The Gulf region is experiencing a significant surge in demand for skilled professionals, particularly in technology-driven fields. AI hiring is leading the charge, with recruiters reporting acute shortages across a range of specialized roles. This trend, coupled with rising salaries and evolving labor reforms, is reshaping the job market in the United Arab Emirates and Saudi Arabia, and impacting talent pipelines throughout the Middle East.
The Growing Demand for AI Talent
Candidate shortages are most pronounced in areas like data science, artificial intelligence implementation, leadership positions, and analytical roles, according to recent reports from recruitment firms Nadia Global and RemotePass. Beyond AI-specific roles, businesses are also struggling to find qualified candidates in software development, engineering, sales, and finance. Nadia Global reported a 65% increase in new client requests and a 25% rise in demand from existing clients, highlighting the escalating need for talent.
Demand for specific AI roles has seen substantial growth between 2024 and 2025. Data scientists experienced a 43% increase in demand, AI product manager roles grew by 37%, and AI engineers saw a 31% rise in hiring. This growth is particularly strong in the UAE and Saudi Arabia, with overall AI hiring increasing by 39% and 26% respectively.
Regional Hotspots: Dubai and Riyadh
Dubai continues to be a magnet for professionals seeking career advancement, a desirable lifestyle, and long-term wealth creation. The city’s robust tourism sector, ongoing infrastructure investments, and strong international connectivity contribute to its appeal. The Dubai International Financial Centre (DIFC) is at the forefront of this growth, now home to over 1,500 AI, fintech, and innovation companies.
These companies collectively raised over $4.2 billion, bolstered by initiatives like the Innovation Licence and the FinTech Hive accelerator. Abu Dhabi is also benefiting from diversification efforts, expanding opportunities beyond the oil sector. Meanwhile, Saudi Arabia is pursuing similar strategies, though fiscal consolidation has somewhat tempered the pace of certain projects.
Labor Market Reforms and Talent Supply
Saudi Arabia’s recent labor market reforms, specifically the replacement of the Kafala system with a contract-based framework, are significantly altering workforce dynamics. This change impacts approximately 13 million foreign workers, granting them greater freedom to change jobs and travel without requiring sponsor approval. Ian Giulianotti, executive director at Nadia Global, noted this reform empowers workers and allows for more fluid movement within the job market.
Egypt remains a crucial source of tech talent for the region, leading in hiring volume for software, engineering, data science, and quality assurance roles. Pakistan also contributes significantly, particularly in various engineering disciplines, due to its large developer base. However, the acceleration of AI hiring in the UAE and Saudi Arabia indicates a shift in where capital and advanced technology are being deployed.
Employers are increasingly focused on securing skills that deliver measurable results. Technical expertise, leadership capabilities, and proven execution experience are now highly valued in hiring decisions. Skills directly related to AI deployment, data-driven decision-making, and scalable leadership are particularly in demand, reflecting the evolving needs of the Gulf job market.
Average salary increases across the region were around 5% in 2025. Bonus payments were also common, ranging from one to six months’ salary, with the majority falling between two and three months. This indicates a competitive landscape where companies are willing to offer substantial financial incentives to attract and retain top talent. The demand for skilled workers is driving up compensation packages.
Looking ahead, the Gulf region’s focus on technological advancement and economic diversification is expected to continue fueling demand for specialized talent. Further labor market reforms and investments in education and training will be crucial to address the ongoing skills gap. Monitoring the impact of these changes, as well as the broader global economic climate, will be key to understanding the future trajectory of the Gulf’s job market and the continued growth of technology jobs.