The UAE recruitment market is rebounding strongly in October 2026. The non-oil private sector is growing at its fastest pace in 20 months, employers report the strongest hiring outlook in Europe and the Middle East, and Emiratisation is moving into its year-end deadline. This monthly UAE recruitment market update brings together the latest PMI survey data, ManpowerGroup hiring intentions, Central Bank of the UAE labour market data and MoHRE policy updates, and explains what they mean for employers hiring in Dubai, Abu Dhabi and across the Emirates.

Last updated: 27 October 2026. Our next UAE update follows in November 2026.

UAE recruitment market at a glance: October 2026

  • The S&P Global UAE PMI held at 55.3 in September 2026, matching August’s 20-month high, with staffing numbers rising modestly (S&P Global, via The National and Emirates NBD Research).
  • UAE employers report a Net Employment Outlook of 41% for Q4 2026, the strongest in Europe and the Middle East and well above the global average of 29% (ManpowerGroup).
  • Employees covered by the Wages Protection System rose 11.2% year on year in June 2026, while average wages fell 2.3% (Central Bank of the UAE).
  • Emiratis working in the private sector passed 190,000 in the first half of 2026 (MoHRE, via WAM).
  • Companies with 50 or more employees must add a further 1% Emiratisation growth in skilled jobs in the second half of 2026, taking the total to 2% by the end of the year (MoHRE).

UAE labour market statistics: the key numbers

Measure (UAE) Latest figure Period Source
UAE PMI (non-oil private sector) 55.3 September 2026 S&P Global
Dubai PMI 54.5 (up from 54.1) September 2026 S&P Global
Net Employment Outlook 41% (up 24 points on Q3; not yet seasonally adjusted) Q4 2026 ManpowerGroup
Employees covered by the WPS +11.2% year on year June 2026 Central Bank of the UAE
Average wage down 2.3% year on year June 2026 Central Bank of the UAE
Workforce growth 12.4% in 2025; 2.2% in the first half of 2026 2025 and H1 2026 MoHRE Labour Market Observatory
Emiratis in the private sector more than 190,000 First half of 2026 MoHRE

Is hiring in the UAE picking up?

Yes. The S&P Global UAE PMI stayed at 55.3 in September 2026, the same as August, well above the 50 mark that separates growth from contraction. Higher output requirements encouraged companies to expand both purchasing and employment, with staffing numbers rising modestly. S&P Global’s David Owen said the reading was “another indication that the non-oil economy has moved past the midyear slowdown linked to the Middle East conflict” (Source: The National, 5 October 2026). Emirates NBD Research confirmed that the September reading matched August’s 20-month high (Source: Emirates NBD Research, October 2026).

Dubai is moving in the same direction. The Dubai PMI rose to 54.5 in September 2026 from 54.1 in August, the fastest growth so far in 2026, and employment in the emirate increased (Source: The National, 5 October 2026).

The recovery follows a difficult middle of the year. The Central Bank of the UAE reported that the UAE PMI rose to 52.7 in July 2026 from 50.8 in June, and that employment in the non-hydrocarbon private sector “returned to growth” in July (Source: Central Bank of the UAE, Quarterly Economic Review, September 2026).

What are UAE employers planning for Q4 2026?

Hiring intentions have rebounded sharply. ManpowerGroup’s survey of 557 UAE employers found a Net Employment Outlook of 41% for October to December 2026, up 24 points on the previous quarter but down 4 points on a year earlier. 51% plan to increase staff, 37% expect no change and 10% expect reductions. The UAE recorded the strongest outlook in Europe and the Middle East, well above the global average of 29% (Source: ManpowerGroup UAE, Q4 2026).

By sector, Finance and Insurance leads at 60%, followed by Hospitality at 59%. Professional, Scientific and Technical Services reached 53%, up 25 points year on year, making it the most improved sector. Information sits at 47%, Utilities and Natural Resources at 46%, Trade and Logistics at 43% and Construction and Real Estate at 38%. Organisations with 1,000 to 4,999 employees report the strongest outlook at 70% (Source: ManpowerGroup UAE, Q4 2026).

Nearly half of UAE employers say entry-level hiring is increasing compared with 2025, although some are shifting towards experienced candidates because of cost pressure, and AI-driven automation is absorbing some early-career tasks. Employers planning cuts cite geopolitical challenges (Source: ManpowerGroup UAE, Q4 2026).

What is happening to UAE jobs and salaries?

Employment is growing faster than pay. As of June 2026, the number of employees covered by the Central Bank’s Wages Protection System was up 11.2% year on year, while the average wage fell 2.3% year on year on a three-month moving average. The Central Bank said continued demand for labour “has not yet generated significant upward wage pressure” (Source: Central Bank of the UAE, Quarterly Economic Review, September 2026).

