Related: 60% of UAE employers plan to hire more workers in 2021
The Covid-19 pandemic caused major disruptions to the global jobs market last year, but sentiments towards UAE salaries for 2021 look promising.
A new report by Hays recruitment agency showed that 44 per cent of respondents in the UAE expect a pay rise in the next 12 months.
Just over half are confident their pay package will remain the same, while only two per cent foresee a cut coming their way.
The results are surprising, considering the global salary cuts and redundancies in 2020, due to strict lockdowns.
However, recruitment experts are hopeful the market is set for a rebound – even if a little slower than normal, due to the ongoing impact of Covid-19.
“We do not expect the pandemic to negatively affect salaries in 2021,” said Samantha Wright, senior recruitment consultant with Hays.
“This view is reflected by professionals working in the UAE, with 53 per cent expecting their salary to remain the same, year-on-year in 2021, 44 expecting an increase and two per cent expecting a decrease.”
Going forward, Ms Wright said IT specialists with digital technology and data-driven skill-sets will be the “most in-demand professionals in the market in 2021”.
This is due to the UAE government’s ongoing focus on digitisation and automation.
Positions that invite a big salary package include IT directors and managers, as well as digital marketing managers.
In late 2020, the government embarked on one of the biggest overhauls of the legal system in years, with changes to family law and other areas affecting people's daily lives announced.
The laws reflect progressive measures to improve living standards for both nationals and residents in the UAE.
As a result, the legal sector is likely to be a part of the economy's rebound efforts, with more opportunities for legal advisers, legal secretaries and paralegals likely this year.
As part of the Hays 2021 Emiratisation Salary and Employment report, experts have mapped out a salary guide that Emiratis can use to benchmark their salary packages against others in the region.
The salaries have been broken down into three categories – the private sector and the public sector in Dubai and Abu Dhabi.
The report clearly shows that public sector organisations in Abu Dhabi pay the highest salaries to UAE nationals – sometimes more than 40 per cent higher than private organisations.
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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.
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Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
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Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
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Dhadak 2
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Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
