Nearly half of businesses across the UAE are preparing to expand their teams in 2026, according to new insights, with several major industries expected to drive the strongest hiring activity in the coming year.
UAE Employment Outlook: Almost 50% of Companies Set to Boost Hiring in 2026; Key Growth Industries Identified.
A new employment study conducted by Cooper Fitch indicates a mixed yet dynamic outlook for the labour markets in both the UAE and Saudi Arabia for the year 2026. While a significant portion of businesses across the two major Gulf economies are preparing to expand their teams, a notable share of employers are also preparing for workforce reductions, reflecting the complex economic adjustments underway in the region.
According to the findings, nearly half of all surveyed organisations—approximately 48 per cent—expressed plans to increase their staffing levels over the coming year. This suggests that many companies anticipate continued business growth, new projects, and increased demand across various sectors. Hiring optimism is particularly evident among businesses that are benefitting from government-led development programmes, diversification initiatives, and sustained investor confidence. Their readiness to recruit more talent demonstrates a belief in the region’s economic resilience and forward momentum.
However, the survey also highlights a contrasting trend that underscores ongoing restructuring within certain industries. Nearly one-third of employers signalled that they expect to reduce headcount in 2026, pointing to a period of consolidation, technological transition, or cost optimisation strategies. These potential job cuts may be linked to automation, shifting market demands, global economic pressures, or internal restructuring as organisations refine operational efficiency. Although these reductions are not universal, they reflect a realistic recalibration taking place within specific sectors.
Despite the presence of both expansion plans and downsizing intentions, the overall pulse of the labour market in the UAE and Saudi Arabia remains largely positive. The report emphasizes that hiring sentiment across the two countries is buoyed by ongoing economic activity, sustained investment, and long-term national development agendas such as the UAE’s economic diversification strategy and Saudi Arabia’s Vision 2030 roadmap. These initiatives seek to encourage innovation, support emerging industries, and drive large-scale infrastructure and technology projects—factors that naturally create new job opportunities.
Businesses throughout the region are responding to these developments by adjusting their workforce strategies. Companies anticipating growth are preparing to attract new talent, particularly in technology, hospitality, energy, finance, logistics, and professional services. On the other hand, employers who foresee reductions are likely implementing strategic restructuring to stay competitive in a rapidly evolving environment. This duality—growth in some fields and contraction in others—is a hallmark of a transforming market rather than a shrinking one.
The survey ultimately suggests that the employment landscape in 2026 will be characterised by both expansion and realignment. While certain industries are gearing up for increased hiring to support ambitious national projects and rising consumer demand, others are preparing for tighter operational models. Nevertheless, the combined effect of these trends reflects an economy that is active, responsive, and adapting to new realities rather than one experiencing stagnation.
For job seekers, this means opportunities will remain strong, especially for those with skills aligned to high-growth sectors. For employers, it indicates a competitive recruitment environment where talent retention and strategic hiring will be more important than ever.
Many businesses across the UAE are preparing to expand their workforce as they anticipate improved economic conditions in the near future. With confidence rising in the country’s overall growth prospects, employers are looking ahead to increased activity, new opportunities, and a more optimistic business environment that supports additional hiring and team expansion.
Economic forecasts released by the Central Bank of the UAE indicate that the nation is positioned for a period of strong and sustained growth over the next several years. According to the bank’s latest projections, the UAE’s real GDP is set to climb by 4.9 per cent in 2025. This upward momentum is expected to continue into the following year, where growth could reach 5.3 per cent. Such positive expectations stem from a combination of expanding non-oil activities and renewed vigour in the hydrocarbon sector, which is projected to gain strength as the OPEC+ alliance adjusts production strategies and increases output in line with updated market plans.
Looking more closely at the structure of the economy, the UAE’s non-oil sector—now a major driver of diversification, innovation, and long-term economic resilience—is predicted to maintain its impressive performance. Growth in non-oil GDP is forecast to rise by 4.5 per cent in 2025 and reach 4.8 per cent in 2026. This reflects the continuous expansion of industries such as finance, tourism, real estate, technology, logistics, and advanced manufacturing. These sectors have benefitted from ongoing reforms, major investment initiatives, and strategic national programmes designed to reduce reliance on oil revenue.
At the same time, the hydrocarbon sector is set to regain significant traction. After a period of moderated production, the sector is expected to accelerate meaningfully, with projections indicating growth of 5.8 per cent in 2025 and 6.5 per cent in 2026. These improvements are largely tied to anticipated increases in oil and gas output as OPEC+ gradually relaxes previous limitations and allows member countries to boost production. This resurgence will contribute to higher export volumes, greater fiscal surpluses, and renewed capital flows into large-scale national development projects.
Against this economic backdrop, labour market experts are optimistic about what the future holds for employment in the UAE. Dr. Trefor Murphy, founder and chief executive of Cooper Fitch, shared insights with Khaleej Times, expressing strong confidence in the direction of the job market over the next half-decade. He emphasised that the employment landscape—particularly in Dubai—is set to benefit from extensive infrastructure initiatives that will accompany the country’s demographic and economic expansion.
