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Middle East Edition
17th July 2026
 
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THE HOT STORY

AI skills surge in Gulf job market

AI requirements appeared in 3.4% of professional Gulf vacancies during the first half of 2026, nearly triple the 1.2% recorded in 2022, according to GulfTalent’s analysis of 118,000 jobs across the UAE, Saudi Arabia and Qatar. Adoption remains highly concentrated: nearly one-third of technology vacancies mention AI, compared with around one in 15 banking and audit roles. Most other industries remain at one in 30 vacancies or fewer. AI involvement also increases with seniority, reaching roughly one in 12 leadership roles. Among AI-connected vacancies, about one-third require employees to use AI, another third involve implementation, and one-quarter focus on selling AI services. Fewer than 10% involve building models. GulfTalent said AI capability is becoming a “competitive necessity” in technology, while most sectors remain early in their transition.
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ARTIFICIAL INTELLIGENCE

AI threats put executives on guard

AI companies are strengthening security as threats against executives, employees and facilities escalate alongside public anxiety about jobs, affordability and social disruption. Incidents involving Anthropic and OpenAI include attempted violence, threatening messages and demands linked to customer disputes. Liferaft recorded a sevenfold rise in digital threats between late February and May, while executive-protection spending has increased sharply at technology companies including Palantir, Oracle and Salesforce. Some leaders now travel with armed guards, and employees are discouraged from wearing corporate logos. Anthropic said it tracks concerning behaviour to identify escalation early. Industry figures acknowledge that warnings about AI-driven unemployment may have intensified hostility. Palantir chief executive Alex Karp said political unrest is the sector’s greatest challenge, warning that “none of us are going to make any money when the country blows up.” Despite public concern, companies continue developing increasingly advanced models.

Saudi leading the AI charge

Saudi Arabia is emerging as a leader in AI, according to the report “Securing Nations in the Intelligent Economy: Turning AI and Quantum Disruption into Strategic Advantage,” published by Microsoft and Accenture. The Kingdom's AI strategy integrates national economic and security initiatives through significant investments and partnerships. The Saudi Data and Artificial Intelligence Authority (SDAIA) has formed over 90 agreements with US tech firms, enhancing technology localisation and talent development. The report emphasises the importance of AI security in national defence and highlights the need for countries to invest in sovereign AI capabilities for economic competitiveness and security.

AI revolutionises Saudi cultural landscape

Saudi Arabia is set to enhance its cultural sector through AI-powered initiatives. The Ministry of Culture and the Cultural Development Fund have signed a memorandum with the Saudi Data and AI Authority (SDAIA) to explore joint AI programs. Raed bin Khalil Al Eid, a cultural innovation adviser, noted that AI's role in culture is increasingly recognised. He emphasised the need for effective implementation of these initiatives to create tangible impacts. The Ministry aims to establish a supportive environment for AI, enabling various organisations to develop innovative solutions confidently.

AI in meetings: The new norm

Lindsey Pollak, a workplace expert, has observed the growing presence of AI assistants in Zoom meetings, which she describes as making interactions feel "robotic and weird." Tessa West, a social psychologist, highlights that many workplaces lack established etiquette for using AI, leading to potential communication issues. A survey from GoTo and Workplace Intelligence found that 37% of employees use AI for tasks requiring emotional intelligence, while 35% use it for sensitive communications. Experts recommend asking permission before using AI in meetings and avoiding outsourcing "human" tasks to AI, as it can be perceived as inauthentic.
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REMUNERATION

Salary growth stalls in UAE

Salary growth across the UAE and GCC is expected to remain weak as regional conflict, softer hiring demand and an oversupply of jobseekers pressure employers. Cooper Fitch founder and chief executive Dr Trefor Murphy said earlier forecasts of 2.5% to 3% growth are no longer realistic, warning: “There’ll be no growth this year. If anything, there’ll be contraction.” He expects flat or slightly lower salaries, fewer large pay increases from job moves and reduced bonuses as companies struggle to meet growth and Ebitda targets. Business confidence is also being affected by volatile commodity markets, a paused IPO pipeline and tighter controls on discretionary spending. Adecco offers a more positive view, arguing that employers are still directing moderate increases towards high performers and business-critical roles. SVP Mayank Patel said 2026 would be characterised by “moderation and disciplined salary growth,” with some companies planning to reassess pay later in the year.
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WORKFORCE

UAE's labour market shines at BRICS

At the BRICS Labour and Employment Ministers' Meeting 2026, Dr Abdulrahman Al Awar, UAE's Minister of Human Resources and Emiratisation, highlighted the country's innovative labour market model. He emphasised the importance of public-private collaboration, agile legislation, and skills development, stating: "The UAE is home to workers from more than 200 nationalities." Over the past five years, the private-sector workforce has doubled, and women's participation has surged by 109%. The UAE is also leveraging artificial intelligence to enhance labour market services and strengthen worker protections, aligning education with future job demands.

Oman introduces new payroll rules

Oman will implement new payroll and leave-management requirements starting July 19, 2026, under the Social Protection Law. Employers must contribute 1% of each worker's wage for sick leave insurance, which covers eligible Omani and certain non-Omani workers. The Social Protection Fund will reimburse employers for leave allowances. Sick leave coverage starts after seven days, with varying compensation rates based on the duration of leave. Employers must update payroll systems and maintain accurate employee records to comply with these changes, which aim to enhance employment stability and business continuity.

