Employers in the UAE are currently adopting a cautious approach towards hiring due to the current geopolitical situation, but recruiters say the job market is gradually starting to pick up.
“A lot of our customers were all saying the same thing, which was, we need clarity on the situation,” says Ian Giulianotti, executive director of recruitment company Nadia Global. “A responsible employer would not be prepared to commit to somebody if they don't know what's going to happen two months or three months down the way … a lot of vacancies were put on hold.”
The labour market in the UAE experienced a contraction in June, among the sharpest since the height of the Covid pandemic in August 2020, according to the latest seasonally adjusted S&P Global UAE Purchasing Managers' Index.
The reversal in hiring trends reflected not only reduced demand, but also the effects of rising costs and productivity drives, the report said.
“We have seen some employers become more cautious over the past few weeks, particularly when it comes to expanding teams or filling roles that are not immediately business critical,” says Mahesh Shahdadpuri, group chairman of Tasc Outsourcing.
“This is a common response whenever there is uncertainty in the global market. Companies tend to review their hiring plans more carefully until they have greater clarity on the business environment.”
However, it is expected to be a "temporary phase", with hiring activity likely to strengthen as market confidence improves, he adds.
Oli Sanford-Scutt, senior director at Robert Walters Middle East, agrees that while there has been “some short-term caution” in hiring across sectors such as hospitality, aviation, tourism and logistics due to the blockade in the Strait of Hormuz, this appears to have been a “temporary low point rather than the start of a sustained downwards trend”.
“Over the past few weeks, client conversations have become noticeably more positive, and we have seen a significant pickup in hiring activity,” Mr Sanford-Scutt says. “Recovery is likely to be steady rather than dramatic.”
Hiring intent in the UAE fell by 23 per cent annually in April and May compared with the same period last year, with regional tension affecting the sector, according to an index released this week by jobs site Naukrigulf.
However, it noted that technology-related hiring continued to outperform the broader market, with IT and digital recording the smallest decline among major industries.
Oliver Kowalski, managing director of Hays Middle East, says market conditions vary significantly by sector. “We would be cautious about attributing changes in hiring activity to any single factor.
“We anticipate a meaningful increase in hiring activity after the summer as businesses revisit recruitment plans and investment initiatives that were paused during recent months.”
According to Mr Giulianotti, while the situation is starting to “get back to normal, employers will be cautious. They will wait and see what is going to happen".
He estimates that by late this year and early next year, “we will start seeing momentum building again”.
Growth sectors
Sectors supported by government investment and long-term economic growth continue to recruit with confidence, Mr Shahdadpuri says. “We continue to see healthy demand across technology, health care, financial services, infrastructure, renewable energy and professional services. These industries remain focused on growth and continue to invest in skilled talent.”
Mr Sanford-Scutt says hiring activity remains strong in financial services, particularly banking, FinTech, private banking and wealth management. Construction and infrastructure also remain active, alongside health care and technology.
“The market is not moving uniformly. Some sectors are being cautious, but others are continuing to compete hard for specialist talent,” he adds.
Specialisation was a common theme identified by recruiters. “Roles that require hard-to-find technical expertise, strong stakeholder management, commercial impact or regulatory knowledge continue to command demand regardless of wider market caution,” Mr Sanford-Scutt says.
“A clear increase in the amount of senior leadership/ executive roles signals that companies are looking for differing skill sets as they head into the second half of 2026.”
Mr Kowalski anticipates consistent demand for technology professionals, cybersecurity specialists, data and AI experts, sales professionals, finance specialists and engineers.
What about AI?
The UAE has been increasing its adoption of AI amid efforts to develop its economy for the future. The country rose to 13th place globally in terms of AI-related job postings, according to PwC’s 2026 Global AI Jobs Barometer, released this week.
The share of jobs requiring AI skills tripled from 1 per cent in 2021 to 3.2 per cent last year, reaching more than 12,200, according to the report.
“Rather than a broad skills shortage, we're seeing a more limited supply of niche AI, machine learning and analytics talent in the UAE,” Mr Kowalski says.
“Many organisations are therefore looking internationally for experienced professionals, particularly from markets with more established AI ecosystems.
“One of the key challenges is aligning employer requirements with candidate expectations, as highly sought-after professionals often have competitive salary expectations and may require additional flexibility when relocating to the region.”
With demand growing faster than supply, especially for experienced AI professionals, many employers are also responding by investing in training existing employees, Mr Shahdadpuri says.
Mr Giulianotti agrees that in the past two years, “one of the largest vacancy requirements we have had has been for data analysts”.
However, he adds that while AI adoption is growing, “it is still not at the point where we are seeing attendants and actuaries being replaced by AI completely”.
“People will always adapt to it as the challenge comes up. So we're adapting, we're evolving as AI takes more and more of the process driven tasks in employment.”