Dr. Murphy highlighted that Dubai’s continuous transformation requires significant upgrades across almost every part of its urban framework. As the city’s population climbs and demand increases for housing, services, and commercial development, new megaprojects are expected to emerge at an unprecedented pace. These projects will not only address the needs of a fast-growing metropolis but will also stimulate job creation across engineering, construction, urban planning, transportation, technology, and various operational support functions.
He noted that the coming years are likely to witness major efforts to expand Dubai’s transportation network. Roads will need to be widened or newly constructed to manage rising traffic. Public transport systems—most notably the metro—will require further extension to accommodate increasing passenger numbers and serve new residential and business districts. Such expansions are essential to maintaining smooth mobility throughout the emirate and supporting its role as a global hub for business, tourism, and logistics.
One of the most significant projects on the horizon, according to Dr. Murphy, is the development of a new international airport. Dubai’s current airport, one of the busiest in the world, is rapidly approaching its maximum capacity. To meet future demand and preserve the city’s competitive edge as a global aviation centre, the construction of a new, larger, and more technologically advanced airport is becoming increasingly necessary. This monumental undertaking alone is expected to generate thousands of jobs and attract major international partnerships.
Altogether, these economic and infrastructural developments signal a period of remarkable opportunity for workers and businesses alike. The UAE’s blend of robust economic growth, diversified industries, and visionary long-term planning is paving the way for a thriving job market and a strengthened national economy.
The research conducted by Cooper Fitch revealed that nearly one-third of the surveyed companies—around 29 per cent—are preparing for possible reductions in their employee numbers. This signals that cost optimisation, restructuring efforts, and strategic realignment are still very much on the agenda for a significant portion of businesses across the region. At the same time, another group of employers, making up approximately 23 per cent of participants, indicated that they do not foresee any major changes to their staffing plans in the coming year. Together, these trends suggest an overall employment landscape that blends cautious stability with selective adjustments as companies assess their long-term priorities.
The survey itself gathered detailed insights from more than 1,000 organisations operating in various industries throughout the Gulf. It examined several core aspects of workforce planning, including hiring intentions, expected employee numbers, and anticipated salary movements for 2025, while also compiling early forecasts for 2026. By analysing the responses from such a wide range of employers, the study provides a clearer picture of how companies are preparing for the economic conditions ahead and what job seekers can expect in terms of opportunities, competition, and compensation trends across the region.
When examining the sectors expected to drive job creation in the coming period, the survey highlights several industries that are showing particularly strong momentum. Among the most dynamic are aviation, defence, and the broader aerospace ecosystem. Close to half of the organisations operating in these fields indicated that they expect their teams to grow at double-digit rates. This trend reflects the rapid expansion of air transport networks, national investments in advanced defence capabilities, and the GCC’s growing role in global aerospace innovation. With airlines increasing fleets, airports undergoing major expansions, and defence-related projects gaining scale, employers in these sectors foresee a rising need for specialised technical talent, engineers, safety professionals, and support staff.
The findings also point to major opportunities within the public sector. Government entities across the region continue to operate at the heart of national transformation agendas, which aim to boost economic competitiveness, modernise infrastructure, and strengthen public services. As these long-term programmes progress, many government bodies anticipate significant increases in staffing levels. This expected expansion is tied to new initiatives in areas such as digital governance, sustainability, smart-city development, and the rollout of nation-wide service improvements. Recruitment in the public sector is therefore likely to remain steady and robust, driven by both ongoing reforms and the strategic vision of national leadership.
Meanwhile, the real estate and construction industries reveal a more varied picture. These sectors remain crucial pillars of economic growth, yet their workforce outlook is not uniform. A sizeable number of companies expect to undertake major hiring efforts, especially those involved in large property developments, hospitality projects, new transport systems, and urban expansion initiatives. These firms are planning to onboard architects, engineers, project managers, skilled labourers, and specialists in sustainable building practices. However, a different segment of the same industries anticipates the possibility of reducing employee numbers. This divergence reflects the cyclical nature of real estate markets and the fluctuating pace of construction activity, where companies may scale up or down depending on project timelines, financing conditions, and market demand.
The recruitment insights firm explained that this wide range of hiring expectations within real estate and construction illustrates the sector’s sensitivity to evolving development cycles. While some organisations are in growth mode due to strong pipelines or government-backed projects, others may be nearing the completion of major assignments or adjusting operations in response to shifting market conditions.
In contrast to these more volatile sectors, consulting and financial services present a more steady and predictable outlook. The survey revealed that relatively few employers in these industries anticipate major swings—either large increases or significant cuts—in their headcount. The absence of extreme changes suggests that these sectors are settling into a stable phase, where growth may continue but at a more measured pace. Consulting firms appear to be focusing on targeted hiring to support specific client needs, while financial institutions are likely concentrating on efficiency, digital transformation, and compliance rather than rapid expansion.
Overall, the hiring landscape across industries suggests a complex but balanced environment—one where high-growth fields like aviation and aerospace are expanding quickly, public-sector recruitment is being driven by national development agendas, and traditional sectors like real estate continue to evolve in response to market conditions. At the same time, consulting and finance maintain steadier employment trends, signalling a mature and stabilising stage for both industries.
