Including energy, financial services, technology, consumer goods, life sciences, engineering, construction, real estate, manufacturing, retail, and services, Mercer's annual Total Remuneration Survey collected data from more than 700 organizations across varied sectors.

At 4.5 percent, the consumer goods industry is expected to show the biggest pay rise among them. The industries of life sciences and technology respectively project rises of 4.2% and 4.1% respectively. Industries include financial services and energy, meantime, match the market average of 4 percent. Significantly, companies in many different fields revealed intentions to apply consistent pay rises for staff members at all levels.

"It is very encouraging to see a large segment of UAE employers planning to increase base salaries in 2025, reflecting a resilient and optimistic economic outlook," said Mercer's UAE Career Products Leader, Andrew El Zein, Apart from raising pay, HR managers should check their housing allowances considering the national growing property prices in order to stay competitive.

The poll also explored how digital transformation, automation, and Generative artificial intelligence are altering the workforce, With 74 percent of its citizens utilizing artificial intelligence at least once a week, the UAE has the greatest AI adoption rate among Middle Eastern countries, Furthermore, according to Mercer's Global Talent Trends study, UAE CEOs see artificial intelligence as a major force behind upcoming expansion.

Mercer's Middle East Career Products Leader, Ted Raffoul, underlined the transforming power of artificial intelligence and automation in reshining the skills needed for the workforce of tomorrow: "Generative AI and automation are rapidly changing the job landscape, shifting the skills our workforce needs and placing additional pressure on salaries. Digital literacy and open change-oriented cultures are cultivated in great part by business leaders, therefore employees at all levels can be ready for the future of employment.

As businesses try to draw and keep personnel ready to negotiate the changing employment market, these technical developments are impacting hiring policies and compensation practices. Professionals skilled in artificial intelligence, automation, and digital transformation are projected to be in great demand, hence driving increasing pressure on pay in these disciplines.

Based on their combined focus on workforce expansion and pay improvements, organizations ready for 2025 offer a positive economic future for the UAE. The way pay increases line-wise across all employee levels highlights even more employers' will to promote fair development. Furthermore, the integration of modern technologies like artificial intelligence is shaping a workforce ready for the future, therefore ensuring UAE competitiveness as a hub for talent and innovation.

UAE survey predicts salary increases across all industries in 2025

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