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Middle East Edition
11th September 2026
 
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THE HOT STORY

Emiratisation focus shifts to retention

UAE employers are increasingly moving beyond Emiratisation hiring targets to focus on retaining and developing national talent. A Hays survey of 531 UAE employers found 42% planned to hire Emiratis this year and 55% already employed UAE nationals. Private-sector Emirati employment has risen sharply, exceeding 141,000 people across 28,000 companies by May 2025, alongside tighter compliance monitoring. Nicole Habchi, associate business manager for Emiratisation at Hays Middle East, said: “Retention should begin before the hiring process even starts.” Hays argues employers should define career progression, skills development, mentorship and leadership opportunities before recruitment. As competition grows, organisations offering clear long-term career paths, structured development programmes and regular career planning may be better positioned to retain Emirati professionals and build sustainable leadership pipelines.
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LEGAL

Labour violations drop in UAE

In the first half of 2026, labour violations in the UAE's private sector decreased by 15%, with nearly 500 cases referred to Public Prosecution, a 49% drop from 2025. The Ministry of Human Resources and Emiratisation (MoHRE) emphasised the importance of securing necessary permits and timely salary payments through the Wage Protection System (WPS). Non-compliance can lead to fines ranging from Dh100,000 to Dh1m. MoHRE conducted around 212,000 inspections, utilising a smart monitoring system to target high-risk establishments. The ministry aims to enhance compliance and promote a stable work environment.
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WORKFORCE

UAE: The new career hotspot

The UAE is becoming a prime destination for global professionals, driven by investment and business expansion. At the Future Workforce Summit in Dubai, experts noted a significant shift in perception, with the UAE now seen as a career destination rather than a temporary posting. Jonathan Meares, head of group talent acquisition at Emirates NBD, highlighted the region's appeal due to safety, lifestyle, and a supportive visa system. Alex Bateman, chief executive of Hanson Search Group, reported a surge in interest from professionals, reflecting the region's growing opportunities across various sectors, including technology and engineering.

Dubai's flexible work initiative shines

The Dubai Government's 'Our Flexible Summer 2026' initiative has successfully engaged 49 entities and over 24,000 employees, with 95% compliance reported. Data from the Dubai Government Human Resources Department revealed that 54% of arrangements involved flexible start and end times, while remote and hybrid work options followed. Abdullah Ali bin Zayed Al Falasi, director general of DGHR, noted the initiative's expansion reflects the need for adaptable work practices. Azza Al Marzooqi from Dubai Municipality highlighted the initiative's role in helping employees balance professional and personal responsibilities, enhancing productivity.

Rethinking job titles in UAE

As AI and automation transform the workplace, UAE employers are encouraged to prioritise skills over job titles. At the Future of the Workforce Summit, HR leaders highlighted the need for organisations to identify and develop talent based on skills. Hana Agil, HR director at Cigna Healthcare, noted that companies should view skills as the currency of the organisation. Dr Kinan Bahnasi, policy advisor, pointed out that many organisations struggle to recognise existing capabilities within their workforce. Maymee Kurian from G42 emphasised the importance of meaningful roles over mere skill checklists.
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REMUNERATION

Sharjah boosts salaries for thousands

Sharjah has announced new measures to increase the incomes of government employees, retirees, and social-support beneficiaries. The monthly decent-living benchmark will rise to Dh20,000, impacting over 6,600 families and costing approximately Dh1.187bn annually. Sheikh Dr Sultan bin Mohammed Al Qasimi stated: "There will be no employee whose salary does not increase." Additionally, 3,270 employees will receive salary increases, and a part-time work system will create 1,000 jobs for senior citizens. The emirate aims to recruit 1,200 Emiratis by the end of 2026 to meet its target of 3,000 government jobs this year.
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ARTIFICIAL INTELLIGENCE

AI: The truth behind job cuts

For two years, discussions around AI have centered on its impact on white-collar layoffs and entry-level job losses. However, a new Bureau of Economic Analysis working paper suggests that AI may not be the scapegoat many believe. The study indicates that states and industries with high AI utilization have experienced increased output and employment post-2020. "The companies using AI most are growing and hiring," said Christos A. Makridis, an associate research professor at Arizona State University. Additionally, firms that adopted AI saw a 10% increase in employee headcount, particularly in entry-level positions. The report emphasizes that while AI adoption is rising, small businesses often lag behind larger firms. To maximize AI's potential, coordinated efforts are needed to support small businesses in adopting these technologies effectively.

