June 28, 2025 | Dubai, UAE – UAE hiring trends see a new shift in the second half of the year, the companies are keeping a check on their hiring budget, and allocating it only for the ones who stand out. With the corporate taxes coming in September, it becomes an important factor to consider, and now, more companies are being careful with their hirings. There is a dramatic change in rising job opportunities in UAE, pushing individuals to be adaptive and dynamic with the fast-paced developments. Even in other countries like Saudi Arabia, the shift is parallel. However, the hirings for tech-based talent are in high demand and can even earn well-deserved incentives for individuals.
Effect of U.S. Tariffs and External Conflicts
External factors too became a serious factor in deliberating the UAE hiring trends. Due to the sudden notice of new tariff rates imposed by the US on imports in April, many corporations had put a setback on onboarding for job opportunities in UAE.
“There haven’t been any major changes in demand for talent. Except for the heightened caution in hiring for a few weeks during the US tariff and Iran issues,” said Hasan Babt, Managing Director at the Consultancy Tuscan.
Shift In The Job Opportunities In The UAE
In 2025, payment growth across certain sectors has been stagnant. Sectors such as heavy manufacturing, hospitality and leisure are expected to have a modest salary lift, between 0-3%. Industry analysts attribute these subdued wages to the constant availability of talent to the point it has reached saturation in job opportunities in UAE. As the roles in these sectors are filling up seamlessly, the employers hardly face to increase the compensation. This similar UAE hiring trend extends to the back office positions as the increments are constrained here.
With operational cost tightening due to approaching taxes, the focus on efficiency and automation increases. Companies are choosing to operate with the same salary structure and offer substantial payment increments. The professionals can expect fewer monetary incentives in the coming days. However, a report from ManPower group indicates a peak in UAE hiring trends for the transport and logistics sectors, creating more demand for job opportunities in the UAE. Many companies are also reluctant to allocate a high recruiting budget as they use AI and automation for certain repetitive and tiring tasks. Companies do not want to invest in more human capital in such areas as AI performing these roles is not a very distant future.
A new core factor affecting the UAE hiring trend is the introduction of corporate tax obligations. Companies on a calendar-year cycle, operating from January to December, will have the first tax filings initiated in September. This will lead to a new expense factor in their budget lineup, hence leading to less capital for the recruiting aspect.
Hence, the businesses are practising a more cautious approach to onboarding the workforce this year. Finance professionals and recruiters hint that the final quarter of 2025 will be a critical period. The companies will have to re-evaluate their finance structures, calculate the addition of the tax liabilities and plan their recruitment for 2026 accordingly.
Demand Increases For Tech Talent
The industries are not shying away from hiring individuals with strong tech skills and a good command of technology and artificial intelligence. Across sectors, this demand is leading to the opening of new job opportunities in UAE.
The hike in salaries of certain roles has been significant recently. The average salary of an AI engineer has gone up from Dh28,000 to Dh43,000 to Dh33,000 to Dh48,000. Similarly, a pay for role in cyber security will be increased from Dh29,000-Dh45,000 to Dh34,000-Dh50,000.
“Companies are willing to guarantee a portion of bonus or even buy out candidates’ invested equity from previous employers,” A Tuscan report mentions. It also states the increase in use of sign-on bonuses and retention bonuses across the Gulf for executive and tech talents.
Recruiters are willing to spend a significant amount, not only in technology but also in other sectors such as tourism, infrastructure and renewable energy. UAE hiring trends are peaking in niche sectors, especially for people with advanced technological skills.
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