Salary expectations and skill shortage are the biggest challenges for employers in the UAE and Gulf countries when hiring a new employee, says a new survey.

Naukrigulf reports that 38 per cent of employers in the UAE and Gulf countries cite mismatched salary expectations as their biggest hiring challenge.

Employees are expecting and demanding higher salaries due to the rising cost of living in the region. In the UAE, rents, school fees, transportation costs, and many consumer goods prices have increased over the past few years, prompting employees to demand higher salaries.

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“Standing between employers and great hires, three challenges came up the most. Salary expectations and skill shortages continue to be the biggest hurdles,” it said. While a talent shortage among GCC nationals is another major challenge for employers when bringing a new employee on board, they have to meet the target of hiring a certain number of locals in the Gulf countries, as required by the government.

According to Naukrigulf, hiring timelines are becoming shorter as employers aim to close open positions within a month.

It found that over half - 52 per cent - of employers want to close open positions in less than a month, 35 per cent within 1-2 months, six per cent in 2-3 months, and seven per cent in more than three months.

Sharad Sindhwani, business and product head at NaukriGulf, sees the GCC region experiencing modest salary hikes, with skilled candidates commanding higher salaries.

“The trend is that salary expectations from candidates are rising, driven by cost-of-living, etc. Employers anticipate having to offer higher compensation to secure in-demand talent, even when official hiring budgets remain modest. So we'll likely see targeted salary increases with the largest jumps for high-demand, skill-shortage roles. Generic roles may see limited upward movement in salaries,” he said.

As reported by Khaleej Times earlier, around 94 per cent in the region plan to hire over the next six months.

“The GCC, particularly the UAE, is showing sustained business confidence. Major investments in infrastructure, real estate, tourism and technology are generating fresh demand for talent. At the same time, employers are addressing critical skill gaps and replacing attrition losses. This combination of expansion and replacement hiring is keeping recruitment activity robust. Minimal layoff signals, at just around one per cent, further show the stability and confidence in the market,” said Sindhwani.

Naukrigulf found that Arabs, Indians, and Filipinos are the most sought-after nationalities in the GCC by employers.

“These groups form a significant share of the region's working population and consumer base, so their presence in hiring patterns also reflects the Gulf's demographic reality. Our understanding is that employers in the GCC value these nationalities for a combination of skills, adaptability, and cultural fit. These nationalities bring the perfect mix: local insights, technical depth and service excellence, making them an unbeatable talent combination for the Gulf,” added Sindhwani.

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