UAE salaries will rise between 3.5 and 5 percent in the coming year, while inflation will stand at four percent, according to a new salary report from recruitment and training provider NADIA Global.

According to the report, staff turnover fell from 11 to 8 percent over the last year, with many employers “starting to realise the value in building loyalty from staff due, in part, to new government initiatives” such as longer visas and new foreign ownership regulations.

The average residency rate in the UAE led to a rise in the average country rate of 8-10 years for people between the ages of 25 and 50.

Factors affecting salaries including last year’s introduction of VAT, an oversupply in the housing market which drove rents down 10 to 20 percent, as well as a 5 percent freeze in education costs by KHDA and health insurance premiums that rose by 10 to 20 percent.

“We believe the UAE is a barometer for the region and that it’s entering the next stage of evolution in terms of attracting business and talent on the world stage,” said NADIA global CEO Ajay Malhotra.

Malhotra added that “positive initiatives at government level such as Expo 2020 , as well as macro-level global events whether political or economic such as the Fourth Industrial Revolution are contributing to this.”

“We are confident that there is a lot of opportunity in the UAE for industries such as Artificial Intelligence, IOT, Digital Marketing where the new normal is a safe environment and a standard of living that is higher than many of us would enjoy in our home countries.”