The Gulf region is riding the tidal wave of megatrends shaping the world of work. Factors such as increased demand for skilled talent, nationalization programs, AI in recruitment, and rising investments in upskilling are driving a dynamic, complex, and competitive employment market.
A generally more cautious approach was adopted about hiring in 2023, with 62% of organizations reporting headcount increases compared to 67% in 2022. That said, 27% of organizations experienced significant growth, expanding their workforce by more than 10%.
Hiring in UAE in 2024
The outlook for hiring in 2024 is optimistic, as 67% of employers in the Gulf say they expect to add to their organization’s headcount. There is no variance between the Gulf’s two largest economies, with 69% of organizations in Saudi Arabia and the United Arab Emirates planning to expand their workforce this year.
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Key Trends Shaping the Future of Recruitment in MENA
1. 74% of MENA professionals agree that AI tools can help them do their job better.
According to LinkedIn’s Future of Recruiting Report, companies will begin using Gen AI to find the right job candidates and match employees with open positions..
2. 80% of MENA professionals agree that highlighting skills over degrees is a priority when searching for a new role
Skills-based hiring gains momentum, with LinkedIn data from EMEA showing it can expand the candidate pool by 10.3 times.
3. 54% of recruiting pros across the globe say quality of hire will shape recruiting over the next 5 years.
There will be a greater emphasis on finding candidates who fit roles well and contribute to long-term success.
Talent leaders will evolve into invaluable advisors for their organizations, guaranteeing that employers have effective upskilling initiatives and internal mobility programs to address crucial skill shortages and enhance employee retention.
Unemployment in the UAE
Launched in 2023, UAE's mandatory unemployment insurance attracted nearly 7 million enrollees, generating $120 million in premiums. Rising employment is expected further to fuel the insurance sector's growth in 2024.
A report predicts 4.2% GDP growth for the UAE in 2024, driven by a strong non-oil sector and reversed oil production cuts. It also forecasts moderating inflation (2.5%) and potential interest rate cuts, mirroring US policy due to the Dirham's peg.
Key takeaways
- After one year, about 6.9 million workers have enrolled in the new UAE unemployment insurance, generating USD 120m premiums.
- The UAE labor market is adding more skilled employment due to policy measures to attract talent.
- The UAE economy is forecasted to grow by 4.2% in 2024, supported by the oil and non-oil sectors.
- The growth outlook is positive, given the expected easing of oil production cuts and strong growth in construction, tourism, and infrastructure spending.
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