UAE Job Market Braces for AI-Driven Layoffs as Experts Warn of Incoming Wave

As Amazon confirmed another round of corporate job cuts this week amid a global shift toward automation and artificial intelligence, UAE recruitment experts are warning that the same trend is about to hit the Gulf region.

Zaid Al Hiali, co-founder of Marc Ellis Consulting and Training, said what began in the US with major tech firms like Amazon and Meta will soon reshape the employment landscape across the UAE. “This is definitely a wave that is coming our way 100 per cent,” he said. “Technologies are being introduced not only in operations but even in tech roles like software engineering. You can now ask AI to build a website in seconds. Many will be let go because AI is taking jobs.”

Al Hiali said employees across sectors must urgently “upskill” to remain relevant. “If you have ten administrators, you may only need two or three,” he warned. He described how his own firm uses an AI-powered designer review system that has replaced what used to be a team of ten engineers. “Now, we feed technical maps into the system — it checks them automatically and delivers results within minutes,” he said.

He added that automation is spreading across oil and gas, banking, and technology, influencing even Emiratisation strategies. “Some companies used to hire Emiratis for entry-level roles such as call centres, but now AI systems can handle those functions entirely,” Al Hiali said. “AI agents can speak any language, in any accent, faster and cheaper than humans.”

While Al Hiali expects large-scale layoffs to occur discreetly over the next two years, he noted that some employers are opting to retrain staff instead of replacing them. “One of our biggest clients is training engineers to work with AI rather than letting them go,” he said. “It’s a smart move — they’re valuable assets.”

His business partner, Aws Ismail, agreed that AI will transform the workplace but believes it should be viewed as an enabler, not a replacer. “AI should enhance productivity, not eliminate jobs,” he said. “When used correctly, it can make businesses far more efficient.”

Marc Ellis was also the first in the region to introduce an AI recruiter — an automated calling system that screens candidates and forwards shortlisted profiles to human recruiters. “It calls applicants, checks their CVs, and verifies experience,” Ismail explained. “Our speed has gone up by 40 per cent since we launched it.”

For many jobseekers, interacting with AI recruiters has been a positive experience. Graphic designer Sakina Abdulhusein, 25, said her interview with “Sarah AI” felt less intimidating than a traditional one. “It was fast, efficient, and surprisingly human-like,” she said. Similarly, Joshua Limcaoco, 25, a content strategist, said the AI system “spoke naturally” and “showed empathy.”

Although major layoffs have yet to reach the UAE, both experts believe the shift is inevitable. “The biggest cuts are happening in the US now because they started earlier,” Ismail said. “But the pattern will follow here too if people don’t make themselves indispensable.”

Their advice for workers is clear: learn AI before it replaces you. “Awareness is key,” Al Hiali said. “Those who upskill now will be the ones who thrive later.”