32.16% surge in the number of private sector establishments in UAE

The Ministry of Human Resources and Emiratisation (Mohre) has revealed a 32.16 per cent surge in the number of private sector establishments entering the UAE's labour market in 2024, marking a substantial expansion in the sector.

The Ministry released statistics showing that the growth rate of companies in the labour market over the past year was 17.02 per cent, the labour force grew by 12.04 per cent overall, and the skilled labour force increased by 13.23 per cent.

The continuous increase in new establishments is clear evidence of the success of the policies and measures adopted by the UAE. These include economic and legislative facilities that attract investments and support the role of the private sector in the national economy. These measures have helped achieve economic and social stability, which is clearly reflected in supporting the industrial and commercial sectors and increasing foreign investments.

This increase is indicative of the UAE's status as a leading global labour market, characterised by its flexibility and efficiency, as well as an inviting business environment that attracts talent and expertise. It also underscores the country's capacity to attract capital and investors, owing to the guarantees it provides for the rights of workers and employers alike.

The Labour Relations Law, implemented in February 2022, has undoubtedly boosted market flexibility and productivity while offering solid legal protections for all parties. This law has been pivotal in strengthening the private sector's ability to attract top talent both nationally and internationally, significantly enhancing the overall business environment.

The Ministry has launched several labour-related policies as part of its continuous efforts to improve the work environment. Most notably, it has implemented the compulsory health insurance system for workers in the private sector and the saving and unemployment insurance systems. These policies have resulted in the UAE ranking first in the Arab world in the Global Labour Index for 2024.