Salary Guide: Into 2024
Moving into 2024, it does appear that areas of global and regional instabilities continue to be a theme, impacting various market conditions. Until quite recently, it looked like inflationary pressures were under control however, the recent Red Sea crisis shall place a renewed focus on price rises once more. The events, that have played-out in Gaza since October, have proven both shocking and destabilising for the Middle East and with so many “moving parts” it’s unclear where the conflict is headed and what the broader and entire ramifications are likely to be. The UAE has continued a leading role in calling for peaceful outcomes and latterly, via the country’s presence on the UN Council, has facilitated ongoing efforts to deliver a cessation in Gaza whilst also offering continued mediation within the Ukraine crisis.
Over the last couple of years, the UAE has demonstrated a skilful, diplomatic and sensible approach to regional and global trends and/or conflicts. The country is linked at all levels to act as a leading regional player, whom is able to navigate and both economic and political situations at a global level, adding a view that genuinely reflects its cosmopolitan and open philosophy. The recent membership to the BRICS and attendance at the G20 hosted in India, is further testament to how the UAE is respectfully viewed at a global level as a valued and trusted partner member. During this G20 summit, the UAE President, Sheikh Mohammed bin Zayed Al Nayhan, was seen at the forefront of “The India-Middle East-Europe Economic Corridor” announcement, representing both an infrastructure marvel and a geo-political accolade.
These considerations and factors, are in many ways, what continues to keep the UAE as the leading market for regional business activity, tourism and trade. There is no doubt that any “safe haven” status continues to benefit the UAE and 2024 is likely to see the continued inflow of foreign direct investment and business setups with access to deep and broad talent pools, reliable commercial infrastructure and tax competitiveness that the country has to offer.
Strong population growth has been another indicator in the UAE market during 2023. The influx of commercially-minded people and qualified professionals has continued at a flurry, as people look to reap the work-life balance and opportunity that the Emirates is recognised for and is now the envy of many. The natural correlation on the back of this trend, would be to cite a booming and inflationary job market However, the trend across 2023 and into 2024 has shown that the supply and demand dynamic continues to play a decisive part. Linked to population growth, the new supply of talent is ever apparent in the UAE recruitment and this latterly has probably kept a lid on excessive and ubiquitous salary rises. As apparent throughout our survey, only small increases (3% to 4%) are seen across the board.
As global markets appear to “free up” after the shocks and pressures seen during most of 2023 (monetary and fiscal related) combined with the realisation that post-Covid structures and policies are set, we believe that 2024 will see a strong continuation of recruitment activity, whilst certain sectors will see a healthy rebound on the back of a lower baseline in 2023.
As always, the UAE will continue to thrive, evolve and attract the need for jobs and talent. At Charterhouse, entering our 20th year in UAE, we look forward to contributing further across our recruitment specialisations.