The Ministry of Human Resources and Emiratisation (MoHRE) has taken administrative and financial measures against 40 domestic worker recruitment offices in the UAE during H1 2025. This follows the confirmation of approximately 140 violations of the country’s Labour Law governing domestic workers and its implementing regulations.

The ministry said it would not show leniency toward any recruitment office found to have committed legal or administrative violations.

MoHRE warned that repeated non-compliance with regulations could lead to tougher penalties, including the potential cancellation of operating licences.

In a statement on social media platform, X, MoHRE said the action comes as part of ongoing efforts to regulate the domestic labour market, boost the competitiveness and performance of recruitment offices, and respond promptly to complaints from employers and families.

“Continuous monitoring is carried out using both field-based and digital systems to detect and address violations, and to ensure offices are adhering strictly to applicable legislation,” the ministry said.

The majority of violations were related to failure to refund full or partial recruitment fees within the legally mandated two-week period.

This refund should be issued when a domestic worker is returned to the recruitment office or is reported to have stopped working. Other infringements included failure to clearly display ministry-approved service package prices to customers.

MoHRE says its equipped to deal with violations

MoHRE affirmed that its inspection and monitoring systems were fully equipped to deal with violations seriously and transparently, and reiterated its commitment to hearing complaints from employers.

The ministry encouraged the public to report any negative practices through its digital platforms or by calling the Labour Claims and Advisory Call Centre at 80084.

It also urged customers to work only with licenced recruitment offices to avoid the risk of fraudulent or unprofessional conduct.

Compliant domestic worker recruitment offices praised

Despite the violations, MoHRE praised the majority of domestic worker recruitment offices for complying with regulations and providing competitive services at reasonable prices.

These practices, it said, support the growth and leadership of the domestic worker services sector in the UAE.

The Dubai International Financial Centre (DIFC) reported its best-ever half-year results in H1 2025, with record growth across financial services, innovation, and fintech sectors.

A total of 1,081 new active registered companies joined DIFC between January and June 2025, a 32 per cent increase compared to the same period in 2024.

The total number of active companies reached 7,700, up 25 per cent year-on-year. The number of professionals working in the centre rose to 47,901, a 9 per cent increase from a year earlier.

Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE, and President of DIFC, said: “Dubai has entered a new and greater phase of growth, and these results highlight the competitiveness, attractiveness, and global confidence it enjoys,” he said. “We believe the future holds even greater opportunities, and we will continue to strengthen DIFC’s capabilities and its ecosystems that foster innovation, agility, and business growth.”

Financial services ecosystem expands

DIFC recorded a 28 per cent increase in financial services authorisations in H1 2025.

The number of entities regulated by the Dubai Financial Services Authority (DFSA) rose 17 per cent year-on-year to 980.

The banking and capital markets cluster grew 17 per cent to 289 firms, while the number of wealth and asset management companies increased by 19 per cent to 440.

The number of hedge funds operating from DIFC reached 85, representing 72 per cent growth since June 2024.

The centre now hosts 69 funds managing over $1bn each, and more than 10,000 funds are being managed or marketed from the centre.

Entities associated with family businesses rose by 73 per cent to 1,035, and the number of registered foundations increased 54 per cent year-on-year to 842.

The insurance and reinsurance sector saw 8 per cent growth, with 135 firms operating in H1 2025. G

ross written premiums for 2024 reached $3.5bn, up from $2.6bn a year earlier.

Innovation and fintech see continued expansion

The number of fintech, AI, and innovation-focused companies reached 1,388 in H1 2025, up 28 per cent from 1,081 a year earlier. Active non-financial entities grew by 28 per cent to 6,335.

DIFC hosted over 20,000 participants from more than 120 countries during its flagship Dubai AI Festival and FinTech Summit. During the events, the Dubai AI Academy was launched and Dubai Future Finance Week was announced for May 2026.

