The shockwaves from the West Asia war have led to recruitment criticism for roles based in Dubai, Saudi Arabia and Qatar, while companies operating in the region review expansion plans.
Global search firms said companies with planned or existing exposure to the region are suspending senior-level hiring amid growing uncertainty. Consultancy firms also warn that rewards could come under pressure for companies exposed to the region, as the conflict disrupts sectors such as energy, real estate, construction and logistics. Track the latest updates from the US-Iran war here
“There has been a lot of hiring activity in the UAE and Saudi Arabia because these two regions were highly dependent on expatriates,” said Puneet Kalra, managing director of executive search firm Russell Reynolds Associates. “The region is now going through a phase of uncertainty and clients’ plans to expand into the region are being reviewed again.” Kalra also advises search company boards and CEOs.
“In the case of the UAE, expatriate talent has been around for decades, and many call it home, so the impact, while present, may be limited. For Saudi Arabia, which has only recently accelerated efforts to diversify the economy, the impact on talent wanting to move there could be significant.”
The conflict has turbulent markets. Brent crude prices rose above $120 a barrel on Monday, the highest level since July 2022, before giving up some gains; The Indian rupee fell to a record low $92.33 against the US dollar. Brent crude oil traded below $90 on Tuesday, after US President Donald Trump indicated that the war may not take long.
Ripple effects can appear in compensation. Consultancy Aon, which advises companies on pay structures, warned that bonus pay could come under pressure.
“While expected salary increases will not be affected, bonus payments at some companies in the energy, supply chain, logistics and construction sectors that do business with West Asian countries may see a decline,” said Rupank Chaudhary, Partner and Head of India Talent Solutions Advisory, Aon.
While consumer and pharmaceutical companies are likely to remain relatively isolated, it is important to know whether the conflict is fueling inflation, Chaudhry said. “If inflation rises, adjusted real wages will be affected.”
According to a recent Aon study of 1,400 companies, India Inc is expected to achieve a 9.1% increase in 2026, with those in the real estate and infrastructure sectors and non-banking financial companies (NBFCs) getting the highest increase.
The timing of the conflict adds another layer of complexity for companies that were digesting the impact of labor laws introduced last November.
A recent study by Mint showed that 25 of the top 30 companies in India suffered from approx $12,000 crore hit to their earnings in the third quarter of fiscal 2026. The labor law mandates higher contributions to social security from both employers and employees, while also enhancing retirement benefits.
“This is clearly a supply-side shock, but we feel that more structural factors such as labor laws, economic growth and consumer demand will determine raises and bonuses for 2026,” said Anandrup Ghose, partner at human capital consultancy Deloitte. “However, long-term conflicts with a broader impact on supply chains may naturally create a significant gap.”
Goss highlighted that companies giving pay rises from April 1 have widely finished their balance sheets and this probably won’t change anything. “And those who do so in July/August still have a few months to see the current situation develop.”
Interestingly, the situation may also create some employment opportunities within India.
