Hiring in the UAE is becoming increasingly strategic as companies prioritise operational efficiency over workforce expansion, according to Cooper Fitch’s Gulf Employment Index for Q1 2025. Despite a 1.25% rise in job activity during the quarter, most employers are choosing to meet growing demand using existing teams, reflecting a shift from volume hiring to transformation-focused recruitment.
The report attributes this change to the UAE’s transition from a developed to a highly developed economy, where business priorities now centre on embedding productivity within organisational processes. “This is a normal maturity curve seen globally,” said Dr Trefor Murphy, CEO of Cooper Fitch. “After a phase of strong growth, companies typically consolidate before their next expansion cycle.”
While hiring remains stable in key sectors like trade, real estate, and technology, the broader focus is now on workforce resilience. As the non-oil economy continues to grow, projected at 5.2% in 2025, per S&P Global, companies are aligning recruitment with long-term national visions and sustainable development agendas.
The report also explores the global context impacting regional hiring. Although the GCC is not directly affected by the recent tariff war between the US and China, knock-on effects on trade and investment sentiment are influencing hiring decisions, particularly in export-driven sectors such as petrochemicals and aluminium.
In response, firms are reassessing production and recruitment strategies, reinforcing the region’s push for economic diversification and locally rooted workforce models. This marks a shift towards value-based employment growth across the UAE and wider GCC.