Employers remain cautious as demand surges for AI, cloud and digital specialists.
The UAE labour market is showing strong resilience as it moves into the second half of 2026. Private sector employment recorded 2.5% growth in the first quarter of the year, while the number of registered companies rose by 0.4%, indicating continued momentum in business activity.
Hiring levels are expected to remain broadly in line with Q1 performance through the end of 2026, with a stronger recovery projected in 2027, provided macroeconomic conditions remain stable.
Based on discussions with business leaders and recruitment teams across the UAE, hiring activity has remained resilient despite periods of uncertainty. A June 2026 HR Brew survey of more than 200 HR professionals found that 80% expect to maintain or increase hiring in the second half of 2026. This trend mirrors observations from Aethra’s conversations with businesses and its talent network, where companies continue to recruit in line with long-term strategies, often managing uncertainty through delayed joining dates or temporary onboarding arrangements outside the region.
As companies enter the third and fourth quarters of 2026, they are showing cautious optimism, with confidence levels differing across sectors, locations, and business maturity. Large multinational companies, regional businesses based in the UAE, and younger firms with regional headquarters are showing greater confidence and moving faster to restart expansion plans. Meanwhile, global organisations, especially those headquartered in North America and Europe, are taking a more measured approach while maintaining a positive outlook on the UAE market.
Sectors including engineering, construction, technology, and financial services continue to demonstrate strong momentum. The UAE’s ambition to reach two million companies by the end of the decade, combined with ongoing government-backed infrastructure projects and construction activity, is expected to support sustained workforce demand across these industries in the long term.
A key trend emerging from client demand and global workforce data is the continued competition for high-value talent, particularly in artificial intelligence, digital transformation, and emerging technologies. Companies report that some of the most challenging roles to fill include AI and Machine Learning Engineers, Cloud Architects, and certified DevOps specialists. While the supply of general IT graduates remains strong, businesses are facing a significant shortage of professionals with advanced technical expertise in AI and other specialised fields.
World Economic Forum data suggests that more than 80% of businesses expect technology to significantly transform their operations by the end of the decade. At the same time, recent client surveys indicate that companies are exploring new talent markets beyond traditional hiring hubs, including regions across Africa, Asia, and Eastern Europe, while increasingly adopting offshore teams and gig-based workforce models.
Trade and policy developments are also shaping recruitment trends. Agreements such as the UK–UAE Free Trade Agreement are expected to support cross-border investment and workforce mobility, particularly in sectors including financial services, technology, and professional services.
Businesses are adopting a balanced approach by combining targeted recruitment with employee upskilling, internal mobility programmes, and international assignments to strengthen capabilities. While demand for specialised talent continues to grow, large-scale hiring remains important in sectors aligned with national development priorities such as Dubai’s D33 agenda.
With continued growth in skilled employment and rising demand for AI, digital, and specialised roles, the second half of the year is expected to focus less on high-volume recruitment and more on strategic workforce planning aligned with economic diversification and long-term development objectives.
