Hiring activity across the Gulf region recorded a 2% increase in the third quarter of 2026, marking a return to growth following a 3% decline in the previous quarter. According to the latest Gulf Employment Index, the rebound was driven by recovering business confidence after previous regional instability. The UAE demonstrated the most significant momentum within the GCC, reporting a 4% increase in hiring activity. Stay up to date with the latest news.
Regional Performance and Sector Trends
- UAE: Recorded the strongest regional performance with a 4% rise in hiring.
- Saudi Arabia: Increased hiring by 1.5% as firms expanded technical and sales teams to accommodate new investments.
- Oman: Achieved 0.5% growth.
- Kuwait and Qatar: Saw narrowing declines at 2% and 1%, respectively.
- Bahrain: Experienced a 2% decline, marking a second consecutive quarter of contraction for Bahrain, Kuwait, and Qatar.
Dr. Trefor Murphy, founder and CEO of Cooper Fitch, characterized the UAE’s performance as a “very decent recovery.” Reflecting on the volatility, he noted that hiring in the country had fallen by 4% during the second quarter, representing an “8 per cent swing in terms of the amount of work” when compared to the recent third-quarter gains. While April was cited as the weakest month, June showed steady improvement, and September activity matched levels seen in the same months of 2024 and 2025. He added, roughly on par with the same month in 2025 and 2024, september was a strong month. Murphy noted that all three have now contracted for two quarters in a row.
Energy emerged as the highest-growth sector, with hiring rising 7% as project mandates—previously stalled due to regional tensions—resumed following the stabilization of conditions. Major gas initiatives in Saudi Arabia and the UAE provided critical support for this growth. Public sector projects in the UAE also gained traction, contributing to a 3% increase in public sector recruitment. According to saudi Arabia, Houthi projectile on Najran injures six, damages homes, vehicles. Over 11,000 bots in 1 month: UAE official warns of attempts to fuel regional tensions. According to saudi Arabia, Intercepted 4 drones over Riyadh, other regions.
Specialized roles saw varied demand.
Senior finance and strategy roles grew by 6%, while general finance roles increased by 5%. UAE National Day holidays: How to use annual leave to get 5-day break.
Strategy hiring specifically marked its first increase of the year, focusing primarily on in-house teams rather than external consultancies.
Meanwhile, software, cyber, and real estate each saw a 4% gain.
Conversely, banking fell by 4%, and investment management experienced a 5% decline, which the report attributed to a temporary pause following significant hiring earlier in the year rather than a broader market shift. Firms, nonetheless, remained cautious about the year ahead, the report said, even as new export business grew at its fastest pace in almost two years.
Mining and Specialist Talent Shortages
Although mining grew by 1%, Murphy suggested that underlying growth in the sector is significantly more robust. He pointed to two primary drivers: domestic resource development and the strategic expansion of Gulf-based investment vehicles into overseas mining operations. This activity has intensified the demand for specialized investment and technical expertise. One is domestic mining where natural resources exist.
Competition for high-level talent remains high, with candidates for project director and commissioning roles frequently receiving multiple offers. Murphy noted that such shortages are not unique to the Gulf but represent a global trend in high-demand fields. With consumer confidence returning, firms are moving beyond short-term fixes to prioritize strategic workforce planning. Employers are increasingly looking toward 2027, treating current efforts as a catch-up phase for goals missed earlier in the year. According to aoun, Israel has not adhered to agreement; Lebanon still commited to diplomacy. “If you’re confident about the world and the market, then you start having a longer-term view on workforce planning, then you start looking at longer-term hires,” Murphy said. “Consumer confidence is coming back in. At those more strategic hires.”, people are starting to look at long-term hires.
Economic Context and Future Outlook
Despite the positive hiring trend, the report warns that sustained improvement in the fourth quarter remains contingent on regional trade stability and elevated operating costs. Given elevated costs and limited visibility on trade and shipping, the report cautions that the question for Q4 is whether the improvement can be sustained.
Businesses in the UAE, Saudi Arabia, and Kuwait saw conditions improve monthly throughout the quarter; however, UAE firms faced rising selling prices as freight and raw material costs increased. Additionally, central banks across the GCC raised interest rates by 25 basis points in mid-September, aligning with shifts in the US federal funds target range. However, with UAE businesses raising selling prices at the fastest pace since May 2011 as raw material and freight costs rose, cost pressures persisted. Central banks in the UAE, Saudi Arabia, Qatar, Bahrain and Oman raised interest rates by 25 basis points, following an increase in the US federal funds target range to 3.75 per cent to 4.00 per cent, in mid-September. In Bahrain, the government extended its support programme for smaller businesses affected by the conflict and lengthened operating-expense support from three months to six to help firms retain national staff.
