Sharjah’s four-day work week leads to big cut in road-related accidents and deaths

Eight months after Sharjah adopted a four-day work week, the number of road-related accidents and deaths in the emirate has been slashed by 40 per cent.

In the first three months of the year, the emirate noted a huge reduction in traffic accidents and fatalities compared with the same period last year.

Findings from a study presented at a Sharjah Executive Council meeting on Tuesday attributed the drop in road traffic accidents to the new working week.

Officials said there has also been a significant boost in government employee productivity. Those working in departments that enjoy a Friday to Sunday weekend reported feeling healthier and happier, with more time to spend with their families.

As a result, customer happiness also improved across a number of Sharjah government services.

The study was based on experiences from workers in the policing, environment, human resources and financial sectors in the emirate.

In addition to a decrease in traffic accidents and casualties, the shift to the new work week also resulted in a significant drop in the emission of gases such as carbon monoxide, sulphur dioxide and nitrogen dioxide. This is because fewer people were commuting to work.

Sharjah rang in the changes on January 1 by introducing a four-day work week after the UAE federal government adopted a Saturday-Sunday weekend, with half a day of work on Fridays.

In June, The National spoke to people in the emirate about how life had changed since the new working practices were implemented.

Emirati Nassir Al Kashwani, who works for the Sharjah Department of Finance, said he was a happier and more engaged parent.

“I have four children and I'm spending more time with them. I have become more of a friend to them than just a father," Mr Al Kashwani said.

"I have built a strong bond with the children and have discovered more about their interests".

A three-day weekend has been a blessing for the restaurant industry, especially after the pandemic.

Restaurants and hotels have since a boost in trade with people having more leisure time.

The move a four-day work week has gathered pace around the world.

In February, Belgium made the switch without loss of salary, while the UK began a trial of a four-day working week in June.

In Scotland, a government trial is due to start in 2023, while Wales is also considering it.

At Tuesday’s meeting, the Sharjah council directed a follow up to the study until the end of the year, where it will reassess the pros and cons of the new work week.

UAE work week changes - in pictures

The UAE changed its working week in January 2022. Federal and local government staff now work from 7.30am to 3.30pm, from Monday to Thursday, and from 7.30am to midday on Friday. Sarah Dea / The National
Friday sermons and prayers are held at 1.15pm after the working week changes. Chris Whiteoak / The National
Schools in the UAE scheduled lessons in line with major changes to the working week. Chris Whiteoak / The National
No specific instructions or guidance was made relating to the private sector, but companies do not require the government’s permission to set their working week. Victor Besa / The National.
The new long weekend would ‘boost productivity and improve work-life balance’, the UAE Government Media Office said in a tweet in January when the changes were introduced. Paulo Vecina / The National

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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

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.