Jobs: UAE companies still hiring but with extra caution to keep costs in check

Dubai: UAE employers are taking extra caution when it comes to new hiring at the start of the second-half of the year, with costs - especially as they have to factor in corporate tax payments – having a decisive say.

The same caution is being seen in Saudi Arabia - but when it comes to tech skills, employers are willing to pay more. And add in more incentives, if need be.

In April, there were also concerns related to what the US tariffs on imports would do to regional businesses, at which point too there was a temporary halt at new recruitments at some big business groups. But, across the board, ‘there haven’t been any major changes in demand for talent’, said Hasan Babt, Managing Director at the Consultancy Tuscan. “Except for the heightened caution in hiring for a few weeks during the US tariff and Iran issues.

When it comes to salary packages, “Heavy manufacturing, hospitality and leisure sectors in the UAE and Saudi Arabia are seeing minimal – or subdued – salary growth, at between 0%-3% in 2025. This is due to a stable supply of talent and a saturated job market.

“The same is being seen in general back-office roles.”

That’s the nature of the feedback given by HR managers and job consultancies over how the UAE hiring market fared in the first six months of 2025. In the coming weeks, businesses in the UAE transport and logistics sector are most likely to be hiring, according to a recent report from ManPower Group.

But across multiple categories, the fact remains that there are way too many applicants competing for a limited – or reduced – number of positions. In those positions, higher salary packages are just about impossible to get, say HR managers. “Plus, many companies realize that AI and automation will take away more positions in the near future,” said one source. “It’s not distant anymore.”

The other new variable that UAE businesses are dealing with is their corporate tax commitments. The first tax returns will be filed starting September for the cohort of UAE businesses that operate on the January to December financial year. In other words, that’s less funds available to these companies, and one way many of them are dealing with is inspecting their hiring requirements more closely.

Some finance managers and recruiters say that the final quarter of 2025 will be when businesses will need to take a reality check on their costs, including tax expenses, and what their hiring for 2026 should be.

But when it comes to AI and the next wave of tech advances, if there is talent available, UAE and Saudi enterprises are willing to pay – and top dollar at that.

This is ‘fueling a war for talent’, according to Babat. And not just in technology, but across sectors such as infrastructure, tourism, and renewable energy.

“In 2024, there was increasing use of sign-on bonuses and retention bonuses in the UAE and KSA, especially for executives and tech talent,” says a Tuscan report. “Companies are willing to guarantee a portion of bonus or even buy out candidates’ unvested equity from previous employers – practices that were less common in the region but are now necessary to secure top talent.

“For instance, several large family businesses in the UAE have implemented phantom stock or profit-sharing plans to tie high-potential managers to the company for the long haul.

“In Saudi Arabia, firms setting up operations in Riyadh’s burgeoning financial district often offer premium expatriate packages (high base pay plus substantial housing, schooling, and travel allowances.”

If in 2024, an AI or machine-learning engineer would command an average of Dh28,000-Dh43,000, this year that's gone up to Dh33,000-Dh48,000. (In Saudi Arabia, the same positions would now command Dh35,000-Dh50,000, according to Tuscan data.)

When it comes to a cyber security architect's position, the 2024 average of Dh29,000-Dh45,000 would have risen to Dh34,000-Dh50,000.

"Based on all the feedback we are getting, UAE and Saudi enterprises are not cutting down on their technology investments," said a tech consultant. "The focus on AI into everything is still there, especially from government-affiliated entities.

"It's only if those projects are stalled would tech and AI jobs suddenly experience a glut, and potential redundancies. But that's not happening for now."