U.A.E Considering Long-Term Business Licenses to Boost the Economy

HE Abdulla Bin Touq Al Marri U.A.E Minister of Economy

 
The United Arab Emirates (UAE) is exploring the introduction of long-term business licenses, including 10-year "golden" licenses and 5-year "silver" licenses. This initiative aims to enhance the country's attractiveness for businesses and investors.

This proposal comes after the successful implementation of the 10-year Golden Visa program launched in 2019, which targets investors, entrepreneurs, and other qualified individuals.

Key Points:

• The new business licenses aim to:
• Increase government revenue
• Promote business continuity and economic growth
• Be competitively priced
• Businesses in the UAE typically operate on one-year licenses with yearly renewals.
• Recent government efforts have streamlined business license approvals, with some licenses issued within minutes.
• The golden and silver licenses are expected to attract more talent and businesses, boosting the UAE's competitiveness.
• This initiative aligns with the UAE's strategy of creating a flexible and competitive business environment.

Benefits:

• Businesses gain long-term stability and reduce renewal hassles.
• SMEs (small and medium enterprises) benefit from increased planning flexibility.
• The UAE strengthens its position as a global business hub.

Next Steps:

• The Economic Integration Committee is finalizing the details of the program.
• The program aims to maintain control over building material prices.

This move reflects the UAE's commitment to fostering a vibrant and sustainable business ecosystem. 

Offer Letter & Employment Contract - The Legal Importance in the U.A.E

 
While a Dubai-based company's offer letter holds weight, its legal enforceability differs from a formal employment contract. Here's a breakdown of the situation and some legal views:

Offer Letter vs. Employment Contract:

• An offer letter outlines the proposed terms of employment, including salary, job title, benefits, etc.
• An employment contract is a legally binding agreement signed by both parties after accepting the offer.

Understanding the Legal Landscape:

• Offer Letter vs. Employment Contract: An offer letter in Dubai holds some weight, but it might not be enough for the Ministry of Human Resources and Emiratization (MoHRE) to intervene. MoHRE typically deals with disputes arising from registered employment contracts, not just offer letters.
• Potential for Legal Action: If you've signed the offer letter and resigned from your current job due to their offer, you might have grounds for a civil case against the company for breach of contract. However, you'd need to prove damages (like lost income).

Legality of Offer Revocation:

• UAE courts generally view offer letters as a form of mutual understanding, not a fully enforceable contract.
• However, if you've signed the offer letter and resigned from your current job based on its terms, the employer's withdrawal could be considered a breach [UAE job offer withdrawal].

Possible Consequences:

• You might have grounds for a civil lawsuit against the company for breaching the offer, particularly if you can prove financial losses due to resigning (e.g., relocation expenses).
• The Ministry of Human Resources and Emiratization (MoHRE) might not get involved unless a formal employment contract exists.

Protecting Yourself:

1. Review the Offer Letter: Look for clauses regarding offer revocation or contingencies.
2. Open Communication: Discuss your concerns with the employer before resigning. They might offer reassurance or a compromise.
3. Prioritize the Contract: Ideally, wait for the formal employment contract and work permit initiation before resigning.

Seeking Further Guidance:

Consulting a lawyer specializing in UAE labor law is highly recommended. They can analyze your specific situation, and the offer letter's details, and provide tailored legal advice.

Remember: While the legal enforceability of an offer letter is limited, it's still a significant document outlining your prospective employment. Taking precautions and seeking legal advice can help you navigate this situation effectively.

Labour Contracts and UAE Labour Law

The UAE regulates employment relationships through Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations in the Private Sector (the "UAE Labour Law"). This law outlines the rights and obligations of both employers and employees.

Labour Contracts:

• A labour contract is a formal agreement between an employer and employee outlining the terms and conditions of employment.
• The UAE Labour Law doesn't mandate a specific format for contracts, but they should adhere to the law's provisions.
• Key elements a labour contract should typically include:
• Job title and duties
• Salary and benefits
• Working hours and leave entitlements
• Probation period (if applicable)
• Termination clauses

Relevant Sections of the UAE Labour Law:

Several sections of the UAE Labour Law are particularly relevant to labour contracts:

• Chapter Two: Employment Contract: Articles 8 through 12 deal with various aspects of employment contracts, including types of contracts, probation periods, non-competition clauses, and outsourcing.
• Chapter Three: Wages and Allowances: Articles 22 through 27 address salary determination and payment, minimum wage requirements, and deductions permitted from employee salaries.
• Chapter Four: Working Hours and Leave: Articles 17 through 33 specify working hours, rest periods, holidays, and various types of leave (annual, sick, maternity, etc.).
• Chapter Five: Termination of Employment Contract: Articles 42 through 49 explain the grounds and procedures for terminating employment contracts by both employers and employees, including notice periods and end-of-service gratuity.

