Average Salary and Wage in UAE

With its rich resources, UAE is a highly attractive location for workers and employers alike and a major draw for investors. For those considering a move to this country either to work or open a business, it’s important to understand the structure of pay and average wages. 

You also need to be aware of the influencing factors on remuneration such as location, industry and government policies. In this strategic location, with its tax advantages and diversified economy, there are ample opportunities for those looking for their next career move or business opportunity.

Understanding the Concept of Average Salary and Wage

An average salary is the mean of a specific set of values. This involves adding all the salary values together and then dividing them by the number of values in the set. 

For example, ten salary amounts added together and then divided by ten gives you the average salary of that data set. However, the presence of extreme high or low values can skew the result. 

Taking the median salary often gives a truer result. The median means the middle value. The salary values are arranged in ascending order and the median is the one in the middle of the data set. 

Now that you understand how an average and median salary are calculated you also need to know the difference between gross and net pay. 

Gross pay relates to the pre-tax and pre-social insurance contributions amount of remuneration. It is the higher figure on your pay slip. 

Net pay is the amount that is left after these deductions and is noted on your pay slip as such, usually in bold to differentiate it. This is the amount that will be deposited into your bank account. 

Gross vs Net Income: What Do They Mean?

When discussing or negotiating wages this distinction between gross and net pay is very important to understand. This is particularly important when considering a move to the UAE which does not levy income tax on an individual’s earnings.

Due to the royalties received from the state owned oil companies, the UAE has no need to tax workers’ income and instead uses the funds from the oil revenues to fund the government. 

This is one of the reasons why the UAE is such a business friendly location. However, there are taxes on corporations, value added tax on goods and services at 5% as well as excise duties.

Factors That Affect Salaries in UAE

There are multiple influencing factors on the level of salaries in the UAE. 

The industry in which you work is one of the major contributing factors in the level of salary in UAE. 

Leading industries include energy, information technology, finance and banking, transport, construction, manufacturing and research and development. Tourism and agriculture are also important employers of international workers. 

Your level of education will impact how much you earn in the United Arab Emirates. The higher your qualifications, the more leverage you have to negotiate your salary. 

Experience is one of the most significant factors when determining salary in the UAE. For example, an accountant in a large company can expect to earn 128555 AED (USD$35,000) with limited experience. This can rise to 207525 AED (USD$56,500) with more experience rising to 253438 AED (USD$69,000) with specialised qualifications. 

Location plays a major role in the salary paid for various professions and Abu Dhabi, is where most of the highest wages are found. However, the capital also has one of the highest cost of living rates in the Emirates. The average wage in UAE rural areas is much lower than the cities.

High-Paying Industries in UAE

As a resource rich country, it’s not surprising that some of the highest paid jobs are in energy. However, as the world moves away from using oil, UAE is seeking to diversify more into tourism, logistics, commerce and finance. 

One of the highest paying roles is CEO which can attract an average salary in UAE of 900,000 AED (USD$245,029). Banking is a high salary sector with a senior bank director earning an average of 700,000 AED (USD$190,578). 

The country is investing in new technology such as AI and cybersecurity with a cybersecurity engineer earning an average salary of 354,758 AED (USD$96,584). 

Impact of Minimum Wage Policies

There is currently no minimum wage policy in the United Arab Emirates. This can make it a bit difficult when you want to set up a business in the country. However, there are regional guidelines and frameworks for helping employers to determine an appropriate minimum wage. 

As there is no enforceable requirement for employers to pay a legal minimum wage, there is little regulation about wages conditions. Having said that, there are some guidelines from the UAE Ministry of Human Resources and Emiratisation (MoHRE) regarding fair compensation for workers to cover basic needs. 

The UAE government has rules about late or non-payment of wages including penalties for employers. There is also a Wage Protection System to safeguard employees and ensure payment of remuneration through registered financial institution.

Current Average Salary Statistics in UAE (2025)

With such a diverse economy, it’s hard to pinpoint the average salary in UAE and the lack of a minimum wage doesn’t help. The average wage varies considerably according to industry, region and job role. 

However, the most common and recurring salary figures give an average gross monthly figure of 14,300 AED or 171,600 AED per annum. 

Industry

The decision by OPEC countries to reduce oil production did impact UAE’s economic growth in 2023. However, its non-oil sectors continue to perform well particularly real estate and salaries increased by an average of 5% across the economy. 

Region

Abu Dhabi and Dubai are the most prominent emirates for high salaries and both have a diverse range of lucrative industries to attract top talent. Average salaries in both emirates are approximately 15,500 AED per month. 

Job role

Vacancies in cybersecurity, AI, business analysis, fintech and digitisations are likely to dominate in 2025 with these sectors growing robustly. Skills shortages in the country in these areas are likely to attract higher salaries and foreign workers. 

Comparison of UAE’s Average Wages to Global Standards

The salaries in UAE are some of the highest in the Middle East, although the country does have a high cost of living. In comparison to countries such as the UK and US, the average salary is on a par but these countries have a more robust compensation system as employees pay income tax unlike in the UAE. 

Average salaries are approximately $64,000 in the US and £37000 in the UK. The UAE average salary of 171,600 AED equates to $46,700 and £38,000 respectively.

How to Negotiate a Competitive Salary in UAE

When negotiating salary in UAE you should do so with knowledge of the market value of your role as well confidence in your own abilities, qualifications and experience.  

Be culturally sensitive, never resorting to an aggressive approach. Similarly, maintain patience and good manners. 

If the salary itself is non-negotiable, consider other compensation benefits such as housing, health insurance, extended holiday allowance or travel expenses. 

Be open to compromise and maintain a positive attitude with your potential employer, but know the worth your skill set brings to the table. 

Conclusion

Understanding what the average wage in UAE entails and how pay is structured will help you make the right career decisions moving forward. Differentiating between gross and net pay also helps you budget properly and choose the right role.

When moving abroad for work, it’s important to be aware of the varying influences on jobs, pay and career progression as well as how they compare to other countries. 

With our comprehensive guide, you’re now ready to embrace the UAE and all it has to offer. Make sure you take QuickBooks with you to help manage your finances with ease and leave you more time to enjoy your new lifestyle.