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.
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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
Asia Cup Qualifier
Final
UAE v Hong Kong
Live on OSN Cricket HD. Coverage starts at 5.30am
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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The specs
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Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
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More from Neighbourhood Watch:
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
THE SPECS
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Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now