
- Lower demand for traditional entry-level roles
- Higher demand for technical, AI-driven, and analytical roles
- A restructuring of hiring budgets towards specialist talent
The talent market is becoming divided: high skills = high pay; routine skills = limited growth.
Tougher Outlook for Fresh Graduates
Below are the top difficulties that younger professionals will face due to the UAE Salary Rise 2026:
- Longer hiring cycles
- Lower starting salaries
- Slower promotion paths
- Smaller annual increments
GCC Competition Intensifies Salary Planning
Saudi Arabia is expected to lead the GCC salary increases at 4.6% followed by Qatar and Oman at 4.3%. Hence, this has increased the competition for talent across the region. So, this factor has pushed the UAE firms to offer the following perks:
- Competitive compensation
- Performance bonuses
- Better benefits
- Work-life balance initiatives
- Clearer career paths
Companies are focusing on total rewards, like schooling benefits, family allowances, and enhanced medical coverage, to retain top talent.
What UAE Jobseekers Should Know for 2026
- Specialists win big: Engineering, tech, supply chain, and finance experts will see the strongest salary growth.
- Generalists see slower growth: Routine roles face fewer opportunities and lower salary increases.
- Sector choice matters: Banking, real estate, industrial, and retail sectors offer above-average increments.
- Upskilling is mandatory: Digital literacy, AI skills, and niche domain expertise are essential.
- Benefits matter: UAE companies focus more on total compensation packages than base salary.
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[…] UAE Salary Rise 2026: Moderate Growth Expected as Firms Prioritise Specialist Talent […]
[…] UAE Salary Rise 2026: Moderate Growth Expected as Firms Prioritise Specialist Talent […]