Mohamed Alabbar has announced that artificial intelligence will reduce Noon’s workforce by 50 per cent within the next three months. The statement came during the Business Summit 26 in Belgrade on May 21, 2026.
The move marks one of the strongest public endorsements of AI-led workforce transformation by a Gulf business leader. Moreover, it signals a major shift in how large regional companies plan to operate in the coming years.
Alabbar said Noon has already deployed 12 AI agents across multiple business functions. These systems now handle recruitment, operational workflows, logistics coordination, customer interaction, and inventory management.
AI Agents Now Conduct Recruitment and Daily Operations
According to Alabbar, Noon no longer relies on traditional staff interviews. Instead, AI-powered systems conduct 45-minute automated candidate assessments.
“It’s the first time we have 45 minutes automated interview for staff. We don’t conduct interviews anymore,” he said during the event.
The AI agents also support operational decision-making across Noon’s business network. As a result, the company aims to improve efficiency while lowering dependence on manual processes.
Noon operates across the UAE, Saudi Arabia, and Egypt. The platform processes millions of transactions every month through its e-commerce, logistics, and digital payment operations.
Emaar’s Hiring Freeze Used as AI Success Example
Alabbar also pointed to Emaar Properties as proof that AI-driven efficiency can work at scale.
He claimed the company has not hired a single employee in the last three years. Despite that, business performance reportedly increased by 150 per cent during the same period.
In addition, Emaar’s Q1 2026 financial results support the company’s growth trajectory. The developer reported net profit of AED 3.66 billion in the first quarter, reflecting a 19 per cent year-on-year increase.
The remarks reinforce Alabbar’s broader argument that AI is no longer a future experiment. Instead, it has become an active operational strategy inside major Gulf businesses.
One of the Largest Workforce Reductions in GCC E-Commerce
Noon employs tens of thousands of workers across fulfilment centres, technology teams, and commercial operations. Therefore, a 50 per cent reduction within one quarter could become one of the largest workforce contractions in GCC e-commerce history.
Regional competitors such as Amazon, Talabat, and Namshi have also invested heavily in AI-led efficiency programmes. However, none of these companies have publicly committed to workforce reductions on this scale within such a short timeline.
Industry analysts believe the development could accelerate AI adoption across retail, logistics, and customer service sectors in the Gulf region.
AI Transformation Raises Wider Industry Questions
The announcement has also intensified debate around the future of employment in the Middle East’s digital economy.
While AI can improve speed, reduce costs, and streamline operations, large-scale workforce reductions may create concerns around job displacement and workforce reskilling. Consequently, businesses across the GCC may face increasing pressure to balance automation with human capital development.
At the same time, many technology leaders argue that AI will create new categories of high-skilled jobs, especially in data operations, machine learning, and AI governance.
For now, Noon’s aggressive AI strategy positions the company at the centre of a rapidly evolving conversation about automation, productivity, and the future of work in the Gulf.
