The shift comes as companies navigate what the IMF describes as “persistent uncertainty” driven by trade policy tensions and elevated economic volatility, forcing businesses to prioritise talent acquisition in areas that directly protect revenue streams and drive operational efficiency.
“In 2025, we’re not seeing hiring stop, but we are seeing it shift,” said Jonathan Holmes, Managing Director for the Middle East, Turkey and Africa at Korn Ferry, the global executive search firm.
“Industries such as information technology, financial services, and consumer staples continue to demonstrate resilience during periods of economic uncertainty, according to Holmes, who noted these sectors have consistently posted strong financial results over the past five years while embracing disciplined risk management and forward-looking talent strategies.”
Digital transformation drives demand
The accelerating push for digital transformation continues to create robust demand for professionals in artificial intelligence, cybersecurity, data analytics, and cloud computing, Holmes said, citing findings from Korn Ferry’s CHRO Survey 2025, which polled 750 HR leaders globally.
“These [roles] are central to business continuity and long-term competitiveness,” he explained.
According to the survey, nearly 42 per cent of Chief Human Resources Officers are prioritising investments in AI for HR functions, though only 5 per cent feel fully prepared to implement such technologies effectively.
In the United Arab Emirates and Saudi Arabia, interim hiring has gained significant traction as firms seek operational flexibility during uncertain times. “Senior contract-based talent is being deployed for critical roles in finance, digital, HR, and transformation, often to manage change or fill gaps during restructuring,” Holmes said.
This trend toward agile talent models reflects what recruiters describe as a fundamental shift in corporate hiring philosophy, moving away from traditional permanent hiring toward more flexible workforce strategies that can adapt quickly to market fluctuations.
“Anything tied to efficiency or growth is being prioritised — digital product roles, operations, revenue-focused marketing, and process improvement,” said Justin McGuire, founder and CEO of MCG Talent, a Dubai-based recruitment firm. “Companies are being cautious, but they’re still hiring for business-critical positions.”
Skills-first approach to recruitment
Across sectors, traditional CVs are rapidly losing ground to skills-based hiring models, with employers increasingly relying on assessments, work samples and micro-credentials rather than academic qualifications or years of experience.
“Companies are moving away from job titles and pedigree,” McGuire explained. “They want people who can deliver. Adaptability, commercial thinking and hands-on experience are the traits that matter.”
Korn Ferry’s research indicates this skills-first approach has become particularly pronounced in technology and finance sectors, where nearly 24 per cent of survey respondents identify finding the right skills as a top challenge for 2025.
The trend is influencing both permanent and interim hiring patterns, with employers adopting what industry experts term “agile talent models” to manage costs while maintaining the capability to respond quickly to market shifts.
Middle East finance sector defies global slowdown
While global financial services firms typically experience early impacts during economic downturns, the Middle East sector is demonstrating unusual resilience, according to specialists in financial services recruitment.
“There’s been a steady flow of hiring across investment roles, compliance and risk functions,” said George Sames, Managing Director at Oneira Talent Solutions, a firm specialising in financial services placements. “Private equity and private credit markets are active, and there’s rising interest in sustainable finance and ESG-linked positions.”
Sames added that this regional stability is partly due to the Middle East’s unique funding structures and capital base. “Much of the capital here is proprietary — from family offices, domestic firms, or government entities — so there’s more agility and less reliance on external investors,” he said.
This contrasts sharply with Western markets, where deal flow has slowed significantly. “In London, deal flow is slow, hiring is cautious, and sentiment is low,” Sames noted. “The Gulf is seen as a growth market with fewer external pressures.”
The continued influx of international firms establishing operations in financial hubs like Dubai and Riyadh is creating sustained demand for regulatory expertise and compliance professionals.
“If you’re a business setting up in DIFC (Dubai International Financial Centre) or ADGM (Abu Dhabi Global Market), compliance isn’t optional, it’s a legal requirement. That’s keeping hiring steady,” Sames said.
