The UAE is expected to increase their hiring potential next year, driven by business growth and greater clarity following recent elections in the US and India. According to Robert Half’s 2025 Salary Guide, 63% of UAE business leaders anticipate expanding their workforce in the coming year, with half citing growth as a key reason for hiring more staff.

The past year saw many employers paused their recruitment efforts due to uncertainties surrounding election outcomes. The report highlighted that one-third of business leaders were delaying hiring decisions until these results were known, while 32% are waiting for interest rates to stabilize.

Despite the challenges posed by high inflation and a competitive job market, nearly 67% of business leaders express confidence in their organizations’ growth prospects for 2025. While it is currently easier to find candidates than it was a year ago, many new arrivals lack relevant local experience. Consequently, retaining existing talent remains a priority for businesses.

However, 47% of leaders reported difficulties in finding candidates with the necessary skills, and a significant 65% of employees intend to seek new job opportunities before the end of 2025, largely due to rising living costs. In this context, 34% of workers feel they require higher salaries to meet their financial obligations.

The report indicated that three-quarters of respondents believe negotiating pay increases has become more challenging compared to last year.

The director for the Middle East at Robert Half, Gareth El Mettouri warned that if employers do not address the needs of their current employees, they risk losing valuable talent when market conditions improve.

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El Mettouri also emphasized that while the influx of expatriates may make hiring easier, businesses must remain vigilant about the potential impact on employee satisfaction and productivity. To attract skilled candidates already in the UAE, competitive remuneration will be essential, particularly for roles requiring specific skills like Arabic proficiency or local experience.