UAE salary guide 2022: how much should you be earning in Dubai and Abu Dhabi?
Check out the earning potential for jobseekers in sectors including banking, technology, oil and gas, sales, property, construction, accounting, human resources and office support
The jobs market in the UAE is continuing to recover in 2022 as business confidence and hiring activity return to pre-coronavirus levels, according to recruitment experts as we hit the mid-year mark.
At the beginning of the year, salaries were also expected to rise by an average of 3 per cent to 5 per cent depending on the sector (see slide show above), while bonuses have been predicted to make a comeback this year.
“Salaries certainly have increased year on year and are set to continue on this trajectory for 2022, with a proportionally higher number of salary rises likely to take place this year than in the past three years,” Sarah Dixon, managing director of Hays Middle East told The National in January.
“The most common increase is likely to be an uplift of up to 5 per cent.”
Since the Covid-19 pandemic began in March 2020, the UAE has spent billions of dirhams in economic stimulus measures to support businesses.
Business activity in the UAE’s non-oil private sector improved to its strongest level in about two and a half years in November 2021, activity which was boosted by Expo 2020 Dubai, a rise in tourism and increased spending amid the post-pandemic economic recovery.
The UAE's IHS Markit Purchasing Managers’ Index climbed to 55.9 in November, from 55.7 in October, the highest reading since June 2019. A reading above 50 indicates economic expansion while anything below points to a contraction.
Employment levels also remained steady during the survey period and “further rises in demand and backlogs could support an increase in employment sooner rather than later”, IHS Markit economist David Owen said at the time.
With hiring on the increase, what is the salary and employment outlook for jobseekers this year? Read on to find out.
How much can Emiratis earn in Dubai and Abu Dhabi?
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Emiratisation salary guide 2022
Pay levels expected to increase across Dubai, Abu Dhabi and other emirates
According to the Hays 2022 Salary Guide, which was released at the end of January, roughly 73 per cent of UAE employers expected their salaries in their organisations to increase by up to 5 per cent this year, compared with 37 per cent in 2021.
The trend in previous years has shown that most company-wide pay increases represent a rise of less than 5 per cent but this is unlikely to be sufficient to retain candidates who are looking for a job change for the rest of 2022 based on salary, Ms Dixon says.
However, the "sentiment is very positive in the UAE and surrounding Gulf region", she notes.
“We have seen business confidence and hiring activity increase back to pre-pandemic levels and beyond, with much optimism as we go into 2022.”
In November, a report by Mercer found that employers in the UAE were predicted to go on a hiring spree in 2022 and raise salaries by an average 3.6 per cent as demand for jobs picks up amid the UAE's post-coronavirus economic recovery.
“Signs of growth abound and are evident in the increased hiring activity that we have seen in 2021 and the positive forecast for 2022,” Andrew El Zein, a career department associate for the Mena region at Mercer, said at the time.
“Employers are prioritising hires for in-demand skill sets that will support future business growth. However, the talent pool is still developing, causing somewhat of a talent war.”
Meanwhile, the Cooper Fitch UAE Salary Guide 2022, which was published in December 2021 and polled more than 600 companies in the country, found that 35 per cent of businesses plan to increase salaries by up to 5 per cent this year.
It also found that 4 per cent of companies would offer employees a raise of between 6 per cent to 9 per cent, while 5 per cent will boost wages by 10 per cent or more.
Will bonuses return in 2022?
Of the business leaders surveyed by Cooper Fitch for its salary guide, 74 per cent of companies in the UAE planned to offer bonus schemes in 2022, with 46 per cent saying they would pay one to two months’ gross salary and 21 per cent saying they would reward employees with three to five months' gross salary.
However, not all sectors will be offering bonuses to employees this year, Trefor Murphy, chief executive of Cooper Fitch, says.
“For bonus payouts, all sectors except real estate and the public sector said they will be paying bonuses in 2022.”
Business people on escalators at the Dubai International Finance Centre. Employees in a range of sectors in the UAE can expect an average pay rise of between 3 per cent to 5 per cent in 2022. Sarah Dea / The National
What benefits will jobseekers be offered in 2022?
Companies must offer a competitive benefits package to attract the best talent, according to the Robert Half 2022 salary guide.
“Candidates expectations have changed since the pandemic and they are expecting more beyond salaries and bonuses,” the report says.
