Insight and opinion from The National’s editorial leadership
December 07, 2021
In Iceland, it was called an "overwhelming success". In New Zealand, an "unmitigated success". And in Spain, a "game changer". All three countries have, to varying degrees, tried the concept of a shorter work week, shrinking the normal 40 hours employees spend on the job into 35 or 36. According to pilot studies, productivity improved by 25-40 per cent.
On Tuesday, the UAE announced that beginning on January 1, federal government workers in the country will shift to a four-and-a-half-day work week, with Friday, previously a day off, turning into a half-day. Consequently, the work week is set to shift from the current Sunday-to-Thursday model, used in most countries in the Arab world, to the Monday-to-Friday format more common internationally. The Friday half-day has the dual benefit of retaining the day's sanctity for Muslim religious services while also shortening the week to 36.5 hours.
UAE officials said the new long weekend will "boost productivity and improve work-life balance". This can help both the private and public sector.
The decision applies only to public-sector workers, but it is difficult to imagine that companies will not follow suit
The results from Iceland's trial, which lasted between 2015 and 2019 and applied only to public-sector workers, suggest this is very likely to be the case. In most of the country's government departments, overall output did not suffer from a shorter work week, and in some it improved. Most importantly, workers reported feeling less stressed and healthier, both mentally and physically. While Iceland's trial preceded the pandemic, the added stress factors of Covid-19, combined with the innovations in productivity management brought about by remote working were the primary motivations behind the experiments that have taken place in New Zealand, Spain and other countries.
As NYU Abu Dhabi associate professor Nancy Gleason wrote in an August op-ed in The National, in which she argued for shorter work weeks, the pandemic is "a time to rewrite the capitalist script". Thegovernment has set an example, and one that other employers (particularly those who want to use the Monday-to-Friday model to sync up with clients outside the region) may now follow. This happened in Iceland, where nearly 90 per cent of all workers are now given the option by their employers of working fewer hours without a pay cut.
While the concept of the seven-day week is more than 4,000 years old, first instituted by the ancient Akkadian ruler Sargon the Great in what is now Iraq, the concept of a two-day weekend is much younger. It passed into legislation in Britain, France and the US in the 1930s, after labour unions argued that the then-common practice of either a single-day or 1.5-day weekend was harmful to productivity for the rest of the week. It took decades of lobbying to make the change happen; even though the economics made sense, as productivity increases in the following years showed, commonly held preconceptions associating hours worked with work ethic were too strong.
Champions of an even shorter working week in recent decades have long encountered similar obstacles. But the pandemic has been a significant wake-up call, pushing governments and companies alike to take a more practical, evidence-based look at how best to ensure not only economic but also psychological recovery. In fact, as researchers such as Prof Gleason have observed, the two are closely linked. The UAE's announcement marks a turning point for that research and can set a new standard for working life.
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.”
'Unrivaled: Why America Will Remain the World’s Sole Superpower'
Michael Beckley, Cornell Press
match info
Manchester United 3 (Martial 7', 44', 74')
Sheffield United 0
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
The rules on fostering in the UAE
A foster couple or family must:
be Muslim, Emirati and be residing in the UAE
not be younger than 25 years old
not have been convicted of offences or crimes involving moral turpitude
be free of infectious diseases or psychological and mental disorders
have the ability to support its members and the foster child financially
undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries
RESULTS
Manchester United 2
Anthony Martial 30'
Scott McTominay 90 6'
Manchester City 0
MEYDAN CARD
6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Troy Payne, head chef at Abu Dhabi’s newest healthy eatery Sanderson’s in Al Seef Resort & Spa, says singles need to change their mindset about how they approach the supermarket.
“They feel like they can’t buy one cucumber,” he says. “But I can walk into a shop – I feed two people at home – and I’ll walk into a shop and I buy one cucumber, I’ll buy one onion.”
Mr Payne asks for the sticker to be placed directly on each item, rather than face the temptation of filling one of the two-kilogram capacity plastic bags on offer.
The chef also advises singletons not get too hung up on “organic”, particularly high-priced varieties that have been flown in from far-flung locales. Local produce is often grown sustainably, and far cheaper, he says.
Benefits of first-time home buyers' scheme
Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates
