Introduction

The Emirates’ economy is growing rapidly thanks to the impressive recovery rates of the key segments that underpin it. Our team sees 2023 as a year in which this momentum will continue to build. The consulting sector, for example, has established itself as a high economic performer for the UAE, and Dubai remains the GCC hub for this market. As a major employer within this space, the emirate looks likely to further cement its status as a leader for tax, legal, strategy and technology consulting during 2023.

The third quarter of 2022 witnessed a 3% boost in hiring activity within the UAE. This trend looks set to continue into the next year, with the majority of companies in the Emirates planning to hire new employees during 2023.

In terms of salary predictions for the coming year, we expect notable levels of movement within the UAE. Based on the responses used to compile this guide, our team predicts that wages in the Emirates will increase by just under 2% in 2023.

Bonus Outlook

This year, Cooper Fitch asked whether respondents expected to pay annual bonuses based on their organisations’ financial performance in 2022. Almost three-quarters of those surveyed reported their intention to issue annual bonuses, compared to just 26% that had no such plans. This figure remains the same when compared to our 2021 data.

In terms of the anticipated payouts, the largest proportion of respondents that intend to issue bonuses (36%) expected the amount to be one month’s gross salary. One-fifth (20%) of those surveyed plan to pay two months’ gross salary, 10% said three months, 3% said four months, and 1% said five months. Employees working for 4% of the companies surveyed this year can look forward to annual bonuses amounting to a generous six months’ gross salary. The sectors represented in this category include banking, financial services, investment management and consulting.

Of the 26% of companies that do not intend to pay bonuses, the highest proportion hailed from the logistics and supply chain sector. This is surprising given that 2022 was a year of recovery with a return to pre-pandemic levels. Encouragingly, despite an absence of bonuses in certain quarters, the sector does intend to increase salaries in 2023, according to our survey’s data. What’s more, the UAE’s logistics market is expected to grow by $11.87 billion by 2026, according to industry research released by Technavio in November 2022. Companies that deliver bonuses in the short-term will be more likely to retain talent as competition in the market heats up.

To ensure the highest possible accuracy of this year’s bonus-related information, Cooper Fitch surveyed seniorlevel representatives from businesses across multiple sectors. Moreover, the largest proportion of respondents (40%) worked in the field of HR, meaning they are ideally placed to comment on expected payouts. Other segments represented included directors (21%), managers (19%) and C-suite professionals (17%).