UAE employers are responding to rising residential rents, which have surged across Dubai and Abu Dhabi, by increasing housing allowances by an average of four per cent in 2025, according to Mercer’s Middle East Housing and Schooling Report. With upfront rent cheques common, 52% of firms now provide housing allowances in advance. Around 70% offer separate housing allowances, while 25% include them in consolidated packages. Additionally, 89% of employers cover schooling costs, with varying policies by seniority. Mercer notes that market-aligned housing, schooling, and benefits are crucial for attracting and retaining top talent as competition for skilled professionals intensifies.