The Ignyte growth platform, launched in late 2024, has already delivered Dhs182m in economic benefits, supporting start-ups, investors, and founders across the region.

Legislation, education and real estate milestones

The DIFC Academy recorded its highest ever enrolment in a six-month period, with 4,947 learners completing programmes in H1 2025. DIFC also launched the ‘1 Million Learners’ initiative, aimed at equipping one million individuals with sustainability knowledge by 2030.

Over 6,075 hours of sustainability-related training were delivered in H1 2025, bringing the cumulative total to 22,241 hours.

In the legal domain, DIFC proposed new Variable Capital Company Regulations and updates to its existing framework including refinements to the Law of Security, Insolvency Law, and Employment Law. DIFC was also selected to host the 2026 Global Privacy Assembly, the premier forum for international data protection authorities.

On the real estate front, DIFC said inventory for its newly launched DIFC Heights sold out within three days. Over 1.6 million sq ft of commercial space is currently under development and expected to be ready for occupancy from Q1 2026.

Read: DIFC Courts see 38% surge in claims valued at Dhs6.8bn in H1 2025

New entrants at DIFC

New clients joining DIFC in H1 2025 included firms such as ABK Capital, Avaloq, Baron Capital, Bluecrest Capital, Bridge Investment Group, Cambridge Associates, China International Capital Corporation, dLocal, Manulife, National Bank of Kuwait, Pearl Diver Capital, PIMCO, RV Capital, Silver Point Capital, Tourmaline, TransAmerica Life Bermuda, and Welwing Capital Management.

“DIFC remains the driving force behind Dubai’s economic growth, as a key enabler of the financial services sector’s expansion and diversification,” said Essa Kazim, governor of DIFC.

Arif Amiri, CEO of DIFC Authority, added: “In the first half of 2025, DIFC has exceeded expectations across every metric. Our strong performance demonstrates the power of our ecosystem and the depth of expertise we bring to the industry.”

Blacklane, the global chauffeur service, has introduced Rolls-Royce models as a new Platinum Class option, initially in Dubai.

This marks the first time Rolls-Royce vehicles have been added to the company’s platform, signalling an acceleration of Blacklane’s investment and expansion across the Middle East.

The launch of Platinum Class follows other recent strategic growth initiatives in the region.

Blacklane added Mercedes Benz EQEs in March

Earlier this year in March, Blacklane added a fleet of all-electric Mercedes Benz EQEs to its platform in Dubai, enhancing its First Class service, which has been established in the city since 2023.

Further expansion in the Gulf Cooperation Council (GCC) includes the rollout of Lucid advanced electric vehicles in Saudi Arabia and the commencement of new operations in Kuwait.

Dr Jens Wohltorf, co-founder and CEO of Blacklane, stated, “2025 has been a year of milestones for Blacklane in the GCC and we are hitting new achievements in luxury mobility month after month. Dubai is a city of opportunity and a fitting home for the first ever Rolls-Royce cars on our platform.”

He added that the investment is “raising demand and excitement for first-class chauffeur services across the Middle East.”

The new Platinum Class features Ghost Series II Rolls-Royce vehicles, distinguished by Blacklane’s signature two-tone black and white exterior.

These cars are complemented by a new team of professional chauffeurs, onboarded by Blacklane for their experience with prestigious cars and further trained at the Blacklane Chauffeur Academy in Dubai.

The Rolls-Royce Ghost Series II cars are now available for pre-booked journeys, including airport transfers, and for immediate hailing from select locations in Dubai.

Read: Rolls-Royce Motor Cars’ James Crichton on its focus on personalising luxury

The UAE has emerged as a surprising but confident frontrunner in AI governance, according to a new IBM study. Developed by the IBM Institute for Business Value (IBV) in collaboration with the Dubai Future Foundation, the report reveals that UAE businesses lead the world in appointing Chief AI Officers (CAIOs), a sign that organisations here see AI not just as a tech upgrade, but as a critical enabler of future growth.