Oman mandates 1% employer contribution

Oman will require employers to contribute 1% to a new Social Protection Fund starting July 19, 2026. This contribution is based on each employee's wage, with no additional worker contributions needed. The scheme aims to support eligible Omani employees and certain expatriate workers in both public and private sectors. Employers will pay full salaries for the first seven days of sick leave, with reimbursements available thereafter. The initiative is part of a broader reform under Royal Decree No. 52/2023, designed to enhance employment stability and social protection.

Oman’s drug testing proposal under review

Oman's Ministry of Health has stated that a document regarding mandatory drug screening for newly recruited employees is merely an internal discussion paper and not an approved policy. The ministry emphasised that any decision on drug testing will be made in coordination with relevant authorities. They are committed to enhancing public health and safety standards in workplaces. The ministry will announce any approved policy and its implementation phases through official channels, urging the public to rely on these sources for updates.
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HIRING

Streamlined service revolutionises domestic worker hiring

The General Directorate of Identity and Foreign Affairs (GDRFA Dubai) has launched a new digital service called 'Domestic Workers Management', streamlining the hiring process for domestic workers. This initiative consolidates nine essential procedures into a single journey, reducing the number of steps from 11 to six and cutting customer visits from six to two. The service has already processed over 10,800 transactions, saving customers Dh4.3 m and eliminating 25,676 paper documents. Lieutenant General Mohammed Ahmed Al Marri said: "What we have achieved today is the outcome of genuine collaboration."
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TRAINING & DEVELOPMENT

UAE's new framework transforms higher education

The UAE is set to enhance its higher education system with the National Framework for Licensing Higher Education Institutions, approved by Sheikh Mohammed bin Rashid Al Maktoum. This framework aims to unify licensing standards, improve governance, and streamline regulatory processes. Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, noted that the framework will reduce administrative burdens and enhance clarity in the sector. It introduces a data-driven monitoring system and emphasises accountability, sustainability, and student protection, ensuring a robust educational environment across the UAE.

UAE climbs global education rankings

The UAE has achieved 17th place in the QS World Future Skills Index 2027, maintaining its status as the top-ranked country in the region. The Ministry of Higher Education and Scientific Research (MoHESR) noted that this ranking reflects the UAE's commitment to aligning higher education with future job market needs. With an overall score of 86.5, the UAE excelled in the Economic Transformation pillar, scoring nearly 99. Dr Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, stated: "The UAE's higher education ecosystem is witnessing continuous progress," emphasising the importance of adapting educational programmes to meet global changes.

Empowering Bahrainis for leadership roles

Tamkeen has launched two new programmes, Tamakkan and Qiyada, aimed at developing Bahraini talent for leadership roles in the private sector. Tamakkan focuses on enhancing individual skills through accredited training aligned with market needs, while Qiyada encourages enterprises to hire Bahrainis in managerial positions. Tamkeen stated: "These programmes are expected to encourage greater investment in national talent by private sector enterprises." The initiatives aim to improve employment opportunities and support career advancement, contributing to Bahrain's national development objectives. Applications for training providers will open every six months.
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HEALTH & WELLBEING

Dubai's summer refreshment drive kicks off

The UAE Food Bank is distributing 2m chilled drinks, including water, juices, and ice cream, to workers in Dubai this summer. This initiative, part of the Al Freej Fridge campaign, runs until September 3 and aims to support sanitation, construction, delivery, and landscaping workers during extreme heat. Manal Bin Yaroof, Head of the Executive Team at the UAE Food Bank, emphasised the bank's commitment to humanitarian efforts. Alia Al Shamlan, Director of Ferjan Dubai, noted the campaign's positive impact on community volunteerism and giving.
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INTERNATIONAL

Obesity deepens Britain’s worklessness crisis

University of York research suggests more than 600,000 people in Britain may be unemployed because of obesity, highlighting significant consequences for productivity and public spending. Analysis of 284,258 UK Biobank participants found obesity reduced the likelihood of employment by 4.2 percentage points, with a stronger effect among men at 6.6 points compared with 2.1 points for women. Lower education levels were also linked to greater employment risks, while having a degree appeared to offer some protection. Lead author Dr Aharon Katz said: “Tackling obesity isn’t just a health imperative, it’s an opportunity to boost economic productivity.” Researchers called for targeted workplace policies that challenge discrimination and improve inclusion.  

Germany backs flexible job trials

Germany’s cabinet has approved Labour Minister Bärbel Bas’s proposal allowing employees to test a potential new job for up to four weeks, or six weeks exceptionally, without immediately resigning or accepting a permanent offer. The “job-to-job trial” is designed to move skilled workers quickly from declining industries into sectors facing shortages. Bas said workers should be able to change industries “quickly and easily” when companies cut jobs. The legislation would also make digital communication standard for unemployment benefit recipients, ending the requirement to remain available for postal correspondence. Further measures include video access to employment agencies, digital-first applications and reduced workplace-safety administration, potentially removing up to 123,000 safety officer roles in smaller businesses.  
 
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