AI talent is reshaping hiring, pay and career paths across the Gulf

Dubai: Hiring across the Gulf continues to expand, but the pattern is shifting. Growth remains strong, yet employers are focusing their budgets on a smaller group of high-impact skills that directly influence productivity, technology adoption and leadership depth.

Artificial intelligence, data science and senior management capability have moved to the top of recruitment priorities in the UAE and Saudi Arabia, shaping salary trends and career mobility across the region.

Surveys tracked by Nadia Global show around 48% of companies in the UAE expect to increase hiring in 2026. Labour market growth of about 2.5% in the final quarter of 2025 carried momentum into the new year, supported by continued demand across technology, finance, healthcare and logistics.

Saudi Arabia recorded stronger employment growth, estimated at roughly 4.5% in 2025. Long-term demand remains elevated, with projections pointing to the need for hundreds of thousands of additional workers by 2030 under Vision 2030 reforms.

Raghib Salim, general manager at Nadia Global, said competition for talent is set to intensify.

“The employment market will continue to show record growth in 2026,” Salim said. “Competition will be robust, especially in popular hubs like Dubai and Riyadh where employers will be faced with continued demands by their staff to increase salaries and benefits to match the ongoing rise in the cost of living.”

Salim added that staff turnover is expected to rise above the traditional 7% to 10% range, increasing pressure on employers to retain skilled workers.

Recruiters point to clear gaps between supply and demand. Data science, artificial intelligence, leadership, analytical skills, project management, engineering, software development, sales and finance rank among the most difficult capabilities to source.

Candidate shortages are concentrated in business analysis, data science, AI implementation, tax and treasury accounting, sales and digital marketing. Vacancy volumes continue to rise, with Nadia Global reporting a 65% increase in new clients year on year and a 25% rise from existing clients.

Average salary increases of around 5% were recorded in 2025. Bonus payments ranged from one to six months’ salary, with most clustered around two to three months.

Technology roles account for the fastest growth. The RemotePass 2025 Hiring Report shows the UAE and Saudi Arabia among the strongest global markets for AI hiring, with growth of 39% and 26% year on year.

Demand for data scientists rose 43%, AI product manager roles grew 37% and AI engineer hiring increased 31% between 2024 and 2025. The UAE leads globally in AI hiring growth, rising to 48% in 2024–25.

“The Gulf is focusing on roles that drive real change,” said Kamal Reggad, co-founder and chief executive of RemotePass. “Firms are prioritising specialised talent that shape outcomes and not just output.”

Dubai continues to attract professionals seeking career progression, lifestyle and long-term wealth creation. Strong tourism performance, infrastructure investment and international connectivity support this pull.

DIFC plays a central role. By late 2025, more than 1,500 AI, fintech and innovation firms operated within the centre. Companies in the sector raised over $4.2 billion collectively, supported by initiatives such as the Innovation Licence and the FinTech Hive accelerator.

Abu Dhabi also continues to benefit from diversification efforts that are gaining momentum across non-oil sectors.

Saudi Arabia remains on a parallel path. While fiscal consolidation has slowed some initiatives, labour market reforms have altered workforce dynamics. The replacement of the Kafala system with a contract-based framework has given expatriate workers greater freedom to change jobs and travel, affecting about 13 million foreign workers.

“This reform allows workers to switch employers and leave the country without needing sponsor approval after their contracts end,” said Ian Giulianotti, executive director at Nadia Global.

Egypt continues to lead hiring volume across software, engineering, data science and QA roles, maintaining its position as a key source of regional tech talent. Pakistan ranks second across several engineering categories, supported by a large developer base.

AI hiring growth in Egypt has stabilised, while acceleration in the UAE and Saudi Arabia reflects where capital deployment and advanced technology adoption are concentrated.

Employers are paying for skills that deliver measurable outcomes. Technical depth, leadership capability and execution experience carry increasing weight in hiring decisions.

Skills aligned with AI deployment, data-driven decision-making and scalable leadership offer the strongest prospects in a Gulf job market that continues to grow, but with rising expectations on both sides.