Nearly half – 48 per cent – of companies in the UAE and Saudi Arabia plan to hire more people, but nearly one-in-three employers plan to cut jobs in 2026, according to a new survey released by Cooper Fitch.

According to the survey, the UAE and Saudi Arabia's job markets are signalling positive hiring sentiment as employers respond to ongoing economic activity.

Companies in the UAE plan to hire amidst expectations around stronger macro-economic growth in the country.

The Central Bank of the UAE expects real GDP to expand by 4.9 per cent in 2025, followed by a further increase to 5.3 per cent in 2026, supported by the anticipated strong momentum in the non-oil activities and a robust increase in the hydrocarbon sector following updated OPEC+ production plans.

The non-oil GDP is expected to grow by 4.5 per cent in 2025 and 4.8 per cent in 2026, while the hydrocarbon sector is projected to expand by 5.8 per cent in 2025 and 6.5 per cent in 2026.

Dr Trefor Murphy, founder and CEO of Cooper Fitch, told Khaleej Times that the UAE job market looks very promising over the next five to six years, particularly in Dubai, on the back of very large infrastructure projects as the population continues to grow.

“We'll see next year and over the next five to six years, particularly in Dubai, very large infrastructure-type projects. We need more roads. We need metro. We need a new airport as the current airport reaches its full capacity,” said Dr Murphy.

Cooper Fitch's study found that 29 per cent of employers expect workforce reductions, indicating that cost discipline and structural adjustments remain a real consideration for a sizeable share of companies. A further 23 per cent anticipate no change to staffing levels, creating a broadly steady outlook for the year ahead.

The survey covered key decisions across more than 1,000 organisations in the Gulf region, focusing on recruitment activity, workforce headcounts, and salary trends for 2025 and projections for 2026.

In terms of sectors' performance, aviation, defence and aerospace display some of the strongest expansion signals, with nearly half of respondents reporting expectations of double-digit headcount growth.

“Public-sector organisations also anticipate significant increases, supported by ongoing national transformation programmes. Real estate and construction present the widest spread of outcomes, with a notable share expecting substantial hiring while others anticipate sharp reductions, reflecting the sector's exposure to shifting project cycles,” said the Dubai-based global recruitment specialist.

By contrast, consulting and financial services report relatively few double-digit changes in either direction, suggesting stabilisation rather than aggressive expansion or contraction, it added.

While 67 per cent of surveyed employers, as per Cooper Fitch, believe the UAE has enough talent to meet their hiring needs for the next 12 months, almost one-fifth - 19 per cent - disagree, and 14 per cent are unsure.

The UAE's job market is becoming competitive as the population of the country has increased dramatically over the past five years. According to Worldometers, the UAE's population has increased by nearly two million since 2020, rising from 9.44 million in 2020 to 11.48 million in 2025.

“The divide between senior leaders and the broader workforce is striking. Among executives, only 50 per cent feel confident in the talent pool, and 40 per cent believe the market cannot meet their requirements,” it said, adding that specialist and leadership positions are becoming increasingly competitive, particularly where employers require sector-specific expertise or transformation capabilities.

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