Finding the Law:

• You can find the full text of the UAE Labour Law (Federal Decree-Law No. 33 of 2021) on the Ministry of Human Resources and Emiratization (MoHRE) website: https://www.mohre.gov.ae/  

Are you Looking for a New Job in the U.A.E? Check out our top Picks

Dubai 

 Contrary to what you might expect, the UAE job market seems to be undergoing a shift where hiring is becoming more consistent throughout the year. This means summer isn't necessarily a slow period for recruitment anymore. Here's what we can expect for high-demand jobs this summer:

• Tech & Innovation: The UAE has a strong focus on AI, machine learning, and digital transformation. So, specialists in these areas, along with cybersecurity analysts, software developers, and UI/UX designers are likely to be in high demand [1].
• Business & Finance: Jobs in finance and accounting, particularly for middle management roles, are expected to see a rise. Look out for opportunities for financial analysts, commercial finance managers, and financial planning and analysis managers [2].
• Other In-Demand Roles: Other sectors with consistent hiring needs include hospitality (including tourism professionals and managers), healthcare (including doctors, nurses, and other staff), education (teachers), and administrative support (including HR and office support) [1, 2].

For a more specific idea, you can check out job boards and resources like Bayt.com or Indeed to see what kinds of positions are being advertised right now in the UAE.

Here are some of the most in-demand jobs in the UAE for the coming summer, considering both consistent needs and the focus on hot weather:

• Tech & Innovation: With the UAE's push towards digitalization, expect high demand for specialists in:
• Artificial intelligence (AI)
• Machine learning
• Cybersecurity
• Software development
• UI/UX design (user interface and user experience)

These roles are crucial for businesses to operate efficiently year-round, and the hot summer wouldn't necessarily affect the need for them.

• Business & Finance: The summer months might see a rise in openings for:
• Financial analysts
• Commercial finance managers
• Financial planning and analysis managers

These mid-level management positions are essential for keeping businesses running smoothly, regardless of the season.

• Construction (depending on the specific role): While some construction activities might slow down during peak summer heat, there could still be demand for:
• Project managers
• Engineers (depending on the specialization)
• Quantity surveyors

These roles involve planning, overseeing, and analyzing construction projects, which can potentially continue indoors or during cooler hours.

• Healthcare: The need for medical professionals like:
• Doctors
• Nurses
• Pharmacists
• Other healthcare staff

remains high throughout the year, and might even increase slightly in summer due to heat-related illnesses.

• Hospitality (with some adjustments): While outdoor tourism might decrease, there could be a demand for:
• Hotel staff (especially those managing indoor areas)
• Restaurant staff
• Event planners (for indoor events)

The hospitality sector might need to adjust its offerings during the summer, but skilled professionals will likely remain in demand.

• Administrative Support: Roles like:
• Human Resources professionals
• Office assistants

are consistently needed to keep businesses functioning, and summer wouldn't likely affect this demand.

Remember, this is a general list, and specific needs might vary depending on the industry and location. It's always best to consult job boards like Bayt.com or Indeed for the latest openings.

 There are several effective ways to search for jobs in the U.A.E.:

Online Job Boards:

• Major Platforms: These offer a wide range of opportunities:
• Bayt.com (the largest job site in the MENA region)
• GulfTalent.com (focuses on senior-level and executive jobs)
• Indeed.ae (international platform with UAE listings)
• LinkedIn (powerful for professional networking and job searching)
• Specialized Sites: Consider these for specific industries:
• Gulfjobs.com (dedicated to the Gulf region)
• Naukrigulf.com (popular for Indian professionals in the Gulf)
• Dubaijobs.net (focused on Dubai opportunities)

Government Websites:

• Official UAE Government Portal: Search for federal government jobs https://u.ae/en/resources/government-jobs.
• Individual Emirate Websites: Some emirates like Abu Dhabi list government jobs on their websites.

Other Avenues:

• Recruitment Agencies: Partnering with a recruiter can connect you with hidden opportunities.
• Company Websites: Check the careers pages of companies you're interested in directly.
• Networking Events: Attending industry events can open doors and lead to job leads.

Additional Tips:

• Tailor Your Search: Use keywords relevant to your skills and experience.
• Optimize Your Resume & Cover Letter: Craft compelling documents that showcase your qualifications.
• Set Up Job Alerts: Get notified when new jobs matching your criteria are posted.
• Network & Build Relationships: Connect with people in your field to learn about openings.

By utilizing these methods and staying proactive, you'll increase your chances of finding the perfect job in the U.A.E.

 

The U.A.E 2025 initiative, All Private Sector Employees Get Mandatory Health Insurance

HH Sheikh Mohammed

 Current Situation (as of March 19, 2024):

There is no federal law mandating health insurance for private sector employees across the UAE. However, two individual emirates have implemented mandatory health insurance:

Abu Dhabi: Requires employers to provide health insurance for employees and their families.

