UAE hiring shifts from volume to precision as talent demand evolves
Rather than a broad-based slowdown, the UAE hiring landscape is becoming increasingly segmented, reveals Iktimal Daneshvar at Korn Ferry
06 May, 2026
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The narrative around hiring slowdowns in the UAE is gaining traction, but the reality inside organisations is far more nuanced. According to Iktimal Daneshvar, vice president and senior client partner for Recruitment Process Outsourcing (RPO) across the Middle East and Africa at Korn Ferry, the market is not contracting — it is recalibrating.
“I would not describe the UAE market as being in a hiring freeze,” she says. “What we are seeing is a shift from volume hiring to precision hiring.”
This shift reflects a broader evolution in how organisations across the UAE are approaching workforce strategy, moving away from aggressive headcount expansion toward more disciplined, value-driven hiring decisions.
At the core of this transition is a sharper focus on business impact. Roles are no longer approved based on expansion plans alone but are increasingly tied to measurable outcomes such as revenue growth, digital transformation, compliance, and operational resilience.
“Companies are still hiring, but the bar is higher. Every role now needs a clearer business case,” Daneshvar explains.
This has led to a noticeable divergence in hiring activity. Business-critical roles continue to move forward, while non-essential or speculative positions face longer approval cycles or are deferred altogether. The result is a market that feels slower on the surface, despite underlying demand remaining strong.
“The key change is discipline,” she adds. “Organisations are asking more questions before they go to market: do we need to hire externally, can we promote internally, can we automate part of the role and is the compensation aligned to the value this hire will create?”
This more structured approach is also reflected in broader labour market indicators. The UAE continues to rank among the strongest hiring markets globally, but investment in headcount is becoming more targeted.
“The story is not ‘hiring has stopped’. It is that hiring has become more intentional.”
Expat dynamics reshape talent strategies
The UAE’s workforce model has long been built on international talent, but shifting expectations among expatriates are now reshaping hiring strategies.
“The expat workforce remains central to the UAE economy but expectations have changed,” Daneshvar says.
Candidates are no longer evaluating roles based solely on salary. Instead, they are assessing the total value proposition — including cost of living, housing, education, healthcare, flexibility, career progression, and long-term stability.
This shift is particularly significant in a higher-cost environment, where compensation is directly linked to retention risk.
“Korn Ferry’s regional workforce data shows that 80 per cent of employees in the UAE and Saudi Arabia would consider changing jobs for better pay,” she notes.
For employers, this means rethinking not just salaries but the entire employee value proposition. Benefits, flexibility, family support, and clear career pathways are becoming central to attracting and retaining talent.
At the same time, companies are placing greater emphasis on local and regional hires, who can onboard faster and carry lower relocation risk.
“The UAE is still highly attractive to global talent but employers cannot rely on the market’s appeal alone,” Daneshvar says. “Candidates are comparing Dubai and Abu Dhabi with Riyadh, New York, Singapore, London and other global hubs.”
“The companies winning talent are the ones that can clearly answer: why join us, why now and why stay.”
Rather than a broad-based slowdown, the UAE hiring landscape is becoming increasingly segmented.
Daneshvar cautions against generalising entire sectors as weak, pointing instead to a more granular shift within industries.
“In most industries, we are seeing slower hiring in non-critical support roles, speculative headcount and roles that are not clearly linked to revenue, transformation or regulatory need,” she explains.
Some caution is evident in consumer-facing businesses, early-stage companies, and lower-margin operations, where organisations are reassessing cost structures and prioritising efficiency. However, this does not signal a wider decline in demand.
Instead, hiring momentum remains strong in sectors aligned with long-term economic priorities and transformation agendas.
“Demand is still accelerating in technology — especially AI, data, cybersecurity, cloud, and digital transformation,” Daneshvar says.
Financial services also continues to hire actively, particularly in risk, compliance, wealth management, fintech, and digital banking. Beyond this, infrastructure, aviation, logistics, energy, healthcare, and advanced manufacturing are all seeing sustained demand.
The defining trend across these sectors is a growing scarcity of specialised skills.
“The clearest theme is skills scarcity including technical and digital skills, leadership roles and operational capability.”
From headcount to capability
This evolving landscape points to a fundamental shift in how organisations define workforce growth. The focus is no longer on increasing headcount, but on building capability.
Generalist hiring is becoming more measured, while competition for specialised, high-impact talent is intensifying. This has created what Daneshvar describes as a bifurcated market — one where demand exists, but is concentrated in specific skill sets and functions.
“So the market is bifurcated. Generalist hiring is more measured but demand for specialist, revenue-linked, transformation-led and compliance-critical talent is still very competitive,” she says.
For employers, this means investing more in workforce planning, internal mobility, and skills development. For candidates, it underscores the importance of aligning capabilities with areas of strategic demand.
Ultimately, the UAE hiring market is not slowing — it is maturing. Organisations are becoming more deliberate in how they deploy talent, balancing growth ambitions with cost discipline and long-term resilience.
This transition reflects broader economic and structural shifts across the region, as businesses align hiring strategies with national priorities around digital transformation, diversification, and productivity.
For Korn Ferry, which advises government, semi-government, and private sector entities across the UAE, the message is clear: hiring remains active, but it is no longer about scale alone.
Instead, success will depend on how effectively organisations can identify, attract, and retain the talent that drives measurable impact.
In a market defined by precision, the ability to connect hiring decisions directly to business outcomes is emerging as the new benchmark for workforce strategy.
