Let's look at the situation objectively, exploring the dynamics of costs and compensation in the UAE today and understanding the market forces at play.

The Squeeze: Rising Costs Meet Salary Realities

Two key trends are contributing to this feeling of financial pressure:

1. The Rent Reality: There's no denying that rents saw significant increases post-pandemic. Reports, like those highlighted by National News referencing ValueStrat data, showed hikes of up to 13% for apartments and 22.5% for Offices in the year 2024. While more recent data (early 2025) suggests the rate of increase is slowing down or stabilizing in certain communities as more properties come online, the cumulative effect of past hikes means housing costs remain substantially higher for many compared to a few years ago. Prime locations often continue to command premium rents due to sustained demand. The primary driver identified in reports is often strong demand fueled by population growth, rather than simply landlord decisions. 

1. The Salary Scene: While the UAE job market remains active, salary increases aren't always matching the sharp rise in living costs for everyone. Insights from salary guides like Robert Half's suggest that while salary negotiation is common, securing significant increases might be challenging (only 30% were successful in a survey). Increases often appear targeted towards attracting or retaining individuals with specific, in-demand skills (especially in tech, finance, and other specialized fields) or countering offers in a competitive talent market. 

   The Impact: This combination naturally puts pressure on household budgets, forcing many to re-evaluate their expenses and financial strategies

    

Weathering the Storm & Finding Solutions Now

Acknowledging this pressure is important. While market forces take time to balance, there are proactive steps residents can consider:

1. Explore Dual Employment (Legally): Did you know UAE Labour Law allows individuals to work for more than one employer simultaneously? By obtaining the correct part-time work permit from the Ministry of Human Resources and Emiratization (MoHRE), those on work or family visas can potentially take on a second job to supplement their income.

   Important Note: It's crucial to comply with all regulations. This typically involves getting the MoHRE permit, and if you are on a full-time contract, you likely need to check your contract, understand your primary employer's policy, and may need their consent (NOC) before taking up additional work.

2. Want to understand the process, requirements, and potential benefits in detail? Follow our Instagram channel! We'll be posting a video explaining everything you need to know about legally working for two employers in the UAE.

3. Know Your Market Value: Are your salary expectations aligned with the current market for your specific role, experience, and industry? Use reliable data to benchmark your worth.  

Check out the Naukrigulf Salary Tool – it’s free and can give you valuable insights into current salary ranges.

The Long View: Future Opportunities Beckon

Despite the current squeeze, the UAE's long-term economic trajectory remains strong and ambitious. National strategies like UAE Centennial 2071, Dubai's D33, and Abu Dhabi's Vision 2030 are actively driving diversification and growth.

1. Job Creation Ahead: These visions translate into concrete plans for development, innovation, and infrastructure, which are expected to create thousands of new jobs over the next five years. Recent indicators, like increased hiring activity in the non-oil private sector, already point towards this continued expansion. 
2. The Key is Relevance: Accessing these future opportunities hinges on staying relevant. 

   This means:

   Upskilling & Reskilling: Focusing on skills demanded by emerging industries – Artificial Intelligence, Data Science, Renewable Energy, Advanced Technology, Digital Marketing, specialized Healthcare, Logistics, and more

   Targeting In-Demand Roles: Researching which specific job roles are projected to grow within these future-focused sectors

Navigate Today, Prepare for Tomorrow 

Yes, managing the rising cost of living against current salary trends is a genuine challenge for many in the UAE right now. However, understanding the market dynamics, exploring legally permissible options like dual employment, and knowing your worth are key steps to navigate the present.

Crucially, keep an eye on the future. The UAE is actively building a diversified, knowledge-based economy brimming with potential. By investing in your skills and aligning with the nation's growth sectors, you can position yourself to benefit from the opportunities that lie ahead. Stay informed, stay proactive, and stay hopeful.

Find your next opportunity and navigate the UAE job market with Naukrigulf.com, the #1 job site in the Gulf.