Expert Advice

Salaries in the Middle East: Let’s talk about it

Career Advice
February 11, 2026
Category
Career Advice

Let’s be honest, if you’ve been in the Middle East’s construction industry for a while, you’ve probably felt it too.

Salaries just… don’t feel the same anymore.

Five or six years ago, the story was simple: move to Saudi Arabia or Dubai, join a mega-project, and you’d instantly see your bank balance grow. Big allowances, big titles, and an even bigger lifestyle.

I remember hearing stories of professionals moving from the UK or Europe and landing 50–100% salary jumps, full school fee coverage, worldwide healthcare…the works.

That was the era of tax-free dreams and mega-project budgets. Scarcity of talent made it all possible.

But let’s be real…that era’s gone.

Fast forward to 2026, and most of us are asking the same question:

“Why do salaries feel lower now, even though the market’s booming?”

The short answer lies in Middle East salary trends that have quietly but fundamentally changed over the last five years.

Let’s unpack that.

1. When salaries were sky-high

Let’s rewind to the golden years.

The 2010s were wild. Saudi Arabia was pouring billions into Vision 2030. Dubai was rebranding itself as the global capital of everything. Abu Dhabi was doubling down on cultural tourism. Qatar was building the World Cup before our eyes.

All of that meant one thing: talent scarcity.

According to the Hays 2015 Salary Guide, senior project managers in Dubai could earn AED 25,000–65,000/month, plus housing, schooling, flights, and benefits.

And Saudi? Even higher, because they were in full-blown talent import mode.

Why did it work? Because back then:

  • The region was in build-everything-now mode, NEOM, Expo, Lusail.
  • There was a massive skills gap, especially in cost and project management.
  • And hiring managers had one tool: money.

If you lost a senior architect, you hired the next one for 15–20% more. Nobody blinked. Delays cost more than salaries, and cash was flowing.

That’s how the Middle East became a magnet for international professionals, fast, ambitious, and financially rewarding.

Full breakdown:

2. The great correction (2023–2026)

Now, let’s fast-forward to where we are at today.

The money’s still here, but it’s spread differently. Fewer “expat premiums” and a market that’s finally maturing.

Here’s why:

  • Talent flood. Post-COVID, thousands of professionals came back to the Gulf. The UAE’s population jumped past 11 million, according to Times of Dubai. That means more people competing for the same roles.
  • Project slowdowns. Some Saudi giga-projects like NEOM and The Red Sea have been re-evaluated or delayed. Not cancelled, just recalibrated. With less frantic hiring, employers can afford to be selective. [What’s really happening in Saudi Arabia?]
  • Localization. Emiratization and Saudization have stepped up. Nationals get hiring priority. This naturally tightens expat opportunities.
  • Rising costs. Developers are squeezed by high construction costs, delayed payments, and slimmer margins. The free-spending era of 2018 is history.

So yes, salaries have plateaued.

A Senior Project Manager today might earn AED 45,000–55,000/month in the UAE, or SAR 55,000–65,000/month in Saudi. That’s roughly 15–25% less than pre-2020 highs.

The Last Two Years: What the Numbers Say (and Don’t Say)

Let’s address the obvious: salaries have gone up.

  • Over the past two years, compensation across construction, architecture, and design in the UAE rose 8–20%.
  • Digital delivery, sustainability, and high-stakes project roles saw premiums of up to 30%.
  • Saudi Arabia’s hiring wave inflated offers even more, with some professionals jumping 40–50% overnight.

But here’s what most reports don’t tell you.

We’re now living with the aftermath of those inflationary offers.

  • Quick promotions and inflated titles were used as retention tactics during the Saudi boom. Those packages are now being “corrected”. (The harsh reality of construction in Saudi Arabia)
  • Talent returning from Saudi is pressuring internal parity; not necessarily reducing salaries, but spotlighting pay inconsistencies.
  • Many older professionals (50+) are struggling to re-enter the UAE market. Their experience is valuable, but often considered too expensive compared to tech-savvy Gen Y and Gen Z talent. (15+ years in the Middle East but struggling to find a job?)
  • Itemised allowances are declining. Packages are becoming all-inclusive, often without adjusting for rising rent or school fees.
  • Family allowances and relocation support are almost non-existent. Most packages are now structured for self-only, even for senior roles.

The Salary Misalignment Problem

Here’s the fundamental disconnect I hear in nearly every negotiation.

Employers: “We’re offering a competitive salary.”

Professionals: “It doesn’t even cover my rent increase.”

Why?

The core issue is that many employers are still hiring against outdated salary benchmarks for GCC construction jobs, while employees' real-time living costs keep rising every few months.

