• The majority of workers favour a 'hybrid' model that allows them to either work from home or in the office. Getty
    The majority of workers favour a 'hybrid' model that allows them to either work from home or in the office. Getty
  • Many employers said the main challenge is ensuring staff can show they are productive long-term
    Many employers said the main challenge is ensuring staff can show they are productive long-term
  • Workers in all sectors, from government to private, are finding their bosses are more open to full or part-time working from home
    Workers in all sectors, from government to private, are finding their bosses are more open to full or part-time working from home
  • Working from home has its challenges, with the need for a proper work space and a routine - include healthy eating. Getty Images
    Working from home has its challenges, with the need for a proper work space and a routine - include healthy eating. Getty Images
  • Workplace experts say some people struggle to remain productive while working from home. Getty
    Workplace experts say some people struggle to remain productive while working from home. Getty
  • And for some it leads to feelings of isolation. Bloomberg
    And for some it leads to feelings of isolation. Bloomberg
  • Back to back Zoom meetings may be useful at checking up on employees , but can be time consuming and unproductive. Reuters
    Back to back Zoom meetings may be useful at checking up on employees , but can be time consuming and unproductive. Reuters

Dubai remote and hybrid working: UAE companies adopt new long-term work models


Patrick Ryan
  • English
  • Arabic

Companies across the UAE are adapting to hybrid working models for the long-term as staff begin to return to the office.

Employment experts told The National of a "big shift" taking place, after many employees spent more than a year working from home during the pandemic.

They said companies would have to adapt to a new normal, because staff would expect to be allowed to mix days at the workplace with remote work.

A recent survey of almost 1,100 employers and employees in the region found more than two thirds of employers were operating with a hybrid model.

A lot of companies are now allowing staff to do three days at home and work in the office for the other two days

Of the companies surveyed by Hays recruitment, 69 per cent said they offered remote work options, compared with only 43 per cent before the pandemic.

“We believe hybrid working models will continue in the long term as more and more organisations incorporate remote working options as part of their standard working patterns,” said Chris Greaves, managing director of the Gulf region for Hays.

“Of the 69 per cent of employers who now offer hybrid working models, none specified that they would remove this option and instead they are looking to realise the benefits it can provide, the only exception to this being service-related roles and industries where office working is essential to business.”

Rise of the split working week

The trend echoes the model used by major global employers.

At banking giant JP Morgan Chase, some employees can schedule work from home days – but on Mondays and Fridays they must be in the office, a Wall Street Journal report said. At global commerce firm Salesforce, which employees about 50,000 people, Thursdays are the most popular in-office day – prompting the company to rethink its layout and cater to demand for meeting rooms.

David Mackenzie, managing director of Mackenzie Jones. Courtesy: Mackenzie Jones
David Mackenzie, managing director of Mackenzie Jones. Courtesy: Mackenzie Jones

David Mackenzie, managing director of Dubai recruitment agency Mackenzie Jones, said local employers have seen a similar trend.

“We are seeing a big shift in people coming back to the office,” he said.

“A lot of companies are now allowing staff to do three days at home and work in the office for the other two days,” he said.

Mr Mackenzie said there was also appetite among businesses in the region for more face-to-face interaction after months of endless video conferences.

“Businesses won’t grow by staff being constantly at home as you can’t build relationships on Zoom,” he said.

“The informality of work has been lost due to Covid-19 as you don’t have that networking opportunity over a coffee, or chatting to a colleague in the corridor.

“That has to come back, as it’s a key part of how many businesses function.”

Mr Mackenzie said there could be a split between those who were attuned to working from home and others who found it difficult.

“Those who are not good with people will love working from home, and some are also so used to their work-life pattern right now that they might look for another job if work asked them to start coming in,” he said.

Mr Mackenzie said others could not wait to go back to the office because of sheer boredom.

“We’re moving talent around in the UAE at the moment because people have been stuck in their house for the past year and a half staring at a screen,” he said.

“It’s made them realise it’s not the company they want to work for. As soon as something good comes up they are leaving.”

Offices no longer simply 'containers' for staff

A senior figure from one of the region’s leading property companies said the widespread adoption of a hybrid working model was inevitable, with or without Covid-19.

“It is important to note that this trend is something that has not purely stemmed from the pandemic but has certainly been accelerated by it,” said Anthony Spary, head of landlord agency and retail for CBRE.

“From the perspective of both investors and occupiers, office space is now transitioning to become more of a multi-faceted service, rather than just a container for employees.

“The most appropriate model will differ from industry to industry, and will be more than just working from the office or working from home.”

Claire Donnelly co-runs human relations and business consultancy MHC. Antonie Robertson/The National
Claire Donnelly co-runs human relations and business consultancy MHC. Antonie Robertson/The National

Another of the region’s leading recruiters has already adopted a hybrid model, with employees working from the office three days a week in Dubai’s DIFC and from home the rest of the time.

“This hybrid work model is working well for us as a recruitment company, and globally as a company, our productivity is back to 2019 levels with 70 per cent of our consultants working remotely,” said Jon Ede, regional director in the Middle East for Michael Page.

“Our employees are finding the flexibility beneficial in terms of priority and time management.”

Some companies simply do not want staff to come back to the office, as they look to keep down costs.

“I think companies are starting to ask – do we even need an office any more,” said Claire Donnelly, who runs HR and business consultancy MHC.

“That’s especially the case for SMEs, who will be thinking, ‘If we can work virtually, why do we even need our staff to be in the UAE, when they can work remotely from other countries and save money on gratuity?

“The world is opening up.”

Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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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

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