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UAE working week changes to create ‘steady influx of new wealth’

By Robbie Lawther, 7 Dec 21

It will help ‘advisers align with the rest of the world’

The United Arab Emirates will transition to a four-and-a-half-day working week, with Friday afternoon, Saturday and Sunday forming the new weekend.

The changed working week will commence 1 January 2022, across the federation of seven emirates – Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain – that make up the UAE.

The working week is currently Sunday to Thursday.

The UAE government said in a social media post on 7 December 2021: “UAE announces today that it will transition to a four-and-a-half-day working week, with Friday afternoon, Saturday and Sunday forming the new weekend. All Federal government departments will move to the new weekend from 1 January 2022.”

The details around when the changes will kick in for the private sector is unknown. But the government did say that the newly established working week changes will:

  • Have eight working hours a day on Monday to Thursday from 7.30am to 3.30pm;
  • Have four and a half working hours on Friday from 7.30am to 12.00pm;
  • Have Friday sermons and prayers to be held after 1.15pm all year long in UAE;
  • Have possibility of flexible working hours and work-from-home options on Friday; and
  • Have longer weekends to “boost productivity and improve work life balance”;

Influx of new wealth

Nigel Green, chief executive and founder of DeVere Group, said: “This is a major cultural, societal and economic shift that can be expected to provide a massive boost for the UAE economy.

“The UAE, and in particular Dubai and Abu Dhabi are already recognised as two of the most powerful business and financial hubs in the world by international investors who are lured by the incredible possibilities offered in terms of finance, trade and commerce, plus the famous ‘can do’ attitude and the low tax environment in these destinations.

“The transition to a four-and-a-half-day working week, which now aligns with most major economies around the world, will prove to be another significant ‘pull’ for international corporations that are currently based elsewhere.

“We can expect there to be a steady influx of new wealth and job-creating businesses relocating to the UAE on the back of this announcement. The working week announcement is a game-changer for the UAE, significantly ramping up its already impressive competitive advantage.”

Sam Instone, director of AES, added: “This is a fantastic development. Many private sector firms I have spoken to are already planning to align with this.

“It will help investment advisers align with the rest of the world and attract businesses and people to the region. I am hugely excited by the regional growth opportunities this will potentially bring and the influx of talent that is likely to follow.”

World first

Hannah Greenwood, managing director at Finsbury Associates, said: “It improves our ability to deal with investment providers on behalf of our clients as our working days are aligned, and should help speed up some business processing times. I believe it will have a positive economic impact on the UAE and highlights our emerging status on the global map.

“With regards to the implementation of a 4.5-day work week, this will help boost work-life balance and has been well received here in the UAE. Throughout the past two years, there has been a significant shift to more flexible work arrangements, something we have taken on board here at Finsbury Associates and implemented since before the pandemic.

“We don’t expect the reduced working week to have any impact on productivity within the business; on the contrary, it shows the UAE as a leader in terms of offering flexibility and work-life balance.

“In doing this, the UAE has become the first nation in the world to implement a national working week shorter than the five day average and we anticipate the formalisation of these initiatives will help to attract and retain talent within the UAE.”

Dean Kemble, managing partner at GSB Capital, added: “Detail on how this would apply to the private sector is still to be clarified, however as a progressive forward thinking advisory business, this will support our integration with major global financial markets, who mainly operate Monday to Friday.

“The changes will elevate the UAE further as a country focused on the social benefits of its citizens and residents. On initial review, GSB is well positioned and any transition will be relatively seamless. It will be change we embrace which will support our clients, skilled teams and business.”

Tags: AES International | DeVere Group | Finsbury Associates | UAE

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International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.