What will the future workforce look like in the UAE? This is a topic that has engaged UAE cabinet members several times this year and a frequent discussion with long-term UAE expats since the country’s formation. Up until now, no matter how long an expat lived in the UAE, her or his residency would have been tied to their job and required renewal every two to three years.
This status quo appears to be coming to a much welcome end with a range of new measures announced in May, such as a ten-year visa and a separate series of changes focused on expatriate employees’ families and international students unveiled in July.
The changes, announced in Dubai after a Cabinet meeting chaired by UAE vice-president and prime minister Sheikh Mohammed Bin Rashid Al Maktoum, were aimed at reinforcing the UAE’s position as a top destination for global senior talent and international investors.
The most significant change is the highlighted ten-year residency visas that will be available for qualified investors, entrepreneurs and specialists holding post-graduate degrees in medical, technical and scientific research fields expected to be implemented by the end of this year.
Alongside the long-term visa proposal, the UAE announced sweeping new reforms to allow 100 per cent foreign ownership in companies, even those outside of free zones, and long-term residence visas for skilled and creative employment categories.
Students studying in the UAE can now obtain five-year residency visas, while those deemed to be exceptional artists or trades-persons have the opportunity to obtain ten-year permits.
There is also an extension of residency of two years after graduation for non-national students sponsored by their expatriate parents after the completion of their graduate studies to allow them ample time to start a business, join the workforce or take time off to decide on career paths.
Announcing the changes, Sheikh Mohammed stated that the UAE offers an “open and tolerant living environment, deeply-rooted values and excellent infrastructure”.
He added: “Our flexible regulations attract international investments and exceptional talent. The UAE will always shine as the land of opportunities.”
In July, meanwhile, a raft of new visa rules was announced, intending to cater for a broader segment of UAE society, facilitating visas for visitors, residents, families and people overstaying their regular visas.
Transit passengers are now exempted from all entry fees for the first 48 hours, while transit visas can be extended for up to 96 hours for a fee of Dh50 ($14).
Also, a new six-month visa has been introduced for job seekers who overstay their visa but still wish to work in the country.
The aim of the new visa regime and the rules relaxations is a response to the need for a more flexible work environment required to enhance the UAE’s position as technology, design and finance hub and cement it as the destination of choice in the Middle East for talented and ambitious professionals.
According to the UAE government’s 2017 Annual Economic Report, the UAE has a labour force of 6.3m, with 91 per cent of the total male population above the age of 15 in work. The rate of participation of women in the UAE workforce was more than half the male proportion, at about 41 per cent of the total female population, one of the highest in the Middle East.
Currently, the top four sectors by workforce are public administration, defence, wholesale and retail trade and construction. The new visa regime intends to change this by promoting hi-tech and innovation “transformative industries” that require young, multi-lingual, mobile professionals with career ambitions and multinational options.
Although the UAE still has some way to go on permanent residency and citizenship paths, with many groups of workers still unable to apply for these rights, the changes align with the Government’s “Emiratisation” policies to increase the employment of local citizens.
The second phase of the Government’s Emiratisation and direct employment programme will see 3,500 jobs made available in the financial, banking, insurance, retail and tourism sectors. An earlier phase covered aviation, transport, IT, real estate and services and secured 5,740 positions.
Combined with the visa changes, this should help the UAE compete with other hotbeds of talent, such as Hong Kong, Singapore and Silicon Valley. It is a much welcome change