Nearly 47% of Mena professionals said their companies outsource work to freelancers to a great extent. Getty
Nearly 47% of Mena professionals said their companies outsource work to freelancers to a great extent. Getty
Nearly 47% of Mena professionals said their companies outsource work to freelancers to a great extent. Getty
Nearly 47% of Mena professionals said their companies outsource work to freelancers to a great extent. Getty

Demand for freelancers picks up in Mena region


Alkesh Sharma
  • English
  • Arabic

Demand for freelancers is increasing across the Middle East and North Africa region as companies see “multiple benefits” in outsourcing work, according to a new survey by jobs site Bayt.com.

About 52 per cent of those surveyed said they hired freelancers due to their ability to deliver within tight deadlines, while 17 per cent cited cost-effectiveness, the 2021 Freelancing in the MENA survey found. They are also good for businesses' contingency planning (16 per cent) and provide extra help for small departments (15 per cent).

For freelancers, the biggest motivations include earning extra income (55 per cent), adding new skills (24 per cent), practicing what they like (11 per cent) and the ability to control their work schedule (7 per cent).

The survey highlights the key driving forces that have led to shifts in the Mena’s freelancer workforce, Ola Haddad, director of human resources at Bayt.com, said.

“Respondents agree that the flexibility and opportunity associated with freelancing is increasingly appealing and that is why we’ve seen such dramatic growth in the number of people choosing to freelance,” she added.

The survey, which polled 4,296 respondents from countries including the UAE, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, Lebanon, Jordan, Iraq, Palestine, Syria, Yemen, Egypt, Morocco, Algeria, Tunisia, Libya and Sudan, was done between December 20 and February 15.

The coronavirus pandemic has disrupted many traditional norms around employment and prompted hordes of office employees to work remotely to stem the pandemic's spread. It has also led more people to become digital nomads as they shun traditional physical boundaries of offices and opt for flexible schedules.

Professionals in the Mena region are increasingly opting for freelancing opportunities due to its flexibility but nearly half of those surveyed said they were also looking for new career opportunities.

Almost 22 per cent said freelancing afforded more work-life balance and 5 per cent cited reduced stress levels.

Six in 10 professionals strongly agree that the demand for freelancers has increased in the past year, while 88 per cent of those surveyed plan to do more freelance work in 2021.

The top skills that freelancers must have include time management (43 per cent), communication skills (21 per cent), ability to market themselves (19 per cent) and leadership (10 per cent), the survey showed.

Businesses are also embracing freelancers.

Nearly 47 per cent of respondents said their companies prefer to outsource work to freelancers to a great extent, while 17 per cent said their companies do not outsource work.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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