MoHRE’s Labour Market Observatory shows workforce growth of 12.4% in 2025 and 2.2% in the first half of 2026, while establishment growth was 7.8% in 2025 and minus 0.4% in the first half of 2026 (Source: MoHRE Labour Market Observatory, July 2026).

Costs are rising for businesses. UAE companies raised selling prices at the steepest rate since May 2011 in September 2026 (Source: The National, 5 October 2026). The Central Bank forecasts UAE inflation of 2.4% in 2026 and non-hydrocarbon GDP growth of 1.3% in 2026, rising to 4.9% in 2027 (Source: Central Bank of the UAE, Quarterly Economic Review, September 2026). For employers, that means salary expectations need watching closely as living costs rise, even though average pay has not yet moved up.

What are the Emiratisation targets for 2026?

Private sector companies with 50 or more employees must achieve 2% annual growth of Emirati employees in skilled positions. Companies with 20 to 49 employees in specified economic activity sectors must recruit at least one UAE national and retain those already employed (Source: MoHRE, Emiratisation targets).

For 2026, companies with 50 or more employees had to achieve 1% growth in skilled-job Emiratisation by 30 June 2026, and need an additional 1% in the second half of 2026, bringing overall growth to 2% by the end of the year. Financial contributions have applied from 1 July 2026 to establishments that missed their first-half targets (Source: WAM, 7 May 2026).

Progress is strong. MoHRE reported that 95% of companies subject to Emiratisation policies met their first-half 2026 targets, nearly 32,000 companies now employ UAE citizens, and the number of Emiratis working in the private sector exceeded 190,000. The Nafis programme has been extended until 2040 (Source: WAM, 20 July 2026).

Sector-specific programmes are expanding too. On 23 October 2026 the Abu Dhabi Department of Education and Knowledge launched an Emiratisation Policy for Private Education, which introduces Emirate-level Emiratisation targets for teaching positions in Abu Dhabi private schools and aims to bring more than 2,000 UAE nationals into the teaching workforce over the next five years, starting with Social Studies, Arabic and Islamic Studies roles (Source: Abu Dhabi Media Office, 23 October 2026).

For a deeper guide to attracting and retaining Emirati talent, read our article on Emiratisation in 2026.

What should employers know about UAE wage rules?

MoHRE has reaffirmed that the Wage Protection System is a key pillar of the UAE labour market. Under the current approach, monitoring and notifications are sent to employers first, with administrative measures applied only after the approved timelines, and an establishment is considered compliant if it transfers at least 85% of the total wages due within the specified timeframe (Source: WAM, 4 June 2026). Reliable, on-time pay is also part of your employer brand: candidates talk, and employer review sites spread the word quickly.

Key dates to watch

  • End of 2026: companies with 50 or more employees must have achieved the additional 1% skilled-job Emiratisation growth for the second half of 2026, bringing the total to 2% for the year (MoHRE, via WAM).
  • December 2026: ManpowerGroup’s Employment Outlook Survey for Q1 2027 is published (ManpowerGroup UAE).
  • Monthly: the S&P Global UAE and Dubai PMI surveys, which give the earliest signal of private sector hiring. We will cover October’s results in our November update.

What this means for employers hiring in the UAE

  • Plan for competition in finance, hospitality and professional services. With outlooks of 53% to 60% in those sectors, strong candidates will have options. Make your employer brand and EVP clear about what you offer beyond salary.
  • Get ahead of the year-end Emiratisation deadline. Do not leave the second-half 1% target until December. Build a dedicated Emirati talent pipeline with targeted talent attraction marketing, Nafis-aligned roles and visible career development.
  • Watch salary expectations. Average pay is down while living costs are rising, so check your packages against the market before you advertise.
  • Write job ads that convert. Lead with role scope, location, benefits and progression, and make sure your job ads are optimised for the job boards and channels UAE candidates actually use.
  • Be found where candidates search. More candidates now research employers through Google and AI assistants. Recruitment SEO and AIO helps your careers pages appear in both.
  • Be ready to scale. If you plan to grow in Q1 2027, set your recruitment marketing strategy now so campaigns can launch quickly.

For a wider view of the market, read our guide to hiring in Dubai and the UAE in 2026.

The bottom line

The UAE hiring market has bounced back from its midyear slowdown. Business activity is growing strongly, employer hiring intentions are the strongest in Europe and the Middle East, and Emiratisation is moving into its year-end deadline. Employers that sharpen their employer brand, invest in Emirati talent pipelines and get their job ads right now will be best placed for 2027.

Also hiring elsewhere? Read our UK Recruitment Market Update, October 2026 and Australia Recruitment Market Update, October 2026.

Sources

Hiring in the UAE in 2027? Get in touch with RMG to talk about your employer brand, Emirati talent attraction and recruitment marketing plans for the year ahead.