Nearly half of businesses across the UAE and Saudi Arabia are gearing up for fresh recruitment drives in 2026 — even as a significant portion prepare for job cuts — according to new data released by Cooper Fitch.
The survey reveals that 48% of companies in both countries plan to increase their workforce next year, signalling strong confidence in the region’s economic trajectory. At the same time, 29% of employers expect workforce reductions, reflecting cost pressures and structural adjustments that continue to shape the Gulf’s evolving job landscape. Another 23% plan to maintain current staffing levels, resulting in an overall steady hiring outlook for 2026.
From The Gulf Talk’s analysis, the UAE stands out with especially strong hiring momentum. Organisations are preparing to expand teams ahead of projected high growth across both oil and non-oil sectors.
UAE Economic Forecasts Fuel Hiring Optimism
The Central Bank of the UAE forecasts real GDP growth of 4.9% in 2025 and 5.3% in 2026, driven by robust non-oil activity alongside major boosts in the hydrocarbon sector following updated OPEC+ production plans.
Non-oil GDP is projected to grow by 4.5% in 2025 and 4.8% in 2026, while the hydrocarbon sector is expected to expand by 5.8% in 2025 and 6.5% in 2026.
These economic tailwinds are translating directly into hiring sentiment.
Dr. Trefor Murphy, founder and CEO of Cooper Fitch, told Khaleej Times that the UAE’s medium-term job outlook — especially in Dubai — is set to strengthen further as the emirate accelerates large-scale infrastructure projects to support its booming population.
“Over the next five to six years, particularly in Dubai, we will see major infrastructure-type projects. We need more roads, metro expansion, and entirely new airport capacity as the current airport reaches its limits,” he said.
Which Sectors Are Hiring?
The Gulf Talk review of the survey highlights several standout sectors expected to lead recruitment:
- Aviation, Defence & Aerospace → Nearly half of employers expect double-digit hiring growth
- Public Sector & Government-Linked Entities → Strongly supported by transformation programmes
- Real Estate & Construction → Mixed performance; strong hiring for new developments, but cuts expected where projects taper off
- Consulting & Financial Services → Stable, with minimal large swings in headcount
A Talent Gap on the Horizon?
Even with strong hiring plans, concerns around talent availability remain.
While 67% of companies believe the UAE has enough talent to support their needs over the next year, 19% disagree and 14% are uncertain.
The UAE’s population has surged by nearly two million people since 2020, rising from 9.44 million to 11.48 million in 2025 — making competition for roles fiercer than ever.
Cooper Fitch notes a clear divide between senior management and the broader workforce: just 50% of executives feel confident about the available talent pool, and 40% say the market cannot meet their hiring requirements, especially for leadership and specialist roles.
From digital transformation to mega infrastructure development, employers across the Gulf are increasingly seeking niche sector-specific expertise — and the race to attract top talent is intensifying.
