Dubai's trial of a shorter working week is being led by the government; state buy-in is an important part of embedding such major societal and economic changes. Getty
Dubai's trial of a shorter working week is being led by the government; state buy-in is an important part of embedding such major societal and economic changes. Getty
Dubai's trial of a shorter working week is being led by the government; state buy-in is an important part of embedding such major societal and economic changes. Getty
Dubai's trial of a shorter working week is being led by the government; state buy-in is an important part of embedding such major societal and economic changes. Getty


Dubai's four-day week trial could revolutionise working hours


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August 09, 2024

An announcement by Dubai authorities that for the next seven weeks employees at 15 government entities will work a four-day week has generated a buzz among those advocating for a rethink about society’s relationship with the workplace. The pilot scheme, which will also see shifts reduced to seven hours, is in line with Dubai, and the UAE more widely, consistently seeking ways to improve people’s living conditions.

For as long as almost anyone alive almost anywhere in the world can remember, work life has followed a familiar pattern: five days on, two days off. The week, the weekend. That model has its roots in the Europe of the Industrial Revolution. In the Gulf, this arrangement became the norm in the mid-20th century, largely a byproduct of the global oil industry’s role in the region’s nascent economies. But a 21st-century world of Zoom calls, hybrid working and flexible hours is making it necessary to question long-held assumptions.

The UAE has a well-deserved reputation for innovation. From striving to diversify its economy to investing in renewable energy, the country takes a pro-active, long-term approach to meeting the challenges thrown up by an age of disruption. It is unsurprising, then, the country would serve as a stage for innovation in the area of work-life balance. Country-wide adoption of remote working when needed is one way, in addition to Sharjah’s successful introduction of a four-day working week in 2022.

There are pros and cons to a four-day week; proponents say it can improve employees’ mental health, increase job satisfaction, boost productivity and help organisations to retain talent. Critics claim it can lead to scheduling difficulties and may not be suitable for every industry. What is necessary to prove or disprove these claims is evidence, and Dubai’s pilot scheme will give the authorities plenty of data upon which to make a policy decision.

In this regard, Dubai is in step with other countries that have examined the consequences of a four-day week, with interesting results. A six-month study of 41 Portuguese companies last year revealed that a shortened working week led to work exhaustion falling by 19 per cent and challenges to maintaining a work-life balance dropping from 46 per cent to 8 per cent. In 2022, nearly 3,000 employees across 61 British companies that trialled a shorter working week reported lower stress and better health. None of the participants wanted to return to a five-day week.

Dubai is also an international hub for commerce and finance; this trial could determine if less work and more play can compliment a booming economy

What is different in Dubai is the fact that this trial is being led by the government. State buy-in is an important part of embedding such major societal and economic changes. Dubai is also an international hub for commerce and finance; the findings from this trial could determine if less work and more play can compliment and maintain a booming UAE economy.

This approach of valuing employee welfare while remaining focused on delivery was articulated by Abdullah Al Falasi, director general of the Dubai Government Human Resources Department. “We aim to improve the quality of life of employees and enhance the sustainability of government resources,” he said, adding that this “ultimately contributes to consolidating Dubai’s global position as a preferred city for living and working by providing a new model experience that integrates the elements of quality of life”.

For those Dubai employees embarking on this study, the next seven weeks will be an interesting journey. If successful, it is a journey that more employers may consider taking in the months and years ahead.

Predictions

Predicted winners for final round of games before play-offs:

  • Friday: Delhi v Chennai - Chennai
  • Saturday: Rajasthan v Bangalore - Bangalore
  • Saturday: Hyderabad v Kolkata - Hyderabad
  • Sunday: Delhi v Mumbai - Mumbai
  • Sunday - Chennai v Punjab - Chennai

Final top-four (who will make play-offs): Chennai, Hyderabad, Mumbai and Bangalore

Asia Cup 2018 final

Who: India v Bangladesh

When: Friday, 3.30pm, Dubai International Stadium

Watch: Live on OSN Cricket HD

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Tips for newlyweds to better manage finances

All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.

Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.

Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.

Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.

Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.

Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.

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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.”

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

THE SPECS

Aston Martin Rapide AMR

Engine: 6.0-litre V12

Transmission: Touchtronic III eight-speed automatic

Power: 595bhp

Torque: 630Nm

Price: Dh999,563

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

Updated: August 09, 2024, 11:57 AM