UAE salaries expected to rise 4.1% in 2026

Regionally, hike is led by Saudi Arabia at 4.6%, followed by Qatar, Oman at 4.3%

- BY DHANUSHA GOKULAN

Employees in the UAE can expect their salaries to increase by around 4.1 per cent in 2026, according to a new forecast from the global consulting firm Korn Ferry.

This is a slight drop from the 4.2 per cent raise given in 2025 but still shows that companies are competing to offer better pay amid economic growth and rising living costs, according to its UAE salary forecast 2026.

Still, this is slightly lower than the 4.2 per cent increase seen in 2025, but it reflects a “competitive market amid economic growth and inflation pressures”.

Labour market tightening

Employers across sectors are now reshaping their compensation strategies to attract and retain talent in a tightening labour market, which is the need of the hour given the rapid influx of people moving to the UAE.

Dubai’s population recently hit a whopping 4 million — the highest ever, while the UAE’S population hit 11.44 million this year, according to Worldometer.