Challenges in UAE job market: Staggering wage expectations and a scarcity of qualified candidates pose significant obstacles when recruiting fresh staff
The United Arab Emirates (UAE) and Gulf Cooperation Council (GCC) countries are experiencing robust recruitment activity, with Arabs, Indians, and Filipinos being the most sought-after nationalities by employers. This hiring surge is driven by the need to address critical skill gaps and replace attrition losses [1].
However, the hiring landscape in the region is not without its challenges. Salary expectations and skill shortages are the primary hurdles for employers, particularly when it comes to hiring GCC nationals due to government regulations [1]. The rising cost of living, including higher rents, school fees, and transportation costs, has driven employees to demand substantially higher salaries, creating a gap between what employers are willing to pay and what candidates expect [2]. Around 38% of employers cite salary expectation mismatches as their biggest hiring challenge [1].
To attract and retain talent, employers must strategically adjust compensation packages. Employees in the UAE are expecting an average of 20% salary increases by 2025, and high turnover rates, especially among younger professionals, further complicate the situation [2].
In response to these challenges, employers are adopting evolving practices that emphasize skills-based hiring over formal degrees for many roles, especially those less impacted by AI. This shift focuses recruitment efforts on practical expertise and certifications, while government initiatives support upskilling to address skill gaps over time [5].
Waheed Abbas, the Assistant Editor, covers real estate, aviation, and other business stories that directly affect the lives of UAE consumers. He frequently reports on human interest stories as well.
Skilled candidates in the GCC region can command higher salaries, according to Sharad Sindhwani, business and product head at NaukriGulf. These nationalities bring a unique talent combination to the Gulf, offering local insights, technical depth, and service excellence [3].
Despite these challenges, hiring timelines are becoming shorter in the UAE and Gulf countries, with over half of employers aiming to close open positions within a month [1]. This fast-paced recruitment environment underscores the need for employers to be strategic in their hiring practices and compensation offerings.
[1] Gulf News
[2] Khaleej Times
[3] Arabian Business
[4] Gulf News
[5] Zawya
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