GCC hiring rose 1 per cent in the first quarter of 2026 compared with the fourth quarter of 2025, according to the Cooper Fitch Gulf Employment Index published this quarter.
Growth was concentrated in the UAE and Saudi Arabia, while Kuwait, Oman and Bahrain recorded no change and Qatar contracted.
The quarter began with hiring activity across most markets in January and February. Ramadan, the Eid break and an escalation of regional conflict from late February then reduced the pace through the remainder of the period.
UAE, Saudi Arabia record gains while Qatar is only market to contract
The UAE recorded 1 per cent growth, with business conditions in the non-oil private sector reaching a 12-month high in February. As the quarter continued, the escalation of regional conflict affected aviation, hospitality and inbound activity, and hiring slowed.
Saudi Arabia posted 0.5 per cent growth. Government investment and fiscal policy continued to support business confidence, and non-oil sectors expanded through much of the quarter. Hiring translated into net headcount growth, though Ramadan and uncertainty toward the end of the quarter reduced the rate of conversion.
Qatar was the only market to contract, declining 1 per cent. Disruptions to air corridors and logistics networks affected confidence in the short term. The medium-term outlook remains linked to ongoing LNG investment, but the quarter saw a pause in hiring.
Kuwait remained flat. Growth expectations had been softening, and external pressures further reduced business confidence. Hiring remained limited with no appetite to expand headcount.
Oman was unchanged at 0 per cent. The market maintained a reform-driven trajectory with low inflation, stable output and improving fundamentals, but lacked the demand needed for hiring growth.
Bahrain also held flat. Financial services anchored economic activity, but hiring decisions outside that sector remained on hold.
HR and sales & marketing lead sector growth at 9%
HR was among the sectors with the largest gains, up 9 per cent quarter-on-quarter. Demand was recorded across leadership, learning and development, talent management and employee relations. In the UAE, Emiratisation requirements drove hiring. Activity slowed toward the end of the quarter.
Sales and marketing also grew by 9 per cent, with demand focused on revenue-generating roles in manufacturing, retail and telecom. Sectors such as real estate and tourism saw delayed mandates.
Supply chain hiring increased by 6 per cent, driven by pressure on logistics, procurement and regional operations. Organisations prioritised continuity and disruption management across multi-market networks.
Legal hiring rose 6 per cent, with demand across regulatory, compliance and transaction support functions. Organisations remained commercially active and tightened governance.
Cyber roles grew 6 per cent, with demand in threat intelligence, identity, application security and security operations centre functions. As organisations expanded digital operations, security coverage remained a priority.
Investment hiring rose 5 per cent, though mandates moved more slowly and capital deployment became more selective. Scrutiny increased, resulting in what the report described as disciplined growth rather than broad expansion.
Software hiring increased by 5 per cent, driven by demand for ERP upgrades, workflow automation and custom application development. Professionals with skills in development, AI integration and data engineering were in demand.
Real estate hiring increased by 4 per cent, sustained by committed development pipelines and government-backed projects. Large-scale and public-sector developments continued hiring, while some private-sector roles were paused.
Manufacturing hiring increased by 4 per cent, with demand focused on production efficiency, maintenance, reliability and cross-functional profiles. Execution was prioritised over expanding capacity.
Public sector hiring increased by 3 per cent, driven by government programmes and long-term development agendas. Government-linked roles remained a source of demand throughout the quarter.
Digital, data and AI hiring rose 2 per cent, with demand focused on implementation rather than experimentation. Data engineering, governance and applied AI roles drove activity as organisations moved toward embedding AI into existing operations.
GRC (governance, risk and compliance) increased by 2 per cent, supported by regulatory tightening. Demand remained in compliance and risk functions, particularly in digital assets and financial regulation.
Energy hiring falls 12% in largest decline across all sectors
CEO hiring, finance and cloud all recorded no change in the quarter. Boards prioritised stability over new leadership mandates. Finance processes slowed during Ramadan, with longer approval cycles. Cloud hiring reflected a shift from building new environments to managing existing infrastructure.
Senior finance hiring declined by 1 per cent, with fewer leadership mandates and some roles deferred.
Strategy hiring declined by 2 per cent. Organisations focused on delivering existing initiatives rather than launching new transformation programmes.
Mining hiring declined by 4 per cent, as project timelines extended and investment decisions became more cautious. Companies reduced non-critical hiring.
Banking hiring declined by 6 per cent, with the slowdown most visible in investment, lending and growth roles. Institutions focused on risk management, regulatory compliance and balance sheet discipline. Core functions remained active, but hiring outside those areas slowed.
Energy declined 12 per cent, the largest fall across all sectors. Geopolitical uncertainty, infrastructure sensitivity and shifting investment timelines all contributed to delayed mandates and slower decision-making.
Geopolitical uncertainty identified as primary risk to Gulf growth
The IMF and major financial institutions identified geopolitical uncertainty as the primary downside risk to near-term growth in Q1. JPMorgan reduced its GCC non-oil growth forecasts due to the conflict, and Goldman Sachs revised its global outlook, citing oil price disruption and increased uncertainty. Brent crude briefly exceeded $110 per barrel, the highest since the pandemic, adding inflationary pressure.
The Cooper Fitch report noted that the broader 2026 outlook remains positive in the GCC. Non-oil sector expansion continues, diversification agendas are progressing and government balance sheets are strong. The quarter tested this resilience but did not undo the momentum built through the second half of 2025.
The 1 per cent growth in Q1 2026 follows a period of recovery and acceleration. The GCC recorded -4 per cent in Q2 2024, followed by 6.5 per cent in Q3 2024, 2 per cent in Q4 2024, 1.5 per cent in Q1 2025, 1 per cent in Q2 2025, 1.3 per cent in Q3 2025 and 2.6 per cent in Q4 2025. The Q1 2026 figure represents a slowdown from the 2.6 per cent recorded in the previous quarter.
The report concluded that the market ends Q1 on stable ground, with the conditions that drove growth through 2025 largely intact. Whether that translates into renewed hiring momentum will depend on how quickly confidence returns in the coming quarter.
