The downside of Dubai’s popularity among expats? Stagnant salaries

Expats in Dubai are likely to see more modest pay packages amid rising job competition, with salaries expected to remain flat this year, Bloomberg reports, citing Cooper Fitch’s 2025 salary guide (pdf) and interviews with experts. The post-pandemic boom has faded, and job postings that once attracted 100 applicants now see over 2k vying for a single role — meaning employers no longer need to offer generous perks to attract professionals, according to recruitment experts.

Even UK expats, who have over the years seen big pay rises and other perks to moving to Dubai, are seeing salary margins narrowing between London and Dubai, said Nick Aiyegbusi, an associate director at Robert Walters Middle East specializing in legal recruitment

Beyond the job market, the cost of living has surged. Rent for villas has soared 94% since 2020, according to real estate consultancy JLL, pushing many expats to relocate to Dubai’s outskirts or other emirates. Traffic congestion and long waitlists for top schools are adding to the strain. In response, the government has introduced road projects and is offering installment plans to ease pressure on infrastructure and housing.

Still, nearly half of Cooper Fitch’s survey respondents approved pay increases for new hires in 2024, with some 44% expecting to raise salaries this year.

Plus: Resilient growth of the economy and expansion of sectors like real estate, financial services and tech are expected to continue to open up more jobs in the UAE, with more than half of the surveyed firms planning an increase in headcount this year.