In an exclusive interview with Gulf Business podcast Situation Today, Lula Mohanty, managing partner for IBM Consulting across the Middle East and Africa, shared her insights on the regional implications of the study and how IBM is helping organisations operationalise AI at scale.

“I’ve recently come into the region, and what excites me most is the scale of opportunity,” she says. “There is real momentum around AI here, and the UAE is treating it not just as an experiment, but as a major economic imperative.”

From vision to execution

Mohanty highlights a striking trend: one in three organisations in the UAE has appointed a Chief AI Officer—a significantly higher figure than global averages. According to her, this regional leadership is rooted in long-term national strategies such as UAE’s AI Strategy 2031, bold investments in digital infrastructure, and a government mindset that treats AI as a force multiplier.

“This leadership is rooted in UAE’s long-term vision,” she says. “It’s a country where AI is not just another prompt bar—it’s an economic driver, as His Excellency Omar Sultan Al Olama has described.”

His Excellency Omar Sultan Al Olama was appointed as the UAE Minister of State for Artificial Intelligence in 2017, becoming the world’s first minister in this field.

But while the UAE may be setting the pace, the real challenge lies in embedding AI within the fabric of an organisation.

“Creating AI models is no longer the hard part,” Mohanty says. “The challenge is in integrating those models into day-to-day business operations in a scalable, secure, and ethical way.”

This is where CAIOs are evolving from technologists into cultural leaders. According to the study, 40 per cent of UAE CAIOs are prioritising change management, higher than the regional average. These leaders are tasked with creating the conditions such as governance, security, and above all, mindset, for AI to thrive.

“At IBM, we ran a company-wide hackathon to embed AI thinking across the business. Over 178,000 IBMers participated. It was about building a culture where AI becomes business as usual, not an exception.”

Watch the full video interview here:

The importance of top-down AI strategy

The report also shows that 90 per cent of UAE CAIOs receive strong support from their CEOs, with 53 per cent reporting directly to the CEO or board. Mohanty believes this top-down commitment accelerates deployment and unifies organisational priorities.

“When leadership puts AI at the centre, everything else aligns—resource allocation, accountability, speed of decision-making. It becomes an enterprise-wide conversation, not a departmental initiative.”

IBM has mirrored this approach internally. Through its enterprise-wide AI strategy, IBM reportedly saved over $3.5bn in productivity using its watsonx platform—a blueprint now being adapted for clients in the region.

From pilots to measurable ROI

Despite the optimism, challenges remain. Around 76 per cent of UAE organisations are still in the pilot phase of AI deployment, compared to 60 per cent globally. Scaling beyond proof-of-concept requires more than vision—it requires infrastructure, trusted data, and cross-functional collaboration.

“POCs are everywhere, but the real challenge begins when you try to integrate AI into your business model,” Mohanty says. “A platform-first mindset is key.”

Financial autonomy also plays a role. The study reveals that 79 per cent of UAE CAIOs control their organisation’s AI budget, significantly higher than the global average.

“This ownership allows them to prioritise impactful programmes and track ROI. It’s about putting your money where your mouth is.”

On-the-ground impact: AI across sectors

IBM is actively partnering with public and private sector players to bring AI to life in the UAE. Examples include a strategic partnership with e&, announced at WEF 2025, to deploy an end-to-end AI governance solution using IBM’s watsonx.governance; a joint initiative with Dubai Future Foundation to mentor startups and build a high-impact AI hub; and A mobile app developed with the University of Sharjah, through the IBM Sustainability Accelerator, to help UAE farmers assess well water quality and optimise agricultural practices.

“The potential of AI in public administration, logistics, and healthcare is enormous,” says Mohanty. “We’re only just getting started.”

The changing face of AI leadership

The study also found that 69 per cent of UAE CAIOs come from data-related roles, and 48 per cent from operations. This signals a shift in the kind of leadership required.

