The jobs market in the UAE will continue to strengthen in 2023, driven by strong market confidence and foreign direct investment as companies expand their international presence in the Emirates, according to a new report by recruitment specialist Michael Page.
After an unpredictable 2022, strong market confidence has led to consistent recruitment activity and industry growth, Michael Page said in its 2023 UAE Salary Guide and Hiring Insights report on Monday.
“Based on market confidence and therefore more aggressive growth and diversification plans, organisations shifted up a gear and their appetite to invest in attracting top talent increased significantly,” Jon Ede, regional director of Michael Page UAE, said.
Watch: Some of the stats behind the UAE's hiring boom
“We have also seen a significant return to foreign investments with businesses looking to expand their international footprint into the UAE.”
The UAE jobs market has made a strong recovery from the coronavirus-induced slowdown, helped by the government’s fiscal and monetary measures.
The UAE, the Arab world’s second-largest economy, has undertaken several economic, legal and social reforms over the years to strengthen its business environment, increase foreign direct investment, attract skilled workers with new visas and provide incentives to companies to set up or expand their operations.
Earlier this month, recruitment consultancy Robert Half said employees in the UAE’s financial services and legal sectors will receive the highest salary increases in 2023, with an average rise of 5 per cent and 4.9 per cent, respectively.
This is followed by the technology industry, which is expected to record a 3 per cent salary increase on average, while finance and accounting professionals will receive a 2.5 per cent wage rise and the HR sector is set for a 2 per cent increase, Robert Half said in its 2023 Salary Guide.
A separate survey conducted by Bayt.com and YouGov in October found that 86 per cent of working professionals in the UAE have a positive career outlook for 2023.
However, the concept of remote working continues to be a long-term legacy of the Covid pandemic, said the Michael Page report, which also surveyed 2,000 employees in the UAE.
About 66 per cent of respondents said they are looking for positions with an element of working from home integrated into their role, it said.
It is important for companies in the UAE to learn to embrace a hybrid work model as it will prove to be key in attracting and safeguarding employees, it added.
“The most popular arrangement is three days at the office, two days at home, [which is] preferred by 36 per cent of respondents, Michael Page said.
“Twenty-seven per cent prefer working from home permanently, while 21 per cent like the idea of spending just one day working from home.”
Office-based teams may also benefit from greater employee engagement, with 41 per cent of respondents emphasising the importance of face-to-face meetings and 28 per cent saying they want to maintain social links and enjoy relaxing moments with colleagues, Michael Page said.
Meanwhile, 79 per cent of respondents said key topics pertaining to social and corporate governance were an important factor when selecting their dream job.
When asked to identify the most important ESG values, 96 per cent chose human rights responsibility, while environmental and economic responsibility were both highlighted by 84 per cent of respondents.
The study also found that 60 per cent of those polled would consider returning to their former company, Michael Page said.
Top 15 companies to work for in the UAE, according to LinkedIn — in pictures
About 57 per cent of people said they were unaware of company return programmes, leading to the conclusion that companies need to better promote them and look at rehiring as part of their recruiting strategy, it added.
Although unavoidable outside factors may threaten to influence industry behaviours, all signs of growth and resilience seem to be pointing in the right direction for the UAE, Mr Ede said.
“A complex global economic backdrop makes it impossible for anyone to predict what lies ahead for 2023 — however, based on current demand, positivity and local market confidence, the UAE appears to be well positioned for growth and resilience,” he said.
Brief scores:
Manchester City 3
Bernardo Silva 16', Sterling 57', Gundogan 79'
Bournemouth 1
Wilson 44'
Man of the match: Leroy Sane (Manchester City)
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
The biog
Favourite colour: Brown
Favourite Movie: Resident Evil
Hobbies: Painting, Cooking, Imitating Voices
Favourite food: Pizza
Trivia: Was the voice of three characters in the Emirati animation, Shaabiyat Al Cartoon
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
The Details
Kabir Singh
Produced by: Cinestaan Studios, T-Series
Directed by: Sandeep Reddy Vanga
Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa
Rating: 2.5/5
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Honeymoonish
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- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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
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