Al Isra Wa Al Miraj holiday will fall on the weekend, meaning public and private sector employees working on Saturday will get a day off.
The Federal Authority for Government Human Resources said ministries, federal agencies and all private sector establishments will resume work on Sunday.
Schools had initially told parents that Thursday may be a day off for pupils, but later said it was a normal school day.
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The authority congratulated President Sheikh Khalifa, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, and Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and the Rulers of the Emirates.
It also congratulated the people of the UAE and the Arab and Islamic nations on the occasion.
Known as the Prophet's Ascension or the Night Journey, Israa wal Miraj are the two parts of Prophet Mohammed's journey from Makkah to Jerusalem during one night.
He is said to have travelled on a winged horse before ascending to Heaven to speak to God, who gave him instructions to take back to Muslims regarding the details of prayer. Learn more here.