“It’s not enough to know how AI works—you have to know where it will work,” she explains. “The most effective leaders now connect insights to impact. It’s not about assistants; it’s about orchestrated workflows.”

Internal promotions are also making a difference. 69 per cent of UAE CAIOs were promoted internally, which Mohanty believes drives cultural alignment.

“They hit the ground running, they know the processes, and they have the credibility to lead transformation. It also makes the CAIO role aspirational.”

Experimentation vs accountability

Despite challenges in defining perfect AI metrics, 74 per cent of UAE CAIOs are moving forward with AI programs. Mohanty says organisations must embrace a “progress over perfection” mindset.

“We didn’t wait for perfection when we built our AskHR platform. We set a modest target—10,000 hours saved—and ended up saving 12,000. Now we’re handling over 11.5 million interactions.”

She advises organisations to start with quick wins, define clear exit criteria for pilots, and adopt a phased approach to scale.

“AI can become outdated quickly. You have to move fast—but with discipline and governance in place.”

A global playbook from the UAE

For Mohanty, the lessons from the UAE are clear: build from the top, invest in platforms, integrate AI into every function, and cultivate a mindset shift.

“This is about building a scalable AI architecture with clear strategies, skills, and cultural readiness,” she said. “The UAE has shown that AI can become part of an organisation’s DNA—not just as a smart model, but as a driver of enterprise-wide transformation.”

Abu Dhabi’s real estate sector posted a robust performance in the first half of 2025, recording a 39 per cent surge in total transaction value year-on-year. According to figures released by the Abu Dhabi Real Estate Centre (ADREC), transaction value rose to Dhs51.72bn, up from Dhs37.2bn during the same period in 2024.

The market witnessed a 12 per cent rise in the number of transactions, reaching 14,167 deals—driven by increased activity in sales, purchases, and mortgages. The value of sales and purchase deals grew 32 per cent to Dhs32.69bn across 7,964 transactions. Meanwhile, mortgage transactions saw an even stronger growth of 52 per cent, totaling Dhs19.03bn across 6,204 deals.

The period also saw a notable uptick in international investor activity. Foreign Direct Investment (FDI) transactions climbed to 890, with a total value of Dhs3.38bn—a 3.3 per cent increase from H1 2024. ADREC reported that the number of nationalities investing in the capital’s property market reached 85, marking a 10 per cent year-on-year increase and reinforcing Abu Dhabi’s global appeal.

Demand

Strong demand came from investors in countries such as Russia, China, the United Kingdom, France, Kazakhstan, and the United States, further establishing the emirate as a reliable and attractive global investment destination.

In terms of geographic distribution, Saadiyat Island led the market with Dhs9.1bn in transaction value, followed by Yas Island (Dhs5.86bn) and Al Bahia (Dhs3.98bn). Other high-performing areas included Mohammed Bin Zayed City, Al Reem Island, Al Riyadh City, and Khalifa City, highlighting widespread investor interest across Abu Dhabi.

Read: Bayut: Abu Dhabi real estate continues to attract strong investor interest in H1 2025

Commenting on the performance, Eng Rashed Al Omaira, acting director General of ADREC, said: “The first-half performance reflects the growing confidence in Abu Dhabi’s real estate market, from both global and national investors, reflected in the sustained growth in transaction values and continued increase in foreign investment.

“The recent launch of high-quality projects has further energised the market and opened doors to attractive investment opportunities, reinforcing Abu Dhabi’s attractiveness as a leading destination for sustainable real estate investment. Additionally, the initiatives ADREC recently launched and the facilitations it offered, including automation of a large number of processes and services, had a pivotal role in reaching this achievement, through streamlining the investor’s journey, accelerating transactions and enhancing transparency.”

ADREC continues to advance its regulatory framework and improve the customer experience, aligning its services with Abu Dhabi’s broader economic development goals and supporting the emirate’s competitiveness on the regional and international stage.