UAE jobs: Are salaries dropping due to rising population? A new study answers

According to a new study, the influx of expatriate professionals to the UAE is driving employees' salaries down, making it an employer’s market and creating a surplus of talent.

The average starting salaries for professional services' roles in the country fell 0.7 per cent year-on-year, and more than half of employees plan to look for a new role next year due to the rising cost of living, according to recruitment consultancy Robert Half’s 2025 Salary Guide.

Gareth El Mettouri, director for Middle East at Robert Half, said the UAE has seen an influx of talent in finance, accounting and human resources sectors, where salaries took the biggest hit.

“It is not unusual for a company to receive over 2,000 applicants for an advertised position. For more specialised roles in legal and technology, we typically see fewer candidates apply,” El Mettouri told Khaleej Times in an interview on Monday.

Starting salaries for finance and accounting roles dropped by an average of 2.1 per cent and up to 23 per cent for some corporate accounting roles. While those with accounting skills are still in demand – particularly those with financial planning and tax experience – the immediate availability of expats who come to the UAE without roles is driving down their market value, said Robert Half.

The UAE’s population has grown immensely, especially in the biggest emirates of Abu Dhabi and Dubai, reaching an all-time high due to the influx of investors and professionals into the country.

Dubai’s population stood at 3.798 million on November 4, 2024, an increase of 140,000 in the first 11 months of 2024. In 2023, the emirate's population grew by over 100,000.

Abu Dhabi’s population reached 3.789 million in 2023, an increase of 83 per cent compared to 2011, according to the Abu Dhabi Census 2023.

According to worldometers.info, the UAE’s population reached 11.135 million on November 4, 2024, as compared to 10.642 million in 2023 and 10.242 million in 2022.

However, some roles are seeing an increase in salaries.

According to Robert Half, starting salaries for in-house legal roles have increased by 1.6 per cent as demand for mid-level legal counsel surges, increasing the average starting salary by 15 per cent. Demand is being driven by growing interest from global investment companies in UAE businesses, with many privately owned businesses considering making an initial public offering and requiring experienced legal support to do so.