UAE Hiring Surges in Q3, Outpacing Gulf Rivals Amidst Regional Economic Headwinds

Hiring within the United Arab Emirates experienced a significant rebound in the third quarter, reaching 4%, the highest rate across the Gulf region, as indicated by a recent report. This recovery follows a 4% drop in hiring during the second quarter. By September, demand had recovered from a mid-year slowdown, with new export business growth accelerating to its fastest pace in nearly two years, according to Cooper Fitch's third-quarter employment index. Despite this positive trend, companies are maintaining a cautious outlook for the upcoming year.

Across the wider Gulf Cooperation Council, hiring also returned to growth in the third quarter, increasing by 2% after a 3% decline in the preceding quarter. Saudi Arabia saw recruitment rise by 1.5%, and Oman recorded a 0.5% growth. However, Qatar experienced a 1% decrease in hiring, while Kuwait and Bahrain each saw a 2% decline.

The ongoing regional conflict, which began on February 28, has exerted considerable pressure on regional economies. The effective closure of the Strait of Hormuz has particularly impacted oil-exporting nations. The International Monetary Fund (IMF) projected in a recent report that the UAE's economy would contract by 3.9% this year, with an anticipated rebound to 7.7% growth in 2027, contingent on the normalization of shipping routes and the reopening of the strait. The IMF also forecasts a 3.3% contraction for Saudi Arabia's economy this year. Bahrain, Kuwait, and Qatar are expected to face double-digit contractions in 2026, with figures of 11.3%, 16.7%, and 15.6% respectively. Oman is the sole Gulf member state projected to achieve positive economic growth in 2026, at 4.1%. All six GCC states are anticipated to post growth in 2027, according to the IMF.

Cooper Fitch noted that the contraction in Gulf hiring "lasted a single quarter and the market is now back within the modest growth range seen through 2025." Growth was observed across a broader spectrum of job functions compared to the previous quarter, with previously paused mandates resuming, particularly in the energy sector.

Sectors Hiring

The energy sector recorded the most substantial hiring increase across the Gulf in the July-September period, with a 7% rise. Mandates that were put on hold during periods of regional tension have steadily resumed as conditions have eased. The report highlighted that in the UAE, growth within the energy market encompassed areas such as nuclear and renewables. The execution of Saudi Arabia’s Vision 2030 initiative also contributed to the sector's expansion. The report further stated that securing candidates for roles such as project directors, commissioning specialists, and contracts leaders remained challenging, with individuals possessing scarce technical skills continuing to receive multiple job offers, thereby maintaining a candidate-driven market.

Hiring in finance increased by 5%, strategy roles saw a 6% rise—marking their first increase of 2026—and employment in real estate and software grew by 4%. Recruitment in sales and marketing rose by 3% in the third quarter, described as "reflecting cautious confidence rather than a broad hiring rebound." Human resources roles saw a 2% increase.

Conversely, hiring in banking declined by 4%, and investment management fell by 5% following a period of robust hiring earlier in the year, which was driven by regional platform expansion and fund activities.

While hiring activity picked up in the third quarter, Cooper Fitch emphasized that it remained selective. Clients prioritized advancing active searches and securing specialized expertise over broad expansion, leading to reduced activity in several markets and segments of the financial services industry.

Looking ahead to the fourth quarter, the sustainability of this improvement remains uncertain. The report indicated that while business demand has established a firmer foundation, costs continue to be elevated, and visibility regarding trade and shipping remains limited. The intensified competition for scarce specialist talent is also placing additional pressure on employers aiming to secure critical capabilities.