Hiring activity across the UAE declined sharply during April and May 2026, with lower-paying jobs recording the steepest fall as businesses responded to the economic impact of the regional military conflict.
According to the latest Naukrigulf Hiring Index, overall hiring dropped 23% compared with the same period last year. However, demand for technology professionals remained relatively strong. Jobs in artificial intelligence (AI), machine learning, cybersecurity and data analytics continued to grow despite the broader slowdown.
Jobs below Dh10,000 record the biggest decline
Lower-income roles experienced the sharpest contraction in recruitment.
The report found that vacancies offering salaries below Dh10,000 per month declined by 26% year-on-year. Meanwhile, jobs paying Dh11,000 to Dh20,000 fell by around 22%.
Higher-paying positions proved more resilient.
- Jobs paying Dh21,000–Dh40,000 declined by 19%.
- Roles offering Dh41,000–Dh80,000 dropped by 11%.
- Vacancies paying Dh80,000–Dh150,000 slipped by only 5%.
Although openings above Dh150,000 fell by 23%, the report noted that this segment represents a very small share of the market. As a result, even minor fluctuations appear larger. Employers also continue to actively recruit for senior executive positions.
Technology hiring outperforms the wider market
Technology remained one of the strongest hiring sectors during the slowdown.
IT and digital jobs declined by only 6%, while core technology roles fell by just 3%. More importantly, demand for specialists in AI, machine learning, cybersecurity and data increased by approximately 20%.
Engineering also outperformed the overall market, with hiring declining 16%.
By comparison, several business functions saw much steeper declines.
- Sales and marketing hiring fell 42%.
- Human resources recruitment dropped 34%.
- Finance hiring also declined 34%.
Energy, healthcare and construction sectors lose momentum
Sector-wise, the oil, gas and energy industry recorded the largest decline in hiring, falling 30% year-on-year.
Healthcare and pharmaceutical recruitment dropped 24%, while real estate and construction hiring declined 20%.
According to Naukrigulf, businesses across the Gulf slowed recruitment after the regional conflict disrupted travel, trade and tourism earlier this year.
The Hiring Index is based on more than 220,000 job postings annually from over 7,000 employers across the UAE, Qatar and Oman.
Employers continue to prioritise skills over nationality
The report also highlighted that employers continue to focus more on skills than nationality.
Around 68% of UAE employers do not specify a preferred nationality in job advertisements.
Among companies that do, Arab candidates account for 21% of postings. European and South Asian candidates each represent around 6%.
Engineering, sales and marketing, and IT roles account for most vacancies seeking Arab candidates. Employers preferring European professionals mainly recruit for IT and healthcare positions.
Industry outlook remains mixed
Sharad Sindhwani, EVP and Business Head at Naukrigulf, said hiring trends differ significantly across sectors and countries.
“While overall activity softened compared to last year, several segments continued to attract employer demand. Technology roles held up better than the broader market in the UAE, Qatar recorded growth across financial services, construction and manufacturing, while Oman continued to see strength in industrial and consumer-facing sectors.”
His comments suggest that companies continue to invest in digital talent even as hiring slows across traditional sectors.
