The United Arab Emirates (UAE) job market in 2025 remains robust. Moreover, companies across various sectors are continuously hiring new talent to meet the increasing demand. However, businesses are now adopting caution to prioritize cost control while recruiting fresh talent to match the growth, as they have to factor in the corporate tax payments.
Similarly, businesses are taking the same caution to reduce the cost of recruitment and focus on hiring the top employees. However, they are doing it when it comes to tech skills, and employers want to pay more. Keep reading to find out what cautions the companies are taking.
Temporary Hiring Slowdown Amid US Tariff Concerns
In April 2025, the concern emerged across the UAE and Gulf companies about the potential impact of the US’s new tariffs on imports. This problem has led many significant companies to pause their recruitment process.
Industry experts noted that there was a brief stop in the recruitment activities as companies waited to see how the geopolitical and economic ripple effects would influence regional trade and operations. The reason behind this effect is due to the new US tariff plan and rising tensions involving Iran.
Fortunately, the disruption to the hiring process was short-lived. Hasan Babt (managing director at consultancy firm Tuscan) said, “There haven’t been any major changes in demand for the new talent.” Moreover, he also shared that alertness in hiring was limited to a few weeks. After the concern ended, the hiring process resumed gradually, which highlights stability in the job market in the UAE.
Salary Growth Remains Subdued in Key Sectors
2025 is going to be a year of minimal growth when it comes to salaries in the UAE and Saudi Arabia across certain industries. According to the experts, hospitality, leisure, and heavy manufacturing are witnessing a fair growth range between 0 and 3 percent in 2025.
This subdued speed is largely because of the stable supply of skilled talent and saturated job markets in these industries. Moreover, employers are now focusing on hiring employees with more attention by managing costs without a salary hike. The same thing is happening in the general back-office manager roles.
It is the nature of the comments given by the HR managers and job consultancies over how UAE companies’ hiring proceeds in the first half of 2025. We could expect that the situation could become better in the second half.
UAE Job Market Faces Intense Competition, Limited Salary Leverage
Reports from the Manpower Group suggested that businesses in the UAE transport and logistics sector are expected to see a surge in job openings soon. However, there are too many candidates competing for a limited or reduced number of positions.
Therefore, “it has become hardly possible to get the higher salary package,” said the HR manager. The one source said to the Gulf News that many companies have realized that AI and automation will take away more positions soon. It’s not distant now.
For those aiming to find jobs in UAE, the competition has intensified, making it essential to upgrade skills and stay informed about the latest job trends.
Factoring in tax on UAE companies hiring
The major new factor influencing the hiring process of companies is the introduction of the corporate tax. The business operating from January to December financial year is required to pay the first return in September 2025. In other words, companies with limited funds to spend are focusing on being cautious in the hiring process.
According to the financial experts and recruiters, the last quarter of this year will be the reality check for businesses on their costs, like taxes, and what they are hiring for the next year.
Top Talent Still Commands Premium Pay in Tech and Emerging Sectors
Despite overall hiring caution, the UAE and Saudi Arabian companies are willing to pay more to the top talents, including people with knowledge of tech advancement and AI. Babat said that this is a war of talent. He further said that the war is in other sectors rather than technology, like infrastructure, tourism, etc.
The Tuscan report revealed that there was an increase in sign-up bonuses and retention bonuses in the UAE and KSA in 2024. Moreover, companies are willing to buy out a candidate’s uninvested equity from the previous employers.
Companies are also giving premium expatriate packages in Saudi Arabia, particularly in Riyadh. These packages often include high base pay, travel allowance, etc.
For those who have recently completed their UAE education, focusing on emerging sectors like tech and infrastructure can greatly improve the chances to find jobs in UAE that offer better pay and career growth.
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