  • Dubai rents increased 15–25% in 2024–25. Salaries didn’t.
  • Over 75% of you in a poll said that your salary hasn’t kept pace with increased living expenses.
  • Most salary reviews still happen annually, while economic shifts occur quarterly.

This is why we’re seeing unprecedented churn at the 12–18 month mark. More and more professionals are leaving because they see the cost gap widening. (Here are some things you can do as an employee)

Not All Roles Are Created Equal

I’ll be blunt with you when I say this, but in 2026, simply being experienced isn’t enough.

Being valuable to project delivery is.

For general roles, especially non-technical leadership roles, they are seeing stagnant or declining offers. A typical salary increase (if at all) might look somewhere between 10-15% depending on the position and company.

I often hear, “Shyam, they’re not worth that, find me someone outside the UAE for less who’ll do even more.”

And I’m sitting there thinking…I’m a good headhunter, but I’m not a magician.

However, specialist roles like digital PM, BIM, ESG, etc, can still command up to 25-30% of an increase. For today’s market, that’s huge!

The Rise of Lifestyle Compensation

While pay has increased, the cost of living has risen faster, particularly residential rent. In fact:

  • Many packages are now more controlled, with capped allowances and fewer housing or schooling perks.
  • According to Mercer’s 2025 Middle East Housing and Schooling report, 52% of employers offer housing allowances in advance, often to help with rental cheque deposits.
  • Schooling benefits vary for 64% of companies based on seniority, despite 89% still offering some level of coverage.

More and more professionals are asking: “Can I build a sustainable life here?”

That’s the reality.

Candidate expectations in 2026 include:

  • Clear breakdown of compensation, important since end-of-service gratuity is only calculated on basic pay (60–70% of total).
  • Housing allowances aligned with current rental values.
  • Transparent performance and promotion frameworks (especially given Saudi’s former “quick promotion” trend that inflated market norms).
  • Relocation support, such as 30 days accommodation or deposit assistance, even if full packages are rare.
  • Guidance on living costs and cultural transition. Welcome Packs highlighting rent, schooling, commute, and local conditions.

What stands out today is flexibility and added benefits, sometimes more so than just higher pay.

3. What are construction professionals earning in 2026?

Here’s a breakdown of current construction salaries in the UAE ****across sectors.

Note: All salaries listed are gross monthly AED, excluding bonuses or relocation allowances. Also note that these figures are very high-level boutique firms averages. Actual salaries can vary significantly depending on role, seniority, sector, company size, and package structure (housing, schooling, bonuses).

Real Estate Developer

Role Experience (Years) Low (AED) High (AED) Average (AED)
Senior Architect / Designer 15+ 45,000 50,000 47,500
Project Director 15+ 50,000 60,000 55,000
Associate Director 10–14 45,000 50,000 47,500
BIM Manager 10–14 20,000 25,000 22,500

Consultancy

Role Experience (Years) Low (AED) High (AED) Average (AED)
Senior Project Manager 15+ 45,000 60,000 52,500
Project Manager 10–14 30,000 40,000 35,000
Director of Development (Architecture) 15+ 50,000 70,000 60,000
BIM Lead 15+ 35,000 50,000 42,500

Studio (Architecture & Design)

Role Experience (Years) Low (AED) High (AED) Average (AED)
Senior Architect / Designer 15+ 45,000 50,000 47,500
Project Director 15+ 50,000 60,000 55,000
Associate Director 10–14 45,000 50,000 47,500
BIM Manager 10–14 20,000 25,000 22,500

Remember, this is just a snapshot. For the full breakdown, explore our 2026 UAE Salary Guidelines.

You can also read the following for more details:

4. Oversupply of talent

Here’s the paradox.

There’s a huge demand for delivery talent, especially in Saudi Arabia, but limited availability of people who’ve actually delivered large-scale hospitality or infrastructure projects before.

So while mid-level staff are stretched thin, senior professionals are facing age barriers and cost ceilings.

It’s a strange mix of opportunity and fatigue.

At the same time, there are too many people here and not enough jobs to support them.

Yet, specialists are still gold.

Roles like BIM Managers, MRICS-certified QSs, sustainability consultants, and data-led project controls specialists remain in short supply.

So while mid-level generalists face tough competition, specialists still hold power.

5. Ageism in construction

Here’s what’s not being discussed enough:

Once you hit 50, your value should go up because of experience. But in this market, it often goes down.

Why?

Because you’re expensive. Because insurance costs rise. Because some employers assume you can’t “adapt to tech.”

It’s wrong, but it’s the reality.

This results in:

  • Senior professionals struggling to justify 60K+ packages.
  • Younger hires leading teams without mentorship.

Increasingly, senior professionals are entering the market through project-based or consulting contracts rather than full-time employment. The appeal: higher hourly/daily rates, flexibility, and reduced long-term commitment from employers. The downside: you cover your own visa costs, medical bills, and benefits.

