A trial in Iceland to introduce a four-day working week has resulted in a boost in productivity and a fall in stress levels.
The world’s second-happiest nation, according to surveys, conducted a series of experiments over a four-year period involving 2,500 people – around one per cent of the population.
Many of the people who took part in the public sector trial went from a 40-hour working week to a 35 or 36-hour week.
I can’t see it working as it doesn’t make sense for companies here
David Mackenzie,
Mackenzie Jones
The National spoke to some of the UAE’s leading employment experts to see if this most Scandinavian of models could be imported to the Gulf region.
Their answers made disappointing reading for those hoping to get an extra day off work to soak up the sun.
“I can’t see it working as it doesn’t make sense for companies here,” said David Mackenzie, group managing director at recruiters Mackenzie Jones.
“There has always been a culture of hard work and putting in reasonably long hours in the UAE.
“I can’t say that changing unless the public sector introduces it first, with the private sector following its lead.”
The Iceland trials, run by Reykjavik City Council, saw a host of workplaces taking part –including schools, hospitals, social service providers and offices.
The trials were so successful that many have adopted the four-day week as a permanent model.
Now the vast majority of Iceland’s workforce – 86 per cent – has been able to move to a 35 to 36-hour week without taking a pay cut.
Mr Mackenzie said that would not be the case with companies in the UAE.
“The first thing employers will do is say you are only working four days a week now so we are reducing your salary by a day,” he said.
“Employers will not pay people more for doing less.”
He said the economies in Iceland and the UAE were completely different and what worked for Iceland would not necessarily work in other markets.
“I can’t see the UAE being able to move to a four-day working week, because of the type of people who work here and the type of people who run companies here,” he said.
“The UAE has a 50-year-old economy while Iceland’s is more than 400 years old; you are not comparing like for like.”
He said the first hurdle to the adoption of a four-day working week in the UAE was an obvious one – people come to the region to work.
Around 50 per cent of the Gulf’s population are foreign workers. In the UAE and Qatar, that figure is even higher, at 85 per cent.
“If somebody said would you take a day’s less money but you get an extra day on the beach, would you take it?” he said.
“Some of the younger people might, but most people who are here to focus on their career and provide for their families would want to carry on working five days a week.
“The people who come here just for the lifestyle don’t tend to stay that long anyway.”
The pandemic was another factor that worked against the adoption of a four-day working week, according to Mr Mackenzie.
“It doesn’t seem logical when you consider we are coming out of such a difficult time with a huge amount of people out there who have been made redundant,” he said.
“People are more likely to be interested in working an extra day for more pay right now.”
The results of the study in Iceland were published as a study by UK-based think tank Autonomy and the research organisation Association for Sustainability and Democracy (Alda) in Iceland.
“The Icelandic shorter working journey tells us that not only is it possible to work less in modern times, but that progressive change is possible too,” said Gudmundur Haraldsson, a researcher at Alda.
Iceland is not the only country in the world to explore a four-day working week though.
Earlier this year, the Spanish government announced it would be testing out the concept of a 32-hour working week, while New Zealand Prime Minister Jacinda Ardern said employers should consider a four-day week to help employees obtain a healthy work/life balance.
The consumer goods firm Unilever announced in November last year it was introducing a four-day working week in New Zealand that would run until December of this year, with staff not having to take a salary reduction.
Another Dubai recruiter, Ian Jenkins, said the more successful firms would not simply be focusing on for how long somebody was working.
“The focus should be on output rather than attendance,” he said.
He also said it was unlikely the UAE could adopt a four-day working week without employees having to take a hit on their wages.
“The UAE is a service-led economy. Assuming there was no change in salaries, this would mean going to a four-day week would raise costs for service providers,” he said.
He also questioned whether the model was practical, with so many still working remotely due to the pandemic.
“The lines between work and home were blurring increasingly with employees expected to be always on regardless of working hours, this was driven by smartphones and digital working practices pre-pandemic,” he said.
“Remote working during the pandemic has increased this pressure,” said Mr Jenkins.
“A four-day week would only work when the employer has a respect for the employee’s right to disconnect outside office hours.”
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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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
UAE currency: the story behind the money in your pockets
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
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