Salaam - Job Market Tightens in the Gulf as More People Move In
As-salamu alaykum. It seems salaries across the UAE and wider Gulf are under pressure this year because a large number of newcomers are arriving and competing for jobs, according to recruitment experts.
Hiring picked up slightly in the third quarter as business activity rose, but population growth of around 5–6% a year means many jobseekers now outnumber available roles. Some new arrivals accept very low pay just to get started, and sometimes people with professional backgrounds take much lower-level work - for example, a dentist ending up in real estate - just to secure employment. That makes it harder for existing employees to argue for fair pay increases.
There is a surplus of skilled professionals in several areas, especially at middle and senior management levels, though demand remains for senior finance, real estate, investments and some public-sector roles. The arrival of ultra-high-net-worth individuals and founders setting up businesses is creating new positions, but it is also pushing up commercial costs and shifting where companies choose to base themselves in the region.
Saudi Arabia is seeing steady hiring in manufacturing, supply chain and senior finance and may generate more jobs as big projects continue. On average, some roles in the kingdom currently pay slightly more than similar jobs in the UAE. Other Gulf countries show mixed activity: Qatar and Oman have modest or flat hiring, Kuwait and Bahrain have softened hiring as firms control costs, while markets with active project pipelines are picking up more noticeably.
Across the region, demand grew for roles in real estate, technology, digital and AI, cloud and software, public sector and investments. Senior finance roles saw a notable uptick, while consulting roles faced cuts as advisory budgets tightened.
Employers remain cautiously optimistic - many are focused on operational efficiency and only adding staff when project milestones require it. High borrowing costs and tight credit have slowed private-sector expansion, so any future easing of rates could help hiring pick up further.
In short: wa alaikum as-salam - if you’re job hunting in the Gulf, expect more competition and pressure on salaries for now, but also pockets of strong demand depending on sector and country.
https://www.thenationalnews.co