AI agents: Confidence vs. reality

New research from Cequence Security and Enterprise Management Associates (EMA) reveals a significant gap between enterprise confidence and actual governance of AI agents. While 94% of IT leaders believe their AI agents have appropriate access, only 33% implement least-privilege access. The study found that 65% of organisations experienced AI agents acting outside their intended scope, leading to data exposure and financial losses. Christopher M Steffen, VP of Research at EMA, noted: “The gap isn't a lack of awareness; it's between what's written down and what's enforced.” This highlights urgent governance needs as AI deployment scales.

AI's hidden dangers revealed

The rise of AI agents has introduced significant security risks, with a recent study revealing that 36% of AI add-ons contain vulnerabilities. These agents can execute malicious code without user interaction, posing a threat to sensitive information. The "Lethal Trifecta" scenario, where an agent accesses sensitive data while interacting with untrusted content, increases the risk of successful attacks. To combat these threats, organisations must adopt a multilayered defence strategy, including tiered approval processes and strict access controls. Dima Tatur, vice president of cybersecurity at Commit, emphasised the need for a proactive approach to AI security.

AI system revolutionises shift management

Digital Dubai and Dubai Police have launched an AI Assisted Shift Management System to optimise workforce deployment across government entities. This system analyses operational needs and employee skills, enabling smarter decision-making in shift management. Major General Dr Saleh Abdullah Murad stated: "We view artificial intelligence as a strategic enabler for developing our work." The system integrates planning, implementation, and monitoring, providing real-time insights into workforce distribution. Matar Saeed Al Hemeiri noted that the initiative marks a significant step in government digital transformation, aiming to enhance operational efficiency and employee experience.
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HEALTH & WELLBEING

Wellbeing boosts productivity, say leaders

At the Future of the Workforce Summit in Dubai, HR leaders emphasised the importance of employee wellbeing for productivity and organisational health. They argued that wellbeing should be a business priority, not just a wellness initiative. Dr Mansoor Habib from du highlighted the need to view employees as "true capital". Ruediger Heim from Albatha Group warned about "presenteeism", where employees are physically present but mentally unwell, affecting overall performance. Sandi Coleman from Eli Lilly noted rising health costs, urging HR leaders to adopt a holistic approach to employee health and wellbeing.

UAE's employers urged to tackle obesity now

New research indicates that obesity could cost the UAE up to $1.5bn in healthcare by 2031. Dr. Sara Al Dallal, president of the Emirates Health Economics Society, highlighted the connection between health and productivity at the Future of Workforce Summit. She noted that one in three adults in the UAE are living with obesity, which leads to chronic diseases and presenteeism. Thomas Flynn from Whiteshield stated that reducing obesity rates could significantly improve GDP and healthcare spending. Both experts emphasised the need for collective action from employers, government, and society to address this issue.
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DIVERSITY, EQUITY & INCLUSION

Dhofar job fair boosts employment for all

The Ministry of Labour in Dhofar Governorate hosted a job fair aimed at persons with disabilities, featuring over 100 job opportunities from 50 private sector companies. Dr Abdullah bin Hamoud al Harthi, under-secretary for Persons with Disabilities Affairs, inaugurated the event. Nasser bin Salim al Hadhrami, director-general of the Directorate-General of Labour, highlighted the fair's role in fostering direct engagement between job-seekers and employers. The initiative aims to empower individuals with disabilities, aligning job opportunities with their skills and the needs of the labour market, thereby promoting inclusivity and productivity.
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STRATEGY