Articles you may find interesting:

6. Nationality bias

Let's address the elephant in the room.

According to surveys from Gulf Business and GulfTalent data: Western expats earn significantly more than those from other countries.

Why does this happen?

  1. Western professionals command higher salary expectations in their home countries (UK/US/Australia), so when relocating, they anchor higher.
  2. Recruitment firms sometimes stratify pay by nationality, an institutional bias.
  3. Some employers believe Western workers bring "premium" expertise (often unfounded).
  4. Language fluency (English + local) might play a role for Western expats.

Is this changing? Slowly. Compliance pressures and public pressure (Amnesty International, CIPD, etc.) are making pay discrimination riskier. Major firms are auditing for pay equity. But it's still present and accepted in many mid-market firms.

7. The employer’s perspective

To understand salary stagnation, you need to see the developer's and contractor's side of the table:

  • Giga-projects carry thin margins: On a AED 2 billion project, a 2-3% margin is normal. That's AED 40-60 million profit on massive revenue. Labour is the biggest controllable cost.
  • Client payment delays are systemic: It's common for contractors to wait 60-90 days for invoices to be paid, straining cash flow and limiting what they can offer staff.
  • Bid competition is fierce: With project pipelines visible, contractors bid aggressively to win work. Lower bids = lower budgets = lower salaries.
  • Supply chain costs volatile: Post-COVID, material costs, shipping, and labour (especially at the skilled blue-collar level) remain unpredictable.

The Saudization levy, companies pay SAR 800/month per expat employee, is a direct drag on margins. Companies are incentivized to hire locals, which itself creates structural pressure to offer competitive local salaries, further squeezing what's left for expat packages.

8. Salary negotiation in 2026

According to Michael Page 2026 Salary Guide:

  • 2024: 64% tried to negotiate; 24% succeeded.
  • 2025: 49% tried; only 15% succeeded.

That’s a 37% drop in one year.

Why?

Because competition exploded. Every skilled professional relocating to Dubai or Riyadh dilutes negotiation power.

Employers have options. Candidates have competition.

But data also shows salaries are rising overall, especially for digital, sustainability, and finance-adjacent roles.

So, wages are up, but personal leverage is down.

Read these before you accept an offer:

9. Why the numbers don't tell the whole story

Even with modest salary increases (3-5% annually), your real purchasing power has declined due to:

1. Housing Inflation (Worst Offender)

  • Dubai apartments (1BR, Marina): +57% from 2018 to 2025
  • Abu Dhabi apartments: +10% annually (2025), +27% over 3 years
  • Villas in prime locations (Saadiyat, Yas): +15% YoY

2. Schooling Costs

  • International school fees in Dubai: AED 40,000-80,000/year per child
  • That's 15-20% of a mid-level professional's total compensation

3. General Inflation

  • UAE inflation (2023-2025): Moderate but persistent at 2-4% annually
  • Food, transport, utilities: +3-6% over 3 years
  • Electricity: Still subsidized but rising (especially for high usage)

4. Visa and Admin Costs

  • Work visa renewal: AED 1,500-3,000 every 2-3 years
  • Labour card: AED 200-500
  • Notarization of documents: AED 100-500
  • These add up, especially for families

More on that here:

The Hidden Cost of Middle East Salaries

Here's what gets glossed over in salary discussions: the work-life balance is worse than you'll find in the UK, US, or Europe.

Construction culture in the Middle East runs on deadlines and tight delivery windows. Site teams work 6-7 day workweeks, often in challenging climate conditions. Remote work is still limited in many firms. [”My employer won’t let me work remotely.”]

Not to mention:

  • Distance from family (annual flights aren't enough; you miss significant events, emergencies)
  • No social security; you're self-insuring against unemployment and retirement
  • Visa dependency (your work status depends on your employer; changing jobs requires exit visas and sponsor approval in some cases)

10. When salaries aren’t paid on time

I’ve seen too many construction professionals go through this lately, no salary, no medical insurance, no clear answers.

If this has happened (or is happening) to you, I’m genuinely sorry. But here’s the truth: employers keep getting away with it because professionals either don’t know their rights or they’re too afraid to act.

This doesn’t have to be your story.

You’ll hear it all:

  • “Cash flow issue”The client hasn’t paid us yet.
  • “Soon”We’re sorting it out; just be patient.
  • “We always pay eventually.”

None of that is your problem.

Your salary is contractual, not a favour. The company’s cash flow issues are their mismanagement, not your financial burden.

What NOT to Do (The Mistakes That Cost You)

1. Don’t Resign Too Early

It’s tempting. You’re angry, stressed, and bills are piling up. But resigning before you escalate weakens your legal case.

In many situations, it can be seen as you accepting the delay or waiving your claim.