“Employers are adjusting benefits and perks to attract and retain the new ‘anywhere’ workforce. Efforts to bolster workplace culture and avoid digital burnout [will] see companies introduce mental health hotlines and remote working initiatives.”
Some of the most common benefits UAE employers are offering jobseekers include flexible and remote working, airline tickets, an education allowance and family visas.
However, since the outbreak of Covid-19, job candidates are increasingly requesting to work from home at least two days a week, as well as asking for flexible hours and training opportunities, the Robert Half report says.
“Businesses are adding to their benefits to retain and attract staff,” Gareth El Mettouri, Robert Half’s associate director of the Middle East, says in the salary report.
“Many local businesses are keen to get back to the office, but with candidates demanding flexible working, they may lose out on the best talent to multinationals.”
For bonus payouts, all sectors except real estate and the public sector said they will be paying bonuses in 2022
Trefor Murphy, chief executive of Cooper Fitch
However, child education allowances are a significant “pull factor” for professionals in the UAE when considering a new role, Ms Dixon of Hays Middle East says.
“With so many expats uprooting family and relocating to the region from home countries for jobs, child education fees represents a significant proportion of their incomes and candidates will favour an employer that offers to cover these,” she says.
“This is a challenge to organisations as school fees are relatively expensive in the UAE and from our experiences, child education allowances are generally only offered to senior-level candidates. They also vary by way in which they are offered – some employers provide an annual lump sum, while others cover up to two children, or are capped at a certain level of spend.”
What will be the most resilient sectors in 2022?
The most resilient sectors this year will include technology, human resources, health care and life sciences, while there will be accelerated demand for skilled workers in digital and data, and project management, recruitment specialist Michael Page says in its UAE Salary Guide & Hiring Insights 2022 report.
Meanwhile, there is still strong demand for talent in some of the “usual suspect sectors” such as consulting, advisory and recruitment, Mr Murphy of Cooper Fitch says.
“There is also a large base of activity around digital, technology and artificial intelligence, with an overall recovery in all UAE markets recovering to pre-Covid-19 levels,” he says.
“In terms of headcount and salaries in the UAE for 2022 based on our data, the sectors most likely to increase these are advisory, real estate, sales and marketing, technology and strategy.”
Challenges companies face when hiring in 2022
The Covid-19 pandemic has been a catalyst for long-term change in the workplace, with many companies now allowing employees to either work from home full-time or for one to three days a week.
However, maintaining employee motivation and engagement, and integrating new hires remotely are the main challenges employers are facing in 2022.
Many companies have also had to invest significant amounts of their budgets into technology to enable remote working, Ms Dixon says.
“With competition among employers high, attraction and retention of top talent is a big challenge for organisations,” she says.
“Salary remains the main motivator for changing jobs while career development is the number one reason why employees will stay with an employer.
“On top of these, we have seen professionals’ views on remote working change since the pandemic, with the majority expecting some form of working-from-home options to be offered as part of a standard employment contract going forward.”
What are the highest paid jobs in the UAE?
Banking: head of consumer banking – Dh92,000-Dh98,000
Legal: partner (5+ years) – Dh103,000-Dh227,000
Oil and gas: operations manager – Dh40,000-Dh50,000
Public sector: undersecretary – Dh128,800-Dh180,000
Technology: chief information officer – Dh70,000-Dh130,000
HR and office support: chief shared services officer – Dh103,000-Dh144,000
Accounting and finance: group/regional – CFO Dh100,000-Dh200,000
Property and construction: chief development officer – Dh124,000-Dh247,000; executive director of sales Dh77,000-Dh113,000
Secretary and office support: personal assistant – Dh20,000-27,000
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
UAE: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
Zimbabwe: Peter Moor (captain), Solomon Mire, Brian Chari, Regis Chakabva, Sean Williams, Timycen Maruma, Sikandar Raza, Donald Tiripano, Kyle Jarvis, Tendai Chatara, Chris Mpofu, Craig Ervine, Brandon Mavuta, Ainsley Ndlovu, Tony Munyonga, Elton Chigumbura
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
The specs
Engine: 3.9-litre twin-turbo V8 Power: 620hp from 5,750-7,500rpm Torque: 760Nm from 3,000-5,750rpm Transmission: Eight-speed dual-clutch auto On sale: Now Price: From Dh1.05 million ($286,000)
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
