UAE labour market sees historic growth as Emiratisation rises

Dubai: The UAE labour market experienced strong and sustained growth between 2021 and 2025, driven by wide-ranging reforms that boosted competitiveness, expanded Emirati participation in the private sector, and reinforced worker protections, according to the Ministry of Human Resources and Emiratisation.

The ministry reported that private-sector establishments employing Emirati nationals rose by 320 per cent during this period, while 98 per cent of labour complaints were resolved amicably in 2025.

Overall workforce growth reached 101.76 per cent, supported by a 49.92 per cent increase in skilled labour, a 45.76 per cent rise in companies, and a 101.92 per cent surge in female participation. The ministry said this expansion has provided significant momentum for the national economy.

The progress of Emiratisation in the private sector has been described as “historic,” particularly since the launch of the Nafis programme in 2021 and the phased implementation of Emiratisation policies. The number of Emiratis employed in the private sector increased by 377 per cent, reaching over 171,000 citizens by December 2025, up from approximately 37,500 in 2021.

These developments consolidated the UAE’s position as one of the world’s most competitive, flexible, and dynamic labour markets, underpinned by an integrated legislative framework and reforms introduced since 2021.

The regulatory environment has also enabled a comprehensive social protection system, safeguarding workers while balancing employers’ rights and supporting labour market stability. 99 per cent of workers are covered by the Wage Protection System and workers’ rights insurance, while 83 per cent of private-sector employees are enrolled in unemployment insurance schemes.

Four savings funds have been approved to help private-sector workers build long-term financial security, alongside a health insurance package for private-sector employees and domestic workers starting from Dh320. Guidance and advisory services in 17 languages reached nine million workers, while 99 per cent of establishments complied with long-standing heat-stress protection measures.

The Emirates Labour Market Award also played a key role in promoting best practices. Its third cycle in 2025 received more than 18,000 applications, with prizes totalling Dh50 million for 100 winners, up from 7,700 applications and Dh37 million in the previous cycle.

Cumulative reforms helped the UAE rank first globally in several labour competitiveness indicators in 2025, including employment growth, workforce expansion, low labour disputes, leadership talent availability, working hours, and lower end-of-service compensation costs.