UAE job demand to rise by 1 million by 2030 amid AI push

Dubai: The UAE will need to add around one million new workers by 2030 as economic expansion, digital transformation and artificial intelligence adoption accelerate, according to a report from Albayan quoting ServiceNow and Pearson, with experts saying the shift will significantly reshape investment priorities, hiring strategies and national workforce development. 

Hamza Dweik, Head of Trading for the Middle East and North Africa at Saxo Bank, said the UAE is entering one of the most significant workforce expansion phases in its history, with demand expected to reach about 1.03 million additional employees by the end of the decade.

This represents a projected 12.1% increase in total employment, a growth rate that surpasses major markets including the United States at 2.1%, the United Kingdom at 2.8% and India at 10.6%, according to the report. 

Dweik attributed the surge primarily to rapid economic growth, nationwide digital transformation initiatives and the accelerated adoption of artificial intelligence technologies.

The anticipated demand for talent is expected to drive higher levels of domestic investment as both public and private sector organisations scale up to meet the needs of a high-growth, technology-driven economy.

Dweik noted that sectors such as manufacturing, which is expected to add 133,000 jobs, education with 78,000 new positions, retail with 60,000 roles, financial services with 40,000 jobs and healthcare with 39,000 positions will require significant capital investment to expand infrastructure, enhance automation and increase service capacity. 

High-growth sectors such as energy and utilities, projected to grow by 33%, will also require increased investment to support national priorities including renewable energy, smart infrastructure and sustainable urban development.

At the same time, the expansion is expected to place renewed emphasis on developing national talent. The report indicates demand for technology roles alone will rise by 54 per cent, requiring more than 91,000 additional technical specialists by 2030.

This is likely to accelerate investment in reskilling programmes, AI literacy, digital skills development and technical fields such as software engineering, data analytics, cybersecurity and digital marketing. 

Dweik added that AI is expected to augment rather than replace human roles, prompting a stronger focus on equipping local talent with advanced skills needed to collaborate effectively with emerging technologies.

Mahesh Shahdadpuri, Founder and Chief Executive of TASK, a recruitment and outsourcing firm, said the pace of economic growth is driving profound changes in how organisations approach talent acquisition and workforce development.

From a talent perspective, companies are no longer focused solely on expanding their workforce but are also exploring how intelligent agents can support teams by handling repetitive and routine tasks.

This hybrid approach, combining human expertise with technology-driven digital agents, is expected to improve operational efficiency while allowing employees to focus on higher-value and more strategic work.

As a result, Shahdadpuri expects increased domestic investment in talent development programmes, reskilling initiatives and technology-driven recruitment tools aimed at preparing both human and digital workforces for future demands. 

Meanwhile, Typhoon Topkok, Senior Vice President of International Operations at PeopleStrong, said the projections are evidence of a structural shift in the UAE’s economic growth model rather than a short-term hiring cycle.

He said absorbing such a large workforce would require more than traditional recruitment, with investment increasingly directed towards human capital infrastructure including integrated HR systems, payroll platforms and workforce analytics to support efficient scaling.

Recruitment strategies are also expected to shift towards skills-based models combining external hiring, internal mobility and reskilling programmes supported by AI-driven workforce planning tools. 

Topkok said the focus on national workforce development is also expected to shift from policy ambitions to practical implementation, requiring real-time insights into workforce skills, progression levels, and readiness.

“The real challenge will not simply be increasing headcount, but designing a workforce capable of scaling with speed, flexibility and productivity as AI becomes increasingly embedded in economic activity,” he said.

The most visible impact of this growth is expected in labour-intensive sectors requiring specialised skills and high service standards, including financial services and insurance, healthcare, aviation, retail, hospitality and logistics.

Additionally, Richard Doherty, Senior Director at Workday, said sustaining economic growth and supporting digital transformation will require employers to rethink not only how many people they hire, but who they hire and how talent strategies are structured.

As workplace dynamics evolve, human resources departments will increasingly focus on data-driven decisions centred on employee experience and engagement.

Doherty said the combination of the right technology with a human-centric approach will be critical in attracting top talent, particularly as AI expansion requires stronger strategic workforce planning to ensure the availability of critical skills.

From cybersecurity and cloud computing to data analytics and digital operations, organisations will need to anticipate future skills demand and align talent strategies with long-term business objectives. 

However, talent availability is still a major challenge. Data from the Society for Human Resource Management (SHRM) shows seven out of ten employers struggle to find full-time employees, suggesting reliance on AI to support recruitment processes will continue to increase.

When used responsibly, AI-enabled HR tools can significantly reduce administrative burdens, allowing HR teams to focus more on strategic initiatives and improving employee engagement.