UAE hiring stays resilient, but the real race is now for AI talent

The UAE labour market is entering the second half of 2026 with strong resilience. Earlier this year in Q1, private sector employment grew by 2.5%, while the number of registered companies increased by 0.4%, reflecting a healthy pipeline of business activity. Hiring activity is expected to close 2026 broadly in line with Q1 levels, with a more pronounced rebound anticipated into 2027, assuming continued macroeconomic stability.

Based on conversations with business leaders and hiring teams across the UAE, hiring has remained resilient despite periods of uncertainty. According to a June 2026 HR Brew survey of over 200 HR professionals, 80% expect to maintain or increase hiring in the second half of 2026, a pattern consistent with what we at Aethra are observing across business conversations in the UAE and among our database. Companies have continued recruiting in line with long-term strategy, often adjusting through delayed start dates or temporary onboarding outside the region.

Companies heading into Q3 and Q4 2026 are demonstrating cautious optimism, with sentiment varying by sector, geography and maturity. Large multinationals and regional businesses operating in the UAE, younger and regionally headquartered firms are more confident and quicker to resume growth plans, while global organisations, particularly those headquartered in North America and Europe, remain more measured though still positive on the UAE outlook.

Sectors such as engineering, construction, technology and financial services continue to show stronger momentum. The UAE’s target of reaching two million companies by the end of the decade, alongside continued government backed infrastructure development and construction activity, is strengthening the long term pipeline for workforce demand across these sectors.

A notable shift, reflected both in client demand and global data is the sustained competition for high-value talent, particularly in AI, digital and emerging technologies. Several companies said that the hardest roles to fill in are AI and Machine Learning Engineers, Cloud Architects and Certified DevOps Engineers. They also reported that while general IT graduates are abundant, there is a severe shortage of deep technical specialists in AI and other tech. World Economic Forum data indicates that over 80% of businesses expect technology to fundamentally reshape operations by the end of the decade. In parallel, recent client surveys suggest that they are exploring new talent corridors beyond traditional markets, including parts of Africa, Asia, and Eastern Europe,  increasingly leveraging offshore teams and gig-based talent.

Trade and policy developments are also influencing hiring patterns. Agreements such as the landmark UK–UAE FTA are expected to strengthen cross-border investment and mobility, particularly across financial services, technology and professional services.

Businesses are balancing targeted hiring with upskilling, using internal mobility and cross-border assignments to build capability. While demand for highly skilled professionals is rising, large-scale hiring remains relevant in sectors linked to national development agendas such as D33.

With continued growth in skilled employment and sustained demand for AI, digital and specialised roles, the second half of the year is likely to be defined less by volume hiring and more by strategic workforce investment aligned to economic diversification and national development goals.