Dubai job market slows as Iran war spillover hits migrant workers

Dubai's job market is showing signs of strain months after the conflict involving Iran spilled into the Gulf, with migrant workers reporting layoffs, weaker pay and fewer openings. The slowdown has been felt most sharply in tourism, aviation and businesses that rely on foreign visitors. Workers in several parts of the city say they are now spending days searching for work that is no longer easy to find.

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The report says Iranian missiles and drones hit the United Arab Emirates during the conflict, contributing to the disruption. One Filipina domestic worker, Joy Vivanda, said she lost her job in March after the family she worked for left Dubai during the conflict and did not return. She has been looking for work for four months and says returning to the Philippines is not an option because she supports four children from her Dubai income.

Other workers described similar pressure across different sectors. Indian accountant Mujeeb Rahman said the catering company he worked for ran out of business and that there is "simply no business" and not enough cash flow to pay employees and suppliers. Egyptian saleswoman Zekra Elsa said tourist visits fell sharply during the conflict, forcing her employer to move her from a fixed salary to commission, while her daily sales often remain below $150.

Cameroonian welder Yanick Obi said he still reports to work each day, but maintenance contracts have dried up and there is no work. The labour-market weakness matters because Dubai depends heavily on migrant labour and on sectors tied to international travel and business activity. A slowdown in hiring can quickly affect workers who send money home, especially those in lower-paid jobs with limited savings.

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It also highlights how a regional security shock can ripple into household incomes and commercial activity far beyond the immediate conflict zone. The report says the United Arab Emirates has introduced support packages worth more than $680 million to help businesses through the slowdown. Economy and Tourism Minister Abdulla Bin Touq al-Marri has described the war's impact as a temporary "glitch", while Dubai Investments chief executive Khalid Jassim Mohamed bin Kalban has said he expects a quick recovery and sees no sign of people or businesses leaving.

At the same time, a ManpowerGroup survey of 546 UAE employers found that one in four plans to cut jobs in the third quarter of 2026, and nearly a third have no hiring plans at all. What remains unclear is how long the slowdown will last and whether the support measures will be enough to stabilise hiring. The report suggests some employers are already cutting costs, but it does not give a citywide unemployment figure.

The next signs to watch are whether tourism and aviation recover, whether more firms announce layoffs, and whether workers continue to report falling pay and fewer opportunities.

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