Companies in the UAE are becoming increasingly creative with their incentives to attract top talent in a competitive job market, recruiters say.
Employers in the Emirates recognise a good paycheque is not always enough to retain talent, so they are adding incentives to make jobs more appealing, says Pedro Lacerda, country head of UAE at recruitment agency Tasc Group.
S Ahmad, who works for a bank in the UAE, is currently entitled to zero per cent interest on mortgages, car loans and personal loans up to a certain limit, depending on the job grade. She also receives an education allowance, family medical insurance and an annual bonus from her employer.
An education allowance is very important these days, she says. “If I plan to move jobs, I'd ideally demand the equivalent value of my perks added to my monthly salary on top of a raise. The perks contribute to around 25 per cent of my total takeaway salary,” she adds.
Hiring activity in the UAE has been rising – it increased by 4 per cent in the second quarter, driven by the introduction of a digital work permit system and high employer confidence, says a report by Cooper Fitch’s Gulf Employment Index.
But while the UAE’s attractive lifestyle and tax-free salaries continue to draw skilled professionals from around the world, employee expectations are also rapidly changing.
Genie Recruitment
Up to 58 per cent of UAE employees said they are “actively looking for a new job”, according to Marsh-Mercer’s 2025 Health on Demand report in May, which polled more than 18,000 employees across 17 markets, including the UAE.
A separate report from recruitment consultancy Michael Page in May showed that despite economic uncertainty, 77 per cent of UAE professionals are “actively exploring” new job opportunities, compared to 65 per cent in 2024.
The most sought-after incentives among UAE employees are flexible work arrangements, professional growth and development, comprehensive insurance plans, financial wellness programmes and mental health support. Some employees also demand parking and gym memberships as incentives.
Signing bonuses and relocation packages are becoming more common, especially for professionals with in-demand skill sets in fields such as tech, finance, engineering and artificial intelligence, says Nicki Wilson, owner and managing director of Genie Recruitment, a Dubai-based consultancy focused on the consumer industry.
Companies are even offering rare “golden handshakes” that include a cash signing bonus, she adds.
However, employers are facing challenges when it comes to finding talent with the right skills to fill specialised roles, says Mr Lacerda.
“If we look at the UAE labour market currently, there’s a strong demand for skilled professionals across many industries, which provides workers with numerous opportunities to secure good jobs and negotiate attractive benefits,” he says.
“Many companies are expanding and actively hiring to keep up with growth and new business areas, so employees have some leverage in choosing where they want to work.”
Flexibility and wellness
Companies are offering hybrid working arrangements and more flexibility, a key factor for many candidates when they think about joining a new company, Ms Wilson explains.
Mr Lacerda says flexible work options could mean working from home on some days or even working remotely from another country during the summer, helping employees better balance their work and personal life.
Progressive parental leave policies are also setting some employers apart, Ms Wilson says. Beyond the standard UAE allowance, companies are offering extended maternity leave, sometimes up to a year, or phased returns to work.
Flexibility around parenting schedules and more support is also something that can entice candidates thinking about their future or their current family set-up, she says.
Employee wellness has also become a core part of talent strategy. Employers are offering mental health support, gym memberships, wellness days, coaching and even subsidised or paid therapy. In some cases, companies encourage participation in wellness retreats or designated time off to prevent burnout, Ms Wilson says.
“To foster culture and team cohesion, some start-ups and scale-ups are offering fully funded team retreats and workcations. These group trips often blend strategy sessions with leisure, strengthening internal bonds and increasing retention,” she adds.
Mr Lacerda points out that a strong push for inclusive and diverse workplaces that make people feel valued and respected keeps employees happier, more committed and “adds up to more than just pay”.
Ankitha Rajendran, a freelance marketing strategist in the UAE, says employers must offer genuine opportunities for growth and thoughtful perks like flexible hours, the ability to disconnect after work and wellness benefits that make a real difference.
“A pizza party once a month means nothing if you don't genuinely offer a better place for people to have mental peace and perform at their best,” she says. “Work-life balance cannot be a buzzword any more. That is what matters to many of us.”
Watch: UAE Salary Guide: Why expat packages are not what they used to be
Golden visas, schooling, career growth
The UAE’s long-term residency schemes are also a major draw, Ms Wilson says.
Companies are increasingly supporting or fully sponsoring golden visa applications for eligible professionals. The appeal of family sponsorship and freedom from local partnership requirements is substantial, she explains.
Schooling and educational benefits are another major incentive, particularly for families relocating to the UAE.
Other incentives are funding professional development through executive courses, certifications or online learning platforms.
Mr Lacerda says career growth opportunities have become a key sweetener, as companies invest heavily in training and mentorship, enabling employees to develop new skills and grow in the company. Advancement and growth are strong motivators for employee retention, he adds.
Public sector entities and companies that aim to attract Emiratis often include tailored career development programmes as key benefits, alongside support for cultural and religious needs, such as flexible leave during Ramadan, Mr Lacerda points out.
Ms Wilson says: “We saw more bonuses being offered for roles outside of sales, too. I think this is the best option as it unites teams to achieve certain goals set for the company.”
Some businesses also provide long-term incentives, Mr Lacerda says, such as stock options or profit-sharing plans, rewarding employees who stay and contribute to the company’s success over time, thereby promoting loyalty.
Pankaj Suresh, growth and marketing lead at Alaan, an AI-powered expense management platform in the UAE, values equity (or employee stock ownership plan) in the company so that he can grow with the firm and “feel like an owner rather than just a cog in the wheel”.
“I left a stable job at the Boston Consulting Group to join an early-stage start-up that did not pay an extravagant salary [compared to what a consulting firm would pay]. However, the company offered great equity to everyone,” he says.
“The best part? The company has grown significantly since I first joined, and my ESOP value has grown almost five times.”