What to do instead: file a complaint first, through MOHRE (UAE) or Najiz (KSA), before you resign.

Once you have a case number, you’re protected. Then, if you still want to leave, do it from a position of strength, not desperation.

2. Don’t Skip Documentation

Keep everything: every email, every message, every payslip (or lack of one).

Save:

  • Your employment contract
  • Bank statements showing missed salary
  • Emails or WhatsApp chats about delays
  • Screenshots from MOHRE / EIDA (UAE) or Qiwa / Najiz (KSA)
  • Labour card or Iqama details

3. Don’t Rely on “Trust” Alone

A polite WhatsApp to HR isn’t a record. It’s just a chat.

Send one clear, documented email (and copy it to your personal account):

“I am writing to formally notify you that I have not received my salary for [Month/Year], which was due on [Date]. According to my employment contract dated [Contract Date], my monthly salary is [Amount]. As of [Today’s Date], this payment remains outstanding. Please confirm the payment status within 48 hours. This message serves as formal documentation of the delay.”

That’s your digital paper trail.

They’re not your friends, don’t treat them like it.

4. Don’t Wait Past One Month

One month of no salary is a red flag.

Two months is a crisis.

Three months is wage theft.

  • In the UAE, your employer is legally in default after 15 days.
  • In Saudi Arabia, it’s 30 days under the new 2025 digital wage clause.

If your salary isn’t paid by day 16 (UAE) or day 31 (KSA), file a complaint immediately.

Don’t wait for another “next week.” That’s how employers drag it out.

🇦🇪 UAE:

Step 1: Send a Formal Email

Use the template above.

It shows you acted in good faith and it becomes your first piece of evidence.

Step 2: File a Complaint with MOHRE

After 15 days, go straight to MOHRE. Three options:

  • MOHRE App: Download the app → log in with UAE Pass Choose “My Salary” (confidential service) File: “Salaries delayed more than 15 days” Attach your documents
  • Call Centre: 800 60 or 600 590 000
  • In Person: Visit any Tawjeeh Centre with Emirates ID, labour card, and contract

MOHRE keeps your identity confidential, employers won’t know unless you tell them.

Step 3: What Happens Next

  • MOHRE contacts your employer within 3–5 days.
  • Mediation follows; if unresolved, it escalates to Labour Court.
  • Court cases under AED 100,000 have no fees.

Free Zones & Medical Insurance

If you’re in a Free Zone (JAFZA, DAFZA, RAK, etc.), file through the Free Zone’s Labour Department, not MOHRE.

And if your medical insurance is inactive, mention it.

UAE law requires employers to maintain active coverage. Unpaid premiums strengthen your case for negligence.

More on that here:

🇸🇦 Saudi Arabia:

On October 6, 2025, Saudi Arabia rolled out one of the most significant labour reforms in the region: a mandatory digital wage clause embedded in all employment contracts, linked directly to two government platforms: Qiwa (contract registration) and Najiz (enforcement).

Here's what it means for you:

If your salary is late:

  • If you don't receive your full salary within 30 days of the due date, you can file an electronic claim via Najiz.
  • If you receive only partial payment after 90 days, you can also file a claim.
  • The system auto-verifies payment status through Madad platform.
  • The employer gets notified and has 5 days to object or pay.

If your employer defaults:

  • Saudi Arabia's Expatriate Worker Wage Insurance (launched October 2024) covers up to SAR 17,500 (~$4,667 USD) in unpaid wages across up to 6 months.
  • If 80%+ of workers at a firm go unpaid for 6+ months, the insurance kicks in.
  • A repatriation ticket home (up to SAR 1,000) is also covered if you choose to leave rather than transfer to another sponsor.

What You Need to Do

  1. Ensure your contract is notarized and linked to Qiwa: Don't accept verbal agreements or non-notarized contracts. Insist on formal documentation.
  2. Know your Najiz claim rights: If payment is overdue, document the date and file electronically. Don't wait or hope.
  3. Request salary certificates before signing: Companies will now be required to verify your previous salary history (via salary certificates) to cap salary increases at a sustainable rate. This is both good (prevents unrealistic expectations) and limiting (your negotiation range shrinks).

Final Thoughts

The golden era of expat perks is definitely over.

If you’re building a long-term career here:

  1. Specialize. Don’t stay generic.
  2. Benchmark regularly.
  3. Negotiate total packages, not just salary.
  4. Understand wage protection laws (Najiz, Qiwa in KSA).
  5. Build mentorship value.
  6. Upskill continuously: BIM, LEED, PMP, AI tools.
  7. Quantify results and achievements wherever possible.
  8. Build your personal brand and network. This is what will get you hired faster, for roles that were never even advertised.

Explore the latest job opportunities: https://www.workpanda.io/jobs

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