UAE Economic Shift 2025: Why the UAE’s Non-Oil Job Market Is Cooling

If you've been observing the UAE's job market recently, you may have noticed something different. While malls are crowded, projects are in motion, and businesses are operating but hiring that we witnessed post-pandemic appears to slow down.

But wait, this doesn't imply that the UAE economy is decelerating. On the contrary, in a number of senses, it's simply evolving and as a business owner, investor, or one looking for work, it's an experience you don't want to miss.

Why is the Non-Oil Job Market Slowing?

Following the COVID-19 years, businesses hired wildly from 2021 to 2024 to recover. But today, in 2025, they're moving into a more strategic phase. Rather than adding headcount, companies are prioritizing efficiency.

Examine what is being changed

• Technology automating boring work from artificial intelligence powered service most recently, to robot powered warehouses 

• Rising prices - rising prices is something everyone can relate to. In addition to increasing rents, overhead costs are all increasing too, including heavy labour visa worker costs. Clearly lower margins will lead to fewer hires. 

• Companies are risk cautious - post COVID would prefer to do away with a hire for example by outsourcing that to a 3rd party vendor, rather than hire an employee to do a regular task in house something like customer support. 

Meanwhile... Abu Dhabi Is Booming 

While recruitment slows down in some emirates, Abu Dhabi is leaving them behind. The capital is experiencing:

•  143% increase in real estate deals

•  Increasing non-oil exports (metals, machinery, chemicals)

•  A surge in foreign direct investment (FDI)

Massive investments in ports, industrial zones like KIZAD, and global trade agreements through CEPA. The policy of allowing 100% foreign ownership is facilitating the entry of ambitious entrepreneurs from around the globe. 

Where are the Opportunities? 

If you are investing, looking to start up, or changing careers; watch for:

• Real estate (industrial and commercial) 

• Manufacturing (Clean tech and food processing) 

• Smart logistics and AI-driven supply chains 

Ready to invest 

At E-startup, we assist in constructing the correct business in the correct location. If you're looking at Abu Dhabi's thriving free zones or need assistance with licensing and tax planning, our local specialists are ready to guide you through the process.

Let's transform today's downturn into tomorrow's chance.