Despite employers’ focus on adaptable talent, candidates entering the Middle East job market are becoming increasingly selective about opportunities.
“Compensation is no longer the only driver,” Sames said. “International professionals are weighing things like reputation, leadership quality, and long-term strategy when choosing where to go.”
This shift is particularly pronounced among mid-to-senior level hires, many of whom are leaving softer Western markets for opportunities in the Gulf. The change reflects a broader shift in professional priorities, with career sustainability and organisational stability gaining importance over purely financial considerations.
Leadership requirements shift in traditionally stable sectors
Even in sectors historically considered recession-proof, such as healthcare and consumer staples, corporate boards are reassessing the leadership capabilities required for success in an uncertain environment.
“Operational efficiency is no longer enough,” Holmes explained. “Organisations want leaders who understand digital transformation, workforce strategy, and cultural cohesion.”
The most sought-after leadership traits now include digital savvy, the ability to build inclusive and future-ready teams, and experience managing large-scale transformation initiatives. In the Middle East, these expectations are extending into the public sector, where governments are investing heavily in next-generation digital services and new delivery models.
Korn Ferry data shows that more than one-third of CHROs now spend the majority of their time leading transformation efforts, with 56 per cent feeling their companies are not sufficiently adaptable to change.
While hybrid and remote work arrangements remain fixtures of the modern employment landscape, recruitment specialists caution that location flexibility does not automatically translate to job security.
“Visibility of impact matters more than location,” McGuire warned. “Remote roles open up global competition. If your value isn’t clear, someone cheaper or closer to headquarters can replace you.”
In the financial services sector, remote work adoption has been notably limited. “Hybrid setups exist, but they’re not a major factor in hiring decisions,” Sames said. “This is still fundamentally a face-to-face industry.”
Essential services maintain stability
Beyond finance and technology, several other sectors continue to demonstrate recession-resistant characteristics.
“Government, education, healthcare, logistics… these sectors hold firm because they’re essential and often backed by stable funding,” McGuire said. “Roles tied to continuity and public-facing operations remain active even during slowdowns.”
These sectors benefit from their essential nature and typically stable funding sources, whether from government budgets or consumer necessity. Even during economic contractions, demand for healthcare services, educational support, and logistics infrastructure tends to remain relatively stable.
What AI means for HR roles
The role of Chief Human Resources Officers is evolving rapidly as organisations grapple with workforce challenges. According to Korn Ferry data, more than one-third of HR leaders now spend most of their time managing enterprise-wide transformation initiatives.
“Growth and cost efficiency are top priorities, but nearly 40 per cent of HR leaders say they don’t have enough time to plan for the future workforce,” Holmes said.
This represents a significant risk, particularly as artificial intelligence and automation continue to affect job requirements across industries. “Reskilling isn’t a side project, it’s a strategic imperative,” he said.
Regional differences in AI preparedness are becoming apparent, with Korn Ferry’s Workforce 2025 survey indicating that upskilling programs for AI are more widespread in the Middle East than in Europe or North America. “That’s giving this region a first-mover advantage,” Holmes said.
The current hiring environment is unfolding against a backdrop of global economic challenges. The IMF’s July 2025 World Economic Outlook projects global growth at 3 per cent for 2025 and 3.1 per cent for 2026, describing the global economy as showing “tenuous resilience amid persistent uncertainty.”
Trade policy tensions and elevated economic uncertainty continue to influence business decision-making, with companies prioritising investments in areas that can provide competitive advantages during challenging periods.
Middle East’s regional advantages
As economic pressure mounts globally, the Middle East’s labour market appears increasingly focused on strategic reinvention rather than defensive retrenchment.
The region’s unique position — combining substantial capital resources, government investment in diversification, and an influx of international talent — is creating opportunities even as other markets contract.
“Markets change fast. The people who stay secure are the ones who stay useful,” McGuire concluded. “If you’re not thinking about how to make yourself indispensable, you’re already at risk.”
