Almost 48% of companies in the UAE and Saudi Arabia aim to increase their workforce, yet about one-third of employers plan job cuts by 2026, as per a survey by Cooper Fitch.
The survey highlights optimistic hiring prospects in the UAE and Saudi Arabia as businesses adjust to ongoing economic developments.
UAE companies are gearing up for hiring in anticipation of robust macro-economic growth.
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The UAE Central Bank forecasts a real GDP growth of 4.9% in 2025, rising to 5.3% in 2026, driven by strong non-oil sector momentum and an increase in the hydrocarbon sector following new OPEC+ plans.
The non-oil GDP is expected to grow by 4.5% in 2025 and 4.8% in 2026, with the hydrocarbon sector expanding by 5.8% in 2025 and 6.5% in 2026.
Dr. Trefor Murphy, Cooper Fitch’s CEO, told Khaleej Times that the UAE job market looks promising, especially in Dubai, due to significant infrastructure projects and population growth.
“In the next five to six years, particularly in Dubai, we’ll see large infrastructure projects. More roads, metro expansion, and a new airport are needed as the current one nears capacity,” stated Dr. Murphy.
Cooper Fitch’s findings indicate 29% of employers anticipate workforce cuts, highlighting cost management and structural adjustments as key considerations for many companies. Additionally, 23% foresee no staffing changes, pointing to a stable outlook.
The survey assessed over 1,000 Gulf region organizations, focusing on recruitment, workforce sizes, and salary trends for 2025 with 2026 projections.
Hiring Sectors
Aviation, defense, and aerospace sectors show strong expansion signals, with nearly half expecting double-digit headcount growth.
“Public sector organizations expect significant growth, supported by ongoing national transformation programs. Real estate and construction show varied outcomes, with some anticipating significant hiring and others predicting reductions due to shifting project cycles,” noted the Dubai-based recruitment expert.
Conversely, consulting and financial services show fewer double-digit changes, suggesting stabilizing rather than aggressive growth or reduction.
Talent Shortage?
While 67% of employers believe the UAE has sufficient talent for the next 12 months, nearly 19% disagree, and 14% are uncertain, according to Cooper Fitch.
The UAE job market is becoming more competitive as the population has surged in the past five years. Worldometers reports the UAE’s population grew from 9.44 million in 2020 to 11.48 million by 2025.
“The gap between senior leaders and the broader workforce is notable. Among executives, 50% are confident in the talent pool, while 40% feel the market cannot meet their needs,” it noted, adding that specialist and leadership roles are increasingly competitive, especially for sector-specific expertise or transformation capabilities.
