The introduction of a one-year residency permit for remote workers in the UAE will help attract more talent to the region and boost business opportunities, experts said.
On Sunday, Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, announced that overseas remote working professionals could live in the Emirates while continuing to serve their employers in their home country.
Bernard Lee, chief executive of GlassQube Coworking, a workspace operator that has four locations in Abu Dhabi, said the visa was extremely attractive for international corporations and small and medium-sized enterprises.
"Essentially it could lower the cost of setting up teams and a large office base here," Mr Lee said.
“Instead, companies could send in exploratory teams, even one or two employees, that are fully protected as domestic residents.
“By doing that they have a chance to really see what the business landscape has to offer them without investing large sums of money upfront.”
For it to be truly attractive, Mr Lee said the cost of the visa would have to be “materially less than setting up a branch LLC” in the country.
“It will be interesting to find out what the costs are, once more details come out,” he said.
Murtaza Khan, managing partner for the Middle East and Africa at Fragomen, an immigration consultancy, said the move caters to people whose nature of work allows them to adopt the “work from anywhere model” that has become more prevalent in the Covid-19 age.
“This provides a legal way for foreign nationals to live and work in the UAE, but where their actual job or place of work in the true sense is outside of the UAE,” he said.
He said a remote working programme launched in Dubai in October had already proven successful.
“The scheme has already helped attract many remote workers to Dubai, not only by providing this pathway for a visa, but by the overall proposition of the UAE as a destination, in terms of the quality of life and high-quality infrastructure.”
He said the time zone for people coming from western Europe made it manageable for remote working, and in recent months, his consultancy has seen interest from North America too.
“This will have a knock-on impact on the economy in terms of the spend of foreign nationals residing in the UAE," he said.
"But more importantly it attracts the talent, and often those in the generation belonging to the gig economy – specifically technology."
As this influx of talent arrives in the country, Mr Khan said they are able to further connect with the industry and possibly explore opportunities available to them, such as establishing a main office.
In a tweet on Sunday, Sheikh Mohammed wrote that the UAE's development is continuous and change will not stop.
"Our teams continue day and night to consolidate our international economic and political position and establish a quality of life that is the best in the world for our people and all those residing here," he said.
Louise Vine, managing director of Inspire Selection, a recruitment firm, said the availability of a residency visa for remote workers opens doors for companies based overseas who want a presence in the UAE.
“[They can explore opportunities] without having to get a full trade licence, office space and workforce,” she said.
“It will, therefore, increase the number of opportunities to candidates and consumers, giving them more choice.
“Sales managers or key account managers are likely to be employees to take advantage of this new visa.”
If a company has historically had an office here but had to close during the pandemic, Ms Vine said the new Cabinet decision meant they could still do some business locally.
“Rather than shutting the door on doing any business face to face in the UAE, companies could now allow the opportunity for one or two key workers to remain in the country, legally,” she said.
“Whereas previously, someone may have either visited from overseas on a renewable tourist visa, they can now avail the benefits of being a resident.”
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
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Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
What is Diwali?
The Hindu festival is at once a celebration of the autumn harvest and the triumph of good over evil, as outlined in the Ramayana.
According to the Sanskrit epic, penned by the sage Valmiki, Diwali marks the time that the exiled king Rama – a mortal with superhuman powers – returned home to the city of Ayodhya with his wife Sita and brother Lakshman, after vanquishing the 10-headed demon Ravana and conquering his kingdom of Lanka. The people of Ayodhya are believed to have lit thousands of earthen lamps to illuminate the city and to guide the royal family home.
In its current iteration, Diwali is celebrated with a puja to welcome the goodness of prosperity Lakshmi (an incarnation of Sita) into the home, which is decorated with diyas (oil lamps) or fairy lights and rangoli designs with coloured powder. Fireworks light up the sky in some parts of the word, and sweetmeats are made (or bought) by most households. It is customary to get new clothes stitched, and visit friends and family to exchange gifts and greetings.
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Building boom turning to bust as Turkey's economy slows
Deep in a provincial region of northwestern Turkey, it looks like a mirage - hundreds of luxury houses built in neat rows, their pointed towers somewhere between French chateau and Disney castle.
Meant to provide luxurious accommodations for foreign buyers, the houses are however standing empty in what is anything but a fairytale for their investors.
The ambitious development has been hit by regional turmoil as well as the slump in the Turkish construction industry - a key sector - as the country's economy heads towards what could be a hard landing in an intensifying downturn.
After a long period of solid growth, Turkey's economy contracted 1.1 per cent in the third quarter, and many economists expect it will enter into recession this year.
The country has been hit by high inflation and a currency crisis in August. The lira lost 28 per cent of its value against the dollar in 2018 and markets are still unconvinced by the readiness of the government under President Recep Tayyip Erdogan to tackle underlying economic issues.
The villas close to the town centre of Mudurnu in the Bolu region are intended to resemble European architecture and are part of the Sarot Group's Burj Al Babas project.
But the development of 732 villas and a shopping centre - which began in 2014 - is now in limbo as Sarot Group has sought bankruptcy protection.
It is one of hundreds of Turkish companies that have done so as they seek cover from creditors and to restructure their debts.
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
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Profile of Foodics
Founders: Ahmad AlZaini and Mosab AlOthmani
Based: Riyadh
Sector: Software
Employees: 150
Amount raised: $8m through seed and Series A - Series B raise ongoing
Funders: Raed Advanced Investment Co, Al-Riyadh Al Walid Investment Co, 500 Falcons, SWM Investment, AlShoaibah SPV, Faith Capital, Technology Investments Co, Savour Holding, Future Resources, Derayah Custody Co.
EMERGENCY PHONE NUMBERS
Estijaba – 8001717 – number to call to request coronavirus testing
Ministry of Health and Prevention – 80011111
Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre
Emirates airline – 600555555
Etihad Airways – 600555666
Ambulance – 998
Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries