Overview
The UAE labour market is one of the most internationally diverse in the world, with expatriates constituting roughly 88 percent of the total workforce. The federation’s economic transformation agenda depends on calibrating labour supply with sectoral demand while increasing Emirati participation in the private sector through the NAFIS programme and related incentives.
Current Landscape
Employment growth has been concentrated in professional services, technology, tourism, and logistics – sectors at the core of the diversification strategy. The introduction of multi-year residency visas, freelancer permits, and golden visas has improved workforce retention and attracted higher-skill migrants. Emiratisation mandates now require private companies with 50 or more employees to increase UAE national headcount by two percent annually, backed by financial penalties for non-compliance.
Data & Metrics
| Indicator | 2024 | 2025 (Est.) | 2026 (Proj.) |
|---|---|---|---|
| Total Workforce (million) | 6.8 | 7.1 | 7.4 |
| Emiratisation Rate (Private Sector) | 5.8% | 7.2% | 8.5% |
| Unemployment (Emirati) | 6.9% | 6.2% | 5.5% |
| New Work Permits Issued | 1.2M | 1.35M | 1.4M |
| Golden Visas Granted (cumulative) | 215K | 310K | 400K |
Policy Framework
MOHRE’s labour reforms since 2021 have overhauled the employment relationship: the kafala system has been replaced with a contract-based model, end-of-service savings schemes are being piloted, and mid-day outdoor work bans protect worker welfare. Wage Protection Systems (WPS) ensure timely salary disbursement. The NAFIS programme subsidises Emirati private-sector salaries and provides pension parity with the public sector.
Vision 2031 Implications
The 2031 labour market must balance scale with quality. Automation will displace low-skill roles in construction and retail, requiring upskilling pathways for displaced workers. Simultaneously, the knowledge-economy targets demand a labour pipeline rich in STEM graduates and digital professionals. Achieving the Emiratisation ceiling without crowding out productivity-enhancing foreign talent remains the central policy tension through the decade.