76% of UAE employers struggle to hire as AI skills top demand: Report

With 76% of employers in the United Arab Emirates reporting difficulty filling open roles, the country continues to face significant hiring pressure even as organisations accelerate digital transformation, according to a latest report by ManpowerGroup. 

The report, '2026 Global Talent Shortage Survey', places the UAE above the Asia Pacific - Middle East (APME) regional average of 71% and close to the global average of 72%, underscoring intensifying talent scarcity across the region, particularly for artificial intelligence capabilities, now the hardest skills to source.

The findings highlight growing competition for future-ready skills as UAE organisations accelerate digital transformation and AI adoption.

UAE positioned among high-pressure markets

The survey, based on responses from more than 39,000 employers across 41 countries, including 12,193 across 10 APME markets, shows notable variation in hiring difficulty across the region.

Japan (84%) and India (82%) report the most acute talent shortages in APME, while Singapore also faces elevated pressure (data referenced within the regional cohort). The UAE, at 76%, sits firmly among the more constrained markets, while China remains the least affected both regionally and globally at 48%.

The data underscores a fragmented regional landscape in which workforce availability is increasingly shaped by local economic dynamics, digital maturity, and demographic trends.

AI skills now the hardest to find

For the first time globally, AI capabilities have overtaken traditional engineering and IT skills as the most difficult to source—marking a structural shift in employer demand that is clearly reflected in the UAE market. Across APME, the most scarce capabilities include:

• AI Model & Application Development (27%)

• AI Literacy (26%)

• Traditional IT & Data skills (18%, ranked sixth)

François Lançon, Regional President for APME at ManpowerGroup, said AI is rapidly redefining workforce competitiveness. “The rise of AI has fundamentally reshaped both the skills landscape and the hiring process in APME. Today, AI skills are no longer niche capabilities, they are foundational to workforce competitiveness across the region,” Lançon said.

He noted that organisations must simultaneously help employees adapt to immediate AI-driven change while building deeper capabilities for the future and evolving recruitment to identify “AI-enhanced candidates.”

Human capabilities remain essential

Even as demand for AI expertise surges, employers in the UAE and globally continue to prioritise human skills. Communication, collaboration and teamwork rank as the most sought-after capabilities worldwide at 39%, followed by professionalism and work ethic (36%) and adaptability and willingness to learn (34%).

The findings suggest that success in increasingly automated workplaces will depend on a balance between technical fluency and human-centered capabilities.

Shortages cut across industries

Talent scarcity in the UAE mirrors the global pattern of broad-based pressure. Worldwide, the Information industry reports the highest shortage level at 75%, followed closely by Hospitality (74%) and Public Sector, Health & Social Services (74%). Manufacturing (72%) and Finance and Insurance (71%) also report significant strain.

Organisational scale further complicates hiring. Companies with 1,000–4,999 employees report the highest shortage rate at 75%, compared with 64% among the smallest firms.

Employers double down on upskilling

To counter persistent shortages, 91% of employers globally are deploying multiple talent strategies. Upskilling and reskilling lead at 27%, followed by greater schedule flexibility (20%) and location flexibility (18%).

Pay increases (19%) and targeting new talent pools (18%) are also emerging as key competitive levers for employers in tight labor markets such as the UAE.

Jonas Prising, Chair and CEO of ManpowerGroup, said organisations must rethink how they build workforce capability. “AI is not replacing jobs, it is reshaping work, and companies that connect productivity gains with opportunity and career growth will be best positioned to compete in a talent-scarce world,” Prising said.

Notably, the report findings appear to contrast with fresh data from Coursera, which points to a rapid surge in AI capability building across the UAE workforce. It found that enrollments in generative AI courses in the UAE jumped 105% year over year, while Professional Certificate enrollments rose 95%, signaling strong momentum toward AI readiness. 

The divergence suggests the UAE’s talent gap may be less about lack of intent and more about timing and scale. While employers continue to struggle to fill advanced AI roles today, the country’s job-ready workforce is aggressively investing in AI and GenAI skills to position itself for emerging, AI-centric jobs.

As the UAE continues its push toward a knowledge- and innovation-led economy, these reports signal that securing AI talent, while strengthening human skills, will be central to maintaining workforce competitiveness in the years ahead.