Dubai: Requires employers to provide health insurance for employees, with coverage for dependents being optional.

Upcoming Change (effective January 1, 2025):

A mandatory health insurance scheme will be implemented nationwide for private sector employees and domestic workers. Employers will be responsible for covering the cost of this insurance when issuing or renewing residency permits for their workers. 

Starting January 1, 2025, the UAE will require employers to provide health insurance coverage for their private sector employees and domestic workers. This new rule applies to workers obtaining or renewing their residency permits. It marks the second mandatory insurance program for UAE employees, following the implementation of a job loss protection scheme in 2023. 

This initiative aims to improve the competitiveness of the UAE's labor market and guarantee access to quality healthcare for the workforce. 

Health insurance is a fundamental aspect of any comprehensive healthcare system, providing individuals with access to necessary medical services without facing exorbitant costs. By making health insurance mandatory for private sector employees, the UAE is demonstrating its commitment to prioritizing the health and safety of its workforce. 

This new policy is expected to have far-reaching benefits, not only for employees but also for employers and the overall economy. By ensuring that workers have access to quality healthcare services, productivity will likely increase, absenteeism due to illness may decrease, and overall job satisfaction could improve. 

Furthermore, mandatory health insurance can help alleviate the financial burden on individuals and families in the event of unexpected medical emergencies or chronic illnesses. It provides a safety net that offers peace of mind and ensures that individuals can seek medical treatment without worrying about the associated costs. 

In conclusion, the UAE's decision to implement mandatory health insurance for private sector employees from 2025 is a positive development that underscores the country's commitment to the well-being of its workforce. By prioritizing access to healthcare services and financial protection, the UAE is taking a proactive approach to safeguarding the health and livelihoods of its residents.

Dubai Strengthens Economic Powerhouse: Nakheel and Meydan Merge with Dubai Holding

 Dubai is poised for a significant economic boost as Nakheel and Meydan join forces with Dubai Holding under the leadership of Sheikh Ahmed bin Saeed Al Maktoum. This strategic move, directed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, aims to create a unified and powerful entity that will drive growth and solidify Dubai's position as a global competitor. Nakheel and Meydan are merging with Dubai Holding. Here's a breakdown of the key aspects of this merger:

What's Merging:

Nakheel: A prominent real estate developer known for projects like the Palm Jumeirah.

Meydan: A company involved in various sectors, including real estate, hospitality, and entertainment (think Meydan Racecourse).

Dubai Holding: A large investment conglomerate with holdings in sectors like tourism, hospitality, and technology (think Jumeirah Group, Dubai Properties).

How They're Merging:

Nakheel and Meydan will become subsidiaries of Dubai Holding.

Their individual boards of directors will be dissolved.

Operations will be streamlined under the leadership of Sheikh Ahmed bin Saeed Al Maktoum.

Goals of the Merger:

1. Create a More Financially Efficient Entity: By combining resources and expertise, the merger aims to reduce redundancies and boost overall financial strength.
2. Enhance Global Competitiveness: The combined entity will have a much broader and more diversified portfolio, allowing it to compete more effectively in a wider range of markets.
3. Drive Growth for Dubai: The merger is expected to contribute significantly to Dubai's economic growth, aligning with the Dubai Economic Agenda D33.
4. Capitalize on Emerging Opportunities: The new entity will be better positioned to identify and seize new business opportunities across various sectors on a global scale.

Expected Outcomes:

• A stronger and more diversified economic powerhouse in Dubai.
• Increased global reach and competitiveness for Dubai Holding's portfolio.
• Streamlined operations and improved financial performance. 

Key Points:

Merger Creates Economic Powerhouse: Nakheel and Meydan will become part of Dubai Holding, forming a diversified conglomerate spanning sectors like technology, media, hospitality, real estate, and retail.

Enhanced Financial Efficiency: The merger streamlines operations and unites assets worth hundreds of billions, fostering financial strength and global competitiveness.

Leadership for Growth: Sheikh Ahmed bin Saeed Al Maktoum will spearhead the new entity, leveraging expertise across various sectors to achieve Dubai's economic goals and the Dubai Economic Agenda D33.

Building on Success: Dubai Holding's established track record of fostering innovation and knowledge-based economy, along with Nakheel and Meydan's successful ventures in diverse sectors, creates a strong foundation for future growth.

Maximizing Global Reach: The combined entity aims to address the rising demand for specialized services globally, capitalize on emerging opportunities, and cater to long-term global demands.

This strategic vision positions Dubai as a major player in the global marketplace, well-equipped to navigate the evolving economic landscape and deliver long-term success.