Professionals across the Gulf are seeing higher salaries, with more than half receiving pay increases in 2025, according to the latest GCC Salary Guide released by Hays Middle East.
The report found that 58 percent of professionals received a salary increase in 2025, up from 51 percent a year earlier. However, 60 percent of respondents said their pay still does not match their level of responsibility, highlighting continued pressure on employers to review compensation.
Hiring activity continues
Hiring remains active across the region, with 66 percent of employers increasing headcount in 2025. Only 13 percent said they have no major recruitment plans for 2026.
Demand is strongest for technical and digital specialists, leadership roles, and flexible staffing to support project-based work.
Skills gaps remain
Despite strong hiring, 90 percent of organisations reported skills shortages in 2025. Employers cited low salaries and benefits, high competition for talent, and limited career progression as the main reasons behind the gaps.
Many employers are focusing on improved benefits, career development, and workplace culture to attract and retain skilled professionals.
Nationalisation continues to shape hiring strategies across the Gulf. In the UAE, Emiratisation targets for skilled roles have risen to 10 percent, with 42 percent of companies planning to increase Emirati hiring in 2026.
In Saudi Arabia, 93 percent of employers currently employ Saudi nationals, while 75 percent plan to expand Saudi headcount this year.
AI in the workplace
The guide shows that artificial intelligence is becoming a standard workplace tool, with 66 percent of professionals saying they already use AI regularly. Productivity, creativity, and improved communication were cited as key benefits.
The Hays GCC Salary Guide 2026 covers nearly 400 roles across 11 sectors in the Gulf Cooperation Council. It is based on a survey of more than 1,600 employers and professionals across the Middle East.
Commenting on the findings, Oliver Kowalski, Managing Director at Hays Middle East, said: “Despite ongoing global economic uncertainties, the Gulf region continues to demonstrate resilience and forward momentum. Economic diversification, strategic fiscal reforms, and investment in non-oil sectors have positioned the GCC as a hub of innovation and opportunity. With projected GDP growth of 4.6% in 2026, the region is entering a new phase of transformation; one that is increasingly driven by technology, sustainability, and human capital.”
tanvir@dubainewsweek.com
