August 21, 2025 | Dubai, UAE: Regarding UAE job market, growing salary expectations and a continuous skill shortage present major hiring obstacles for employers throughout the GCC (Gulf Cooperation Council). According to a recent Naukrigulf poll, recruiters still face the most major obstacle: mismatched salary expectations; nonetheless, the demand for qualified personnel is pushing targeted salary increases in the UAE job market. 

Recruiting Obstacles Are Driven by Salary Expectations in UAE Job Market

The poll shows that 38% of Gulf-wide UAE job market employers list high salary expectations as their main recruiting barrier. Candidates have called for greater compensation packages during negotiations for new positions in response to the rising cost of living, which includes more expensive rent, school fees, travel costs, and consumer items prices.

Naukrigulf noted in its report, “Three obstacles arose the most between employers and great recruits. Salary expectations and skill deficits remain the major obstacles.” Despite small official hiring budgets, employers are under growing pressure to provide competitive remuneration especially in high-demand fields.

Business and product head at Naukrigulf, Sharad Sindhwani, noted that salaries in the UAE are seeing small increases, with the most notable jumps anticipated for positions beset with major skill deficits in the UAE job market. “Cost-of-living concerns drive a trend toward increasing compensation expectations from applicants. Even if recruiting budgets stay under pressure, employers expect to have to pay greater salaries to obtain in-demand people. Particularly for positions needing rare skills, we will probably witness targeted salary increases. Generic jobs, however, could experience little wage growth,” he stated.

Though there are obstacles, the UAE job market is still strong; 94 percent of regional employers intend to engage within the following six months. While corporations keep replacing attrition losses and meet mandated localization quotas, significant investments in infrastructure, real estate, tourism, and technology are driving demand for new talent.

Aggressive hiring timelines are becoming increasingly common too. The survey indicates that only seven percent of employers plan for lengthier timeframes, whereas six percent want to fill open positions within 2–3 months, 35 percent within 1–2 months, and 52 percent within one month. The quick hiring rate reflects the solid corporate confidence all across the region as well as the continuous growth in key sectors.

Sindhwani continued, “The GCC, especially the UAE, is demonstrating sustained business confidence. Minimal layoffs at barely one per cent further show the stability and resilience of the market. Together, expansion and replacement hiring are maintaining strong recruitment activity.”

Regarding chosen nationalities, the UAE job market also shows a distinct trend. Arabs, Indians, and Filipinos remain among the most sought-after employees due to their adaptability, technical skill, and cultural fit inside Gulf businesses. Employers naturally choose these organizations as they make up a major part of the consumer base and workforce of the area.

Matching Localization Initiatives with Salary Expectations

Especially when hiring Gulf citizens, a major factor in the UAE job market is the ongoing challenge to reconcile government localization objectives with compensation expectations. While controlling increasing hiring costs, employers are encouraged to meet these expectations.

Companies are expected to change by providing competitive compensation packages for high-demand positions while still tightly managing expenses for general positions as the area has steady economic expansion. Skilled people with technological, building, and tourism-related experience are expected to see the most significant salary rises over the following few months.

Encouraged by ambitious national development plans and diversification initiatives, the labor market in the UAE has demonstrated amazing resiliency in spite of external economic pressures. The future appears bright for job searchers and businesses ready to adapt to shifting wage patterns since there little reported layoffs and aggressive growth plans under way.

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