A recent report from the Naukrigulf Hiring Index indicates that the UAE job market experienced a 23% decline in overall hiring during April and May 2026 compared to the same period last year. This downturn is largely attributed to the regional military conflict that began on February 28, which has impacted key sectors including tourism, trade, and travel, prompting many private firms to reduce recruitment or freeze hiring.
The impact of this slowdown has been uneven across different salary brackets. Roles offering monthly compensation of up to Dh10,000 faced the most significant reduction, with hiring volume dropping by 26%. Mid-range positions also saw declines: jobs paying between Dh11,000 and Dh20,000 fell by 22%, while those in the Dh21,000 to Dh40,000 range decreased by 19%. Higher-paying roles proved more resilient, with positions offering Dh41,000 to Dh80,000 dropping by 11%, and top-tier roles between Dh80,000 and Dh150,000 seeing only a 5% decline.
While roles paying over Dh150,000 appeared to drop by 23%, the report notes that this figure is statistically skewed due to the small total volume of such positions, meaning minor fluctuations result in larger percentage shifts. Employers remain actively engaged in filling these high-value vacancies.
Despite the broader market contraction, the technology sector demonstrated notable stability. IT and digital roles saw a decline of only 6%, with specific tech positions falling by just 3%. Furthermore, demand for specialized skills in artificial intelligence, machine learning, cybersecurity, and data analytics actually grew by approximately 20%. Engineering roles also outperformed the general market, recording a 16% decline.
Conversely, other sectors faced steeper challenges. Sales and marketing, as well as HR and finance, saw hiring volumes drop by 42%, 34%, and 34% respectively. Industry-specific data shows that oil, gas, and energy sectors experienced the sharpest decline at 30%, followed by healthcare and pharmaceuticals at 24%, and real estate and construction at 20%.
Regarding candidate demographics, the report highlights that 68% of UAE companies do not specify a nationality preference in their job postings. Among those that do, Arab candidates are the most sought-after, accounting for 21% of advertisements, while European and South Asian candidates each represent about 6%. These preferences are largely consistent with previous years, with employers seeking Arab candidates primarily for engineering, sales, and marketing roles, while European applicants are frequently targeted for IT and healthcare positions.
The analysis, which draws on data from over 220,000 annual job postings across more than 7,000 companies in the UAE, Qatar, and Oman, underscores the varied pace of economic adjustment. Sharad Sindhwani, EVP and Business Head at Naukrigulf, noted that while overall activity has softened, specific segments continue to attract 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,” Sharad Sindhwani stated.
Jobs paying Dh11,000-20,000 a month fell by about 22 per cent, and those paying Dh21,000-40,000 fell by about 19 per cent.
Jobs paying Dh41,000-80,000 dropped by just 11 per cent.
The best-paid jobs, those between Dh80,000 and Dh150,000 a month, barely changed – down only five per cent.
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A very small number of jobs pay more than Dh150,000 a month, and while this group fell more sharply (23 per cent), Naukrigulf Hiring Index says this is because there are so few of these jobs that small changes look bigger than they really are.
Engineering jobs also did relatively well, down 16 per cent.
By industry, oil, gas and energy saw the steepest fall at 30 per cent.
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