UAE jobs: Nearly half of firms plan to hire more staff in 2026 as growth outlook strengthens

Nearly half of companies in the UAE and Saudi Arabia expect to increase their workforce in 2026, driven by stronger economic projections and continued activity across key sectors. According to a new survey released by recruitment consultancy Cooper Fitch, 48 per cent of employers plan to hire more staff next year, although almost one in three organisations also anticipate job cuts.

The survey highlights a generally positive hiring sentiment in the region, with analysts linking the outlook to robust macro-economic expectations.

Economic outlook signals strong momentum

Companies in the UAE are preparing for expansion amid forecasts of accelerated economic growth.
The Central Bank of the UAE projects real GDP to rise by 4.9 per cent in 2025, followed by 5.3 per cent in 2026, supported by:

• Strong non-oil economic activity

• Increased hydrocarbon output under updated OPEC+ production plans

Non-oil GDP is expected to grow 4.5 per cent in 2025 and 4.8 per cent in 2026, while the hydrocarbon sector is forecast to expand by 5.8 per cent in 2025 and 6.5 per cent in 2026.

Dr. Trefor Murphy, founder and CEO of Cooper Fitch, said the UAE job market — particularly in Dubai — looks “very promising” for the next five to six years due to major infrastructure projects.

“We need more roads, more metro, and a new airport as the current one reaches full capacity,” he said, noting that the expanding population continues to drive demand for large-scale developments.

Hiring and workforce trends

Despite the positive outlook, hiring plans remain mixed:

• 48% of companies expect to hire more staff

• 29% plan workforce reductions

• 23% foresee no change in staffing levels

These figures reflect both growth opportunities and ongoing cost discipline across various sectors. The findings are based on responses from more than 1,000 companies across the Gulf, covering headcounts, recruitment activity, and salary expectations for 2025 and beyond.

Top hiring sectors for 2026

Sectors showing the strongest expansion signals include:

• Aviation, defence and aerospace – nearly half of surveyed firms expect double-digit headcount growth

• Public sector – boosted by ongoing national transformation programmes

• Real estate and construction – mixed outlook, with strong hiring in some areas and reductions in others due to shifting project cycles

Meanwhile, consulting and financial services appear largely stable, with limited expectations for major changes in staffing levels.

Talent availability remains a concern at senior levels

While 67 per cent of employers believe the UAE has sufficient talent to meet hiring needs for the next 12 months:

• 19% disagree

• 14% remain unsure

Rapid population growth has intensified competition in the labour market. According to Worldometers, the UAE's population has surged by almost two million since 2020 — rising from 9.44 million to 11.48 million in 2025.

The survey notes a clear divide between executives and the general workforce. Only 50 per cent of senior leaders express confidence in the talent pool, while 40 per cent say the market does not meet their requirements, particularly for specialist and leadership roles requiring sector-specific expertise.