UAE Declares Public Holiday on September 5, 2025 for Prophet Muhammad’s Birthday

The UAE has declared Friday, September 5, 2025, as a public holiday for Prophet Muhammad’s birthday, creating a three-day weekend that impacts workforce planning, business operations, and consumer spending. Sectors like hospitality, retail, and Food and Beverage (F&B) are expected to benefit from increased demand, while small and medium enterprises (SMEs) and professional services must manage staffing and operational continuity.

The United Arab Emirates (UAE) has officially declared Friday, September 5, 2025, as a public holiday to mark the birthday of Prophet Muhammad, giving employees across both the public and private sectors a three-day weekend.

The date was determined after the International Astronomy Center reported that the crescent of Rabi al-Awwal, the third month of the Islamic calendar, could not be sighted on August 23 but became visible the following evening. As a result, the UAE began the month on August 25, placing the Prophet’s birthday on the twelfth day, which coincides with September 5.

While the occasion is rooted in religious observance, the alignment with the Friday-Sunday weekend has practical implications for businesses. Employers must account for workforce scheduling, payroll adjustments, and potential shifts in consumer demand, particularly as sectors such as hospitality, retail, and domestic travel are expected to see an uptick in activity. For companies operating in finance, logistics, and professional services, the holiday represents a short operational pause that requires careful planning to maintain continuity.

Holiday announcement and regulatory framework

The UAE Cabinet formally granted Friday, September 5, 2025, as a public holiday to commemorate the birthday of Prophet Muhammad (PBUH), ensuring it applies uniformly across both public and private sector employees. The Federal Authority for Government Human Resources issued a circular directing federal ministries and entities to observe the holiday, while the Ministry of Human Resources and Emiratisation confirmed the arrangement for the private sector.

Since 2019, the UAE has maintained a unified public-holiday calendar for both employment sectors, facilitating consistent scheduling and minimizing confusion for businesses.

Implications for businesses and the economy

Workforce management

With the holiday falling on a Friday, employees will enjoy a three-day weekend from September 5 to 7, 2025. While this is positive for work-life balance, it can create operational challenges, particularly in customer-facing and service-intensive industries.

Businesses that rely on shift workers (such as retail, healthcare, logistics, and hospitality) will need to plan ahead by either redistributing shifts, arranging overtime, or introducing flexible work arrangements.

Larger firms may also use digital scheduling tools to minimize disruption. Proactive communication with employees is essential to avoid last-minute absenteeism, especially for SMEs with lean staffing structures.

Private-sector productivity

For corporate offices and professional services firms, the impact is limited to a one-day pause. However, given that the holiday coincides with the weekend, the productivity impact is relatively minimal compared with mid-week breaks.

In practice, the long weekend may even enhance productivity in the following week by offering employees a rest period, which can help reduce burnout during the busy final quarter of the year.

Consumer behavior

Long weekends consistently trigger a spike in domestic spending. Families often plan short trips, shopping outings, and dining experiences, leading to measurable boosts in the tourism, retail, and food and beverage sectors.

In the UAE, past long weekends have seen hotel occupancy rates rise by 15 to 20 percent and shopping malls introduce targeted promotions to capture discretionary spending. Businesses that anticipate this pattern can roll out limited-time offers, bundle promotions, or loyalty campaigns to maximize revenue during the three-day break.

Cross-border trade and logistics

While borders and ports remain operational, supporting critical trade flows, ancillary services, such as customs clearance offices, freight forwarders, and warehousing facilities, may operate at reduced capacity. This can cause minor bottlenecks, particularly for shipments requiring documentation or approvals.

Exporters and importers should factor in potential delays in shipment scheduling  and communicate proactively with international clients to maintain supply chain resilience.

Also read: UAE Data Protection Obligations and Cross-Border Data Transfer for Businesses

Sectoral impact

Hospitality and travel

The Prophet’s birthday holiday presents an opportunity for the tourism sector to capture last-minute demand. Airlines, hotels, and travel operators are already expected to report higher bookings for domestic and short-haul regional destinations such as Oman, Saudi Arabia, and the Maldives.

Staycations within Dubai, Abu Dhabi, and Ras Al Khaimah are also likely to surge, as residents take advantage of the three-day break. Hotel groups can maximize occupancy through tailored packages that combine accommodation, dining, and leisure experiences.

Retail

Retailers are expected to leverage the holiday with aggressive sales promotions, flash discounts, and cultural campaigns tied to the long weekend. Shopping malls and e-commerce platforms often report a significant rise in footfall and online traffic during such breaks.

Data from previous UAE public holidays indicates that electronics, fashion, and F&B outlets tend to benefit the most. For retailers, aligning marketing campaigns with payday cycles at the start of September could further amplify sales.

Gain more UAE sectoral insights

Finance and professional services

Financial institutions and professional firms will see a temporary slowdown, as most offices remain closed on the Friday holiday. While digital banking services remain uninterrupted, transactional volumes in areas such as corporate banking, legal filings, and government approvals are likely to dip.

Firms should plan for a small backlog the following week and adjust client deliverables accordingly. For consultancies, this break also provides an opportunity to recalibrate project timelines heading into Q4.

In brief

The UAE’s public holiday on Friday, September 5, 2025, for Prophet Muhammad’s birthday creates a three-day weekend that carries both operational challenges and business opportunities. Companies must plan for staffing adjustments and potential slowdowns in professional services, while sectors such as hospitality, retail, and F&B can capitalize on increased consumer spending and domestic travel. Proactive scheduling, targeted promotions, and aligned HR policies will help businesses maintain continuity and maximize the economic benefits of the long weekend.

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