I joined a company in Dubai in 2013 but after getting my employment visa stamped, I took emergency leave to my home country. Because of family issues, I didn't go back to Dubai. However, I am now planning to return to Dubai and look for a job. Will I be allowed to enter or do I face an employment ban? AK, India
Anyone who goes on annual leave and fails to return to the UAE is considered an absconder. The employer will take action against them, not least for the inconvenience caused.
This is covered in Article 128 of the UAE Labour Law, which states: “Should the non-national worker leave work without a valid cause before the end of the contract with definite term, he may not get another employment even with the permission of the employer for a year from the date of abandonment of the work. No employer may knowingly recruit the worker or retain his service during such period.”
If an employee leaves without giving notice, or simply fails to return to work, the employer can apply for an absconding ban and that will usually be for one year. In some cases, however, an individual can be blacklisted.
AK will need to check that he is not banned from entering the UAE, although it is doubtful that is the case considering the amount of time that has elapsed. If he still has his Emirates identity card number, he can check the Dubai Police website or app. Note that this is for Dubai visa holders only.
If he does not have an ID number, he will need to contact the General Directorate of Residents and Foreigners Affairs, which has a main office in each emirate. The Dubai website gives multiple options for making contact.
I am employed on an unlimited contract with a private company and am still on probation. I have received a job offer from another employer, which I plan to accept, as it offers significantly higher benefits compared with my existing salary.
My contract says that I have to serve a notice period of 30 days. If I want to stop working before the end of the notice period, will I have to compensate my employer with one month's salary?
My current employer's job offer letter had a condition stating that if I decide to resign during the probation period, I will have to pay for visa administration charges. Is this a legal condition? SB, Abu Dhabi
All employees, both permanent and on probation, are obliged to provide 30 days’ notice if they wish to resign.
This is stated in Article 117 of the UAE Labour Law: “The employer and the worker may terminate the employment contract with undetermined term for valid grounds at any time subsequent to the conclusion of the contract, and such after notifying the other party thereof in writing at least 30 days before the termination thereof.”
Potentially, an employer can permit an employee to leave sooner but this should be with the agreement of both parties
Keren Bobker
Potentially, an employer can permit an employee to leave sooner but this should be with the agreement of both parties.
The employer can apply Article 119 of the Labour Law to this situation, which states: “Should the employer or worker fail to notify the other party of the termination of the contract, or should such party reduce the notice period, the notifying party shall pay to the other party a compensation known as compensation in lieu of notice, even if such failure to notice or such reduction of the period does not cause damage to the other party. Such compensation shall be equal to the wage of the worker with regards to the entire notice period or the reduced part thereof.”
If the employer agrees to this, SB may have to compensate the company for the total amount of days he does not work during the 30-day notice period.
In answer to the second query regarding the employer seeking financial compensation for visa costs, this is an illegal clause in the contract and is not enforceable under UAE employment law.
The law is clear that it is the responsibility of the employer to arrange and pay for a visa and work permit. An employer is not permitted to pass on any costs of employing an individual.
There are far too many cases where an employer issues a contract saying the employee is liable for costs but this will not be in the official contract that is lodged with the Ministry of Human Resources and Emiratisation (MoHRE) and a case can be registered against the employer if they demand payment.
Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with more than 25 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
The advice provided in our columns does not constitute legal advice and is provided for information only
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
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
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