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Home»UAE

Which sectors will have the highest wage increases?

November 1, 2022 UAE No Comments4 Mins Read

Employees in the financial services and legal sectors in the UAE will receive the highest wage increases in 2023with an average increase of 5% and 4.9% respectively, according to recruitment consultancy Robert Half.

The financial services industry includes banking, private equity, venture capital, insurance, investment, and family offices.

The tech industry estimated to see 3 percent wage increase on average, while finance and accounting professionals will receive a 2.5% salary increase and the HR sector is expected to receive a 2% increase, Robert Half said in its 2023 salary guide.

“We are seeing significant demand for investment analysts as new capital comes to market and needs to be deployed,” said Gareth El Mettouri, associate director for the Middle East at Robert Half.

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Watch: some of the stats behind the UAE hiring boom

“We are also seeing a huge demand for financial analysts and FPAs [financial planning and analysis] candidates, treasury candidates and tax professionals. With the incorporation of corporation tax in June next yearthere is a significant demand for tax candidates in the region.

The The UAE job market has seen a strong recovery the coronavirus-induced slowdown, aided by the government’s fiscal and monetary measures.

Seven out of 10 UAE companies plan to hire new employees next yeara September survey by jobs website Bayt.com and market research firm YouGov.

Sixty-three percent of large local businesses and multinationals in the Middle East and North Africa are among those with the highest intention to hire over the next three months, according to the study.

Eighty-six percent of working professionals in the UAE have a positive career prospects for 2023a separate survey last month by Bayt.com and YouGov found.

According to Robert Half, changes to laws, rules and regulations in the UAE are creating “price increases” for certain roles.

With the increase in initial public offerings (IPOs) in the UAE, there is a high demand for corporate lawyers, mergers and acquisitions lawyers and those who can help a company go public, said the consulting firm.

In the UAE’s tech industry, front-end, back-end and full-stack developers, as well as roles in IT security and architecture are in high demand, he added.

It is estimated that compliance managers at large companies will receive the biggest pay rise at 29% next year, followed by compliance managers for SMEs at 15% and internal auditors for SMEs at 11%, according to Robert Half estimates.

“I expect bonuses to be paid next year, but it will vary by sector,” Mr El Mettouri said.

“Oil and gas, fast-moving consumer goods, banking and technology industries should offer good bonuses next year.”

Meanwhile, flexibility remains a key way to attract and retain talent, especially in the tech industry, according to the report.

Many companies in the UAE are hiring fully remote workers, often based in other countries, to learn the skills they need. Providing flexibility expands the pool of skilled talent available to businesses, the research adds.

While 29% of professional services employees in the UAE are happy to work in the office full-time, 78% said flexibility is essential for both retaining and attracting talent, according to a Robert Half survey of of 500 professionals in activity between August 5 and 15.

“We are once again in the midst of a global talent war. The primary objective of employers is talent retention,” Mr. El Mettouri said.

Employers are increasing salaries and offering benefits to attract new employees, according to the consultancy.

The main indirect benefit sought by employees is the flexible and hybrid work organization. In some cases, candidates seem to prefer more work flexibility over higher pay, he said.

“Tech, start-ups and disruptive companies primarily offer flexible working arrangements,” Mr. El Mettouri said.

“It is more difficult to implement in established entities, such as core banking.”

Employees are also asking for college and housing allowances, driven by rising rents, he added.

Updated: 02 November 2022, 04:38

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