A peace agreement between the US and Iran, expected to be signed in Switzerland on Friday, is offering fresh hope to UAE businesses and jobseekers after months of uncertainty caused by regional tensions.
While the UAE remained economically resilient throughout the conflict, businesses faced higher operating costs, disrupted trade routes, softer tourism sentiment and delays in investment decisions as tensions escalated across the region. Many employers adopted a cautious approach, slowing expansion plans and postponing non-essential hiring.
The development comes as US President Donald Trump announced that the Strait of Hormuz would be reopened and the US naval blockade of Iran would end — a move that could ease pressure on trade routes, supply chains and investment sentiment across the Gulf.
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Recruiters and HR leaders say the agreement could help restore employer confidence, prompting companies to revisit recruitment plans that were put on hold, particularly in sectors closely tied to trade, infrastructure and economic growth.
Delayed hiring plans begin to return
According to Nicki Wilson, Executive Director of Genie Recruitment, employers are showing renewed confidence, even though the effects of recent months are still being felt.
“There will still be an element of caution as the impact of the past few months has affected cash flow, annual revenues, tourism, and even perceptions of the region among employers and talent,” she said, adding that her firm has already observed a steady rise in hiring activity.
Wilson noted that recruitment never fully stopped, but many organisations became more selective in their hiring decisions. Improved regional stability, she said, is likely to encourage businesses to move ahead with plans that had been put on hold.
“There is still a long road ahead, but this is certainly a positive step that should encourage businesses to invest in growth again.”
She expects some vacancies that were paused during the uncertainty to return to the market in the coming months. However, she cautioned against expecting an immediate hiring boom.
“Rather than large scale recruitment drives, we are likely to see employers hiring gradually and focusing on critical roles first while they assess how the market continues to recover.”
Logistics, construction, healthcare lead recovery
Industry leaders believe the impact of improved stability will vary across sectors.
Wilson said logistics and construction could respond relatively quickly as investment projects regain momentum and regional trade activity strengthens. The educator sector meanwhile, has remained comparatively resilient throughout the period.
For Avinav Nigam, Founder & CEO of TERN Group, confidence has already started returning.
“What we are seeing on the ground is that employer confidence has shifted noticeably in the last few weeks. Conversations that were stalled are moving again and hiring plans that were deferred are being reactivated.”
Nigam believes healthcare could emerge as one of the strongest hiring sectors, particularly following the UAE’s announcement of universal national health insurance across all seven emirates.
“The next fiscal cycle will not just see a revival in healthcare hiring. It will see a surge.”
He stressed that healthcare has remained largely insulated from regional disruptions.
“Healthcare is different, it never stopped. Even through the conflict, healthcare kept hiring.”
The reopening of the Strait of Hormuz is also expected to have a direct effect on logistics employment.
“After healthcare, logistics moves quickly, the Strait of Hormuz reopening has an almost immediate effect on supply chain hiring.”
Nigam also notes that education, however, may take longer to respond because hiring is closely linked to expatriate family relocation decisions and student enrolment trends.
Recovery expected to be gradual, confidence-led
Shabeel Ummer, Head of HR at V Group International, expects hiring activity to improve steadily rather than dramatically.
“Because of strong linkages to commerce, investment, and expatriate growth, UAE hiring is likely to steadily improve with regional stability, with logistics, construction, and education leading the way.”
He said some employers have already begun reviewing recruitment plans that were postponed during the uncertainty, particularly in sectors such as logistics, construction, hospitality and professional services.
“Recruiting is gradually moving from freezes to phased recruitment, requiring long-term stability for wider growth.”
Nageeba Suleman, Sr Manager, People and Culture, Hotpack also sees stronger hiring momentum ahead as business demand increases.
“Looking ahead, we anticipate stronger hiring momentum in Q2 and beyond. Market demand is growing, and our people requirements will reflect that growth.”
She added that companies will continue prioritising quality over volume when it comes to recruitment.
“The focus will be on ensuring every hire contributes meaningfully — the right person, the right role, the right moment.”
Source: Khaleej Times