The UAE labour market recorded another strong quarter of expansion, with new data from the Ministry of Human Resources and Emiratisation (MoHRE) showing rises in both operating companies and workforce participation by the end of Q3 2025. The latest figures reaffirm the UAE’s position as one of the most dynamic and business-friendly environments globally continuing to attract investors, entrepreneurs, and skilled professionals.
Table of Contents
Private Sector Expansion Gains Pace
MoHRE data reveals that the number of active private-sector establishments increased by 6.6%, while the registered workforce grew by 8.9%. This dual rise reflects improving business sentiment, sectoral diversification, and policy measures aimed at strengthening the national economy.
Wholesale and retail trade led with 30.15% of all active establishments, followed by:
- Construction – 17.13%
- Administrative services – 12.17%
- Manufacturing – 8.8%
- Professional, scientific, and technical activities – 5.85%
These numbers indicate that the UAE’s growth is not concentrated in a single industry but spread across multiple pillars of the economy.
Strong Talent Demand Across Sectors
Workforce expansion continued across service and infrastructure-linked sectors, underlining the UAE’s increasing demand for skilled and semi-skilled labour. Notable contributions came from:
- Accommodation and food services – 5.82%
- Transportation and storage – 4.38%
- Information and communication – 3.09%
- Real estate – 2.34%
An additional 5.1% of growth was distributed across other activities, showcasing a broad hiring appetite.
MoHRE emphasised that increased private-sector participation remains central to national competitiveness, with public–private partnerships playing a growing role in supporting sectoral expansion.
Enhanced Business Environment Through Policy Reforms
Recent legislative updates have made the labour market more flexible and business-friendly. Regulatory clarity, coupled with streamlined procedures and coordinated federal–local support, has fostered greater confidence among investors and employers.
These measures are seen as major catalysts behind the rise in new businesses, the expansion of existing firms, and the UAE’s continued appeal as a destination for skilled labour.
Wage Protection System Strengthens Worker Confidence
A highlight of MoHRE’s update is the near-universal coverage of the Wage Protection System (WPS), which now includes 98.8% of private-sector employees. This ensures:
- Timely wage payment
- Protection of workers’ rights
- Administrative action for delays or violations
Strengthening salary transparency and accountability has helped enhance the UAE’s global competitiveness by improving labour-market stability and attracting high-quality talent.
A Market That Reflects Confidence and Diversity
The coordinated efforts of government authorities alongside financial and administrative support packages have reinforced the UAE’s reputation as a reliable, future-ready labour market. Rising numbers of establishments and workers indicate a robust and diverse economic environment backed by strategic policymaking.
The Q3 performance makes one trend clear: the UAE continues to be a powerful magnet for investment, business expansion, and global talent, positioning itself as a hub where companies can grow with confidence and workers can build long-term careers.
