Copper Fitch expected salaries to remain broadly stable in most sectors in the UAE.
It stated in the UAE Salary Manual for 2020 that salaries in the UAE will remain broadly fixed in most sectors.
However, the report distinguishes specific industries preparing to experience the highest increase in market salaries for 2020.
According to the latest payroll guide, salaries in the strategic services sector are expected to increase by five percent, while salaries in the investment management, manufacturing, technology and telecommunications sectors will see a modest increase of about 2 percent.
The founder and CEO of Copper Fitch, Trevor Murphy, expressed optimism that despite the marginal increases in salaries, development projects in the UAE will significantly boost the labor market and create a new revenue stream in the coming months.
However, employee retention coupled with intense public sector competition, upcoming technological changes and neighboring countries like Saudi Arabia are some of the main challenges that organizations in the UAE will face.
Despite the increase in marginal salaries, the ongoing infrastructure projects amounting to millions of dollars, and real estate, tourism and leisure projects in the United Arab Emirates constitute a strong boost for the labor market.
However, these organizations still have difficulty retaining highly skilled employees, some of whom are increasingly joining the public sector or looking for better opportunities in neighboring countries.
For his part, the Saudi salary index expects an average increase of three percent in all sectors.
This is mainly due to the profound changes taking place in the Kingdom, which keep wages steady or rise in most industries.
The notable improvements in the market salary increase for 2020 include the strategic services sector, where salaries are expected to grow by six per cent, closely followed by investment, sales and marketing management by five per cent, and accounting and financing by four per cent.
The salaries of banking and financial services, legal and investment administration, and the public sector are also expected to increase by three percent.