Market Updates

UAE private sector workforce grows 2.2% in H1 2026

Growth has moderated between quarters this year and from 2025 levels but ongoing hiring suggests market confidence remains strong.

By Nisha Braganza

The UAE's private sector workforce grew 2.2% in H1 2026, despite a turbulent first half brought on by on-and-off regional military tensions. While growth has moderated between quarters this year and from 2025 levels, ongoing hiring suggests that market confidence remains strong despite regional uncertainty, at least across parts of the private sector.

As employers continue to grow their headcount, HR leaders have an increasing responsibility to ensure that benefits promised to every employee (new as well as existing) are adequately funded and available when they fall due.

This is especially true for End-of-Service Benefits (EOSB) which is a long-term employer obligation that can be more easily deferred than shorter-term costs, making regular funding all the more an important discipine.

The UAE EOSB Savings Scheme was introduced to help employers fund EOSB obligations on an ongoing basis through a regulated framework. It provides ring-fenced assets, capital-protected investment options and flexibility for both employers and employees. Once adopted, it replaces the gratuity system for future service and could potentially reduce EOSB costs for employers over the long term.

If you'd like to understand how the scheme works and why many employers are considering the transition, Vestora hosts complimentary EOSB briefings for employers each month in Dubai and Abu Dhabi. These sessions are educational, independent and free to attend.

For details and registration: https://www.vestora.ae/employers/briefings

Source: MOHRE Labour Market Observatory