The survey, which included 100 senior business decision-makers in the UAE, highlights a mixed outlook for the country’s job market. While over 60% of business leaders expect to see an increase in employee headcount, 39% cite global economic instability—marked by elections and fluctuating inflation—as a significant challenge impacting business performance and hiring decisions.
Despite these challenges, 67% of UAE business leaders are confident about their growth prospects through 2024 and into 2025. This optimism is fueled by increased demand for products and services (66%), expanding business opportunities (58%), and a more favourable economic situation (50%).
Gareth El Mettouri, Director – Middle East at Robert Half, commented that the UAE economy is booming, and businesses are eyeing growth. However, global uncertainty is affecting hiring intentions. He added that the upcoming elections in the US and UK, along with unstable interest rates, are causing many businesses to adopt a cautious approach, leading to hiring freezes and delayed recruitment activity.
The report indicates that one-third of business leaders are postponing hiring decisions until after the elections and until interest rates stabilize. These global issues have led 29% of companies to implement hiring freezes, potentially hampering their growth potential.
Furthermore, 37% of businesses foresee a challenge in finding technical skills over the next year. Yet, many companies (33%) are not planning to increase salaries, and 30% may forgo bonuses, risking employee retention as workers may seek better opportunities elsewhere.
El Mettouri warned that there could be a highly competitive market once hiring freezes lift, particularly if stagnant salaries push employees to seek changes. Despite these concerns, most business leaders remain optimistic about increasing their workforce in the coming year.