Dubai's HR leaders aim to drive innovation

Abdullah Ali bin Zayed Al Falasi, director-general of Dubai Government Human Resources Department, has shaped workforce policy, including a flexible summer working model for over 24,000 employees. Faisal Saeed Binbuti Al Mheiri leads HR transformation across the UAE federal government, serving over 50,000 employees with an AI agent. Other notable leaders include Dominic Keogh-Peters of Galadari Brothers, who focuses on talent development, and Maymee Kurian of G42, who integrates AI into workforce transformation. Each leader is driving significant changes in their respective organisations, enhancing employee engagement and organisational culture.
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CORPORATE

Egypt sees surge in new companies

In the first half of 2026, Egypt established around 26,500 new companies, marking a nearly 20% increase from H1 2025. The total issued capital rose by 12.1% to approximately EGP 97.5bn, with domestic contributions making up 88% of this amount. The bulletin from the Ministry of Investment and Foreign Trade also reported 1,262 free-zone projects, creating about 253,000 jobs. Minister of Investment Mohamed Farid Saleh said: "The periodic bulletin enhances the availability of up-to-date information and data on investment and foreign trade indicators." The report serves as a baseline for future comparisons.
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INVESTMENT

UAE and Germany strengthen strategic ties

During Sheikh Mohamed bin Zayed Al Nahyan's state visit to Germany, both nations agreed to enhance their strategic partnership. The leaders established a Strategic Dialogue to strengthen cooperation in security, technology, and investment. They signed a Joint Declaration of Intent to form the German-UAE Investment Council, aiming to boost bilateral trade, which reached $15.5bn in 2025. Sheikh Mohamed announced a €40bn investment package in Germany, focusing on advanced digital infrastructure. Both leaders condemned Iranian aggression and reaffirmed their commitment to peace in the Middle East and Ukraine.
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INTERNATIONAL

California leads in worker protections

According to Oxfam's 2026 Best States to Work Index, California, Washington, D.C., and New York are the top states for worker protections, with minimum wages at least double the federal rate of $7.25. Cameryn Cobb, Ph.D., a social scientist at Oxfam America, said, “These states have continuously tried to meet the moment and pass policies to make sure that their workers are taken care of.” The index evaluates states based on wage scores, worker protection policies, and rights to organize. Notably, caregiver protection has been added to the list, addressing the needs of the “sandwich generation.” Cobb emphasized that states with strong worker rights also show better quality of life indicators, stating: “They have less people in poverty... a higher GDP per capita.” Raising the federal minimum wage, last increased in 2009, is also suggested as a necessary policy change.

Graduate job market faces tough times

Nearly half a million graduates entered the workforce this summer carrying average student debt of £47,730, while graduate vacancies are forecast to fall 7% in 2026. Employers now receive about 140 applications per graduate job, compared with 38 two decades ago, and increasingly use online tests and one-way virtual interviews to manage demand. Graduates describe the process as lengthy, impersonal and uncertain, with 35% believing AI is damaging their career prospects. However, employers including Accenture argue AI could instead shift junior roles towards higher-value work. Raena Connelly, Accenture’s UK and Ireland head of HR, said: “We see AI changing early careers rather than diminishing them.” Universities are also expanding placements, internships and careers support as students increasingly view degrees as routes to employment. Employers continue to emphasise critical thinking, judgment, communication and other human skills, while economic growth remains central to improving graduate opportunities.
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AND FINALLY...

AI race sparks a human exit

Jacob Coxon, a 27-year-old researcher, has resigned from Anthropic, citing safety concerns over AI development. He accused both Anthropic and OpenAI of irresponsibly racing towards self-improving superintelligence, which he believes could pose existential risks. Coxon stated: "The people building AI earnestly believe that it could kill us all by the end of the decade." His resignation follows a trend of AI employees voicing similar concerns, with nearly 1,400 workers previously signing a letter advocating for stronger regulations and a slower development pace. Anthropic acknowledged the risks but continues its work on AI models.
 
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