UAE Leads Gulf Hiring Rebound with 4% Q3 2026 Growth, says Cooper Fitch

Hiring in the UAE demonstrated a four per cent increase in the third quarter of 2026, marking the strongest growth among the six GCC markets. This rebound follows a four per cent decline in Q2 2026, representing an eight per cent swing in hiring activity.

Regional Overview

Across the Gulf countries, overall hiring rose by two per cent in Q3 2026, recovering from a three per cent contraction in the previous quarter. This improvement is attributed to returning business confidence. Saudi Arabia saw a 1.5 per cent increase, driven by expanded sales and technical teams, while Oman recorded 0.5 per cent growth. Qatar and Kuwait experienced narrower declines of one per cent and two per cent respectively, while Bahrain fell two per cent for its second consecutive quarter of contraction. In Bahrain, the government extended support for small businesses, extending operating-expense assistance from three to six months.

Sectoral Growth

Several sectors in the region showed significant growth:

• Energy: Up seven per cent, the largest increase, as multi-year contract awards for major gas programmes resumed in Saudi Arabia and the UAE.
• Public Sector: Increased three per cent in the UAE, indicating renewed momentum for government projects.
• Senior Finance and Strategy: Each rose six per cent.
• Finance: Grew five per cent.
• Real Estate, Software, and Cyber: Each gained four per cent.
• Sales and Marketing: Rose three per cent.

Conversely, the banking sector declined four per cent, and investment management fell five per cent, marking the sharpest drop. However, Cooper Fitch suggests this reflects a pause after strong earlier hiring, rather than a negative market shift. Mining hiring rose one per cent, but underlying growth in the sector is noted as significantly stronger, driven by domestic resource extraction and overseas investment by Gulf entities.

Market Outlook

Despite the positive Q3 performance, the report indicates that firms remain cautious about the remainder of 2026 due to persistent cost pressures. UAE businesses recorded the fastest rise in selling prices since May 2011 due to increased raw material and freight costs. Central banks in the UAE and other GCC nations raised interest rates by 25 basis points in mid-September, following a similar move by the US Federal Reserve.

Looking ahead, employers are becoming more optimistic about 2027, with many now focusing on longer-term hiring and strategic roles as consumer confidence returns. However, the sustainability of this improvement in Q4 is questioned due to elevated costs and limited visibility on trade and shipping conditions.