The UAE labor market has become more competitive than ever, and it is not just employees struggling for the best positions. Companies and HR managers are now racing to attract and sustain the best talents to get that unique edge that places them in the blue ocean. To appeal to the best brains, many corporations now offer appealing employee benefits, focusing on better salaries and remunerations.

As of 2025, many major UAE industries have increased their salaries in strategic positions to attract and sustain employees with great skill sets. This competitive atmosphere now makes salary benchmarking highly important for HR managers. With this insight, they can adequately reward employees aligned with industry standards while building an appealing brand for their partnering businesses and companies.

Salary Benchmarking is the deliberate process of comparing and evaluating talent remunerations and compensation packages in the UAE. The comparison is generally comprehensive, cutting across major industries so HRs and employers understand the standard industry compensation average. That way, they may create competitive remunerations for their talents to keep them from shark competitors and even attract new employees.

This text discusses how salary benchmarking works in the UAE and every important metric an HR manager should consider.

The Importance of Salary Benchmarking in the UAE

Salary benchmarking is beneficial to all UAE businesses for several reasons. Here, we offer the many ways investing in salary benchmarking makes your company better:

 

• • Match the Skill with the Right Price: Salary benchmarking ensures that skilled workers are paid as they should, ensuring maximal retention. It also prevents workers from considering other options. When workers are paid as they should, it promotes employee satisfaction, which prevents them from sourcing for other openings.

• • Complying with the UAE labor law: Salary benchmarking ensures your company complies with UAE labor law regarding fair compensation. Neglect of fair compensation attracts fines and penalties that can hinder your business growth. Salary benchmarking ensures you address the situation before it escalates.

 

• • Marketing Positioning: Benchmarking ensures that you are paying your skilled workers fairly, putting you in the sweet spot.

• • Effective Budgeting: Salary benchmarking ensures you make informed decisions about each worker’s worth. This enables you to pay the appropriate labor cost and know how much is left for other aspects of the business.

Overall, salary benchmarking ensures the business stays updated on the value of their skilled workers and makes informed decisions about their pay. This ensures that your UAE business has a positive working environment. Also, salary benchmarking gives your business a competitive edge by keeping its most skilled workers.

Key Industries to Consider for Salary Benchmarking in the UAE

Salary benchmarking is imperative for businesses to stay ahead in the workplace. Here are the key industries that need to consider salary benchmarking in the UAE:

Oil and Gas

Oil and Gas is a thriving sector in the UAE market. The UAE is one of the largest oil-producing countries, which means it has a booming oil and gas sector. With so much competition in the industry, suitable salary benchmarking is crucial to retaining top talents.

Financial Services

Dubai and Abu Dhabi are emerging as prominent players in the financial industry. Hence, businesses in this sector must retain and attract top talents to remain relevant. Therefore, salary benchmarking is an important part of the framework.

Technology and Telecommunications

UAE technology and telecommunications industries are rapidly advancing. There are needs for new roles and companies with competitive salaries surpass competition. This way, your company can attract skilled labor faster and retain them to increase productivity and stand out.

Healthcare and Life Sciences

The healthcare and life sciences industry is competitive, and healthcare and life sciences professionals are well sought after. Hence, salary benchmarking is important to stay informed about remuneration and prevent your company from losing skilled workers.

Retail and Consumer Goods

Like the industries mentioned above, Retail and Consumer Goods are advancing. More people and investors are showing interest in the industry than ever, leading to a competitive workforce. Salary benchmarking is important to ensure your workers are satisfied and retained.

Hospitality and Tourism

The UAE has thriving tourism. Incredible spectacles attract people worldwide, spotlighting the hospitality and tourism industries. Managing a company in this industry means salary benchmarking is critical. It ensures that your top talents are at their best and are retained. Plus, it also helps attract new talent since the pay is competitive.

Industry	Average Salary	Top Roles and Salaries
Financial Services	$164,417	Director: $ 258,250 Senior Associate: $ 131,000 Risk Analyst: $ 104,000
Oil and Gas	$124,943	Petroleum Engineer: $137,720 Geoscientist: $112,110 Drilling Engineer: $125,000
Technology and Telecommunications	$122,667	Front-End Developer: $ 96,500 Full Stack Developer: $ 111,250 Network Architect: $ 160,250
Healthcare and Life Sciences	$110,027	Medical Scientist: $104,050 Clinical Research Coordinator: $136,000 Biostatistician: $92,030
Retail and Consumer Goods	$75,000	Retail Manager: $65,000 Merchandise Planner: $75,000 Supply Chain Analyst: $85,000
Hospitality and Tourism	$66,000	Hotel Manager: $98,000 Event Coordinator: $55,000 Travel Consultant: $45,000

Factors Influencing Salary Ranges Across Industries

Several factors influence the salary sizes of each industry. It explains why an industry can afford to pay their workers much more than others. For example, a skilled worker in the Health Industry is likely to earn more than someone in tourism. Here are those factors; understanding them is important to grasp salary benchmarking:

Supply and Demand of Skilled Talent

Like any economic element, salaries are subject to supply and demand. The salaries will rise when there is a high demand for a particularly skilled talent and a limited supply. This maxim applies to jobs requiring exhaustive levels of education, like pilots and doctors, to attain competency. Many people run from the excruciating work required, leaving a small pool of competent talents. Hence, their services fetch a higher price tag. Conversely, jobs with high demands but a much higher supply fetch lower salaries, such as carpenters and bricklayers.

Economic and Market Conditions

The economic state and market conditions also dictate the salary range across the industry. Axiomatically, when the economy is thriving, a business can afford to pay more for services. Conversely, a struggling economy will lead to a general salary drop across all industries. For instance, the UAE can afford to pay their workers well because of their economy. On the other hand, Nigerian workers have to settle for less.

Regulatory and Legal Requirements

The government and labor laws also influence salary ranges. Factors such as minimum wages, overtime laws, and other requirements ensure that workers are properly compensated, influencing the salary range. Also, some regulations are specific to certain industries regarding how workers’ salaries should be structured.

Company Size and Organizational Structure

The salary of a skilled worker can depend on the company’s size and organizational structure. Bigger companies often offer higher pay since they generate more revenue. However, smaller companies are less capable and often offer lesser pay to skilled workers when compared to bigger businesses.

Best Practices for Conducting Salary Benchmarking in the UAE

Salary benchmarking requires consistent practices to ensure your business is constantly in the loop of the happenings of the UAE workforce. Here, we explore each practice in-depth and explore what it means to get around salary benchmarking as a business:

Reliable Sources for UAE Salary Data and Insights

You need to be updated on what is happening regarding the salaries of your company’s positions. Leverage reliable and recognized reposts such as the Robert Half Salary Guide to gather salary information according to roles and other factors. This information can direct your decision-making and ensure you pay all your workers appropriately.

Analyzing and Interpreting Salary Benchmarking Results

The importance of salary benchmarking is to make the necessary changes after comparing your workers’ salaries with the market rates. You have to compare and contrast the results and make changes to ensure better worker performance, employee satisfaction, and retention. Your business can also leverage beyond-salary packages. Promoting employee feedback can also illuminate the cracks you have to fill.

Case Studies: Salary Benchmarking Across UAE Industries

Some case studies can provide insights into how salary benchmarking affects various UAE industries. Let’s take a closer look:

Case Study A: Health Industry

A large healthcare project, Prime Healthcare, invested in getting a comprehensive report on benefits and compensations. The study researched over 100 positions to determine the appropriate remuneration for each post. This salary benchmarking enabled the hospital to attract the right kind of talent and also retain the ones it had recruited.

Case Study B: Financial Services

Financial service companies in UAE consult Robert Half’s 2025 Salary Guide to familiarize themselves with the salaries of all the financial positions. There have been accounts of companies that, after doing the research, found out they pay their employees up to 10% less than the average salaries. However, after the comparison, they adjusted their remunerations, which led to better worker satisfaction.

The Future of Salary Benchmarking in the UAE

Benchmarking or comparing salaries is as old as the professional sector, playing a crucial role in establishing competitive remunerations globally. Companies that know how to best harness the practice, especially in the UAE, are often primed to retain and sustain the best employees. The good news is that you and your company can also benefit from salary benchmarking with the help of professional HR organizations like Bayzat. Bayzat is a leading HR company that helps small and big businesses create competitive salary structures that attract and retain ideal talents. The company uses AI-enabled, customized all-in-one software to sort great employees from a pool of thousands and provide them with competitive remunerations. Send a mail or call Bayzat for more inquiries on employing their services for comparable results.

FAQs

What is Salary Benchmarking?

Salary benchmarking is the process of accumulating a company’s data on compensation and comparing it to similar jobs in other companies. It plays a crucial role in retaining and attracting new talents.

What Source Do Employers Use to Benchmark Compensation?

There are several sources employers can use to benchmark: salary surveys, HR publications, and network communities.

What is the Downside of Salary Benchmarking?

It is costly and time-consuming. Also, it requires sourcing information from other industry competitors, which may be time-consuming and capital-intensive. However, with the right professional HR company, like Bayzat, businesses are sure of significantly higher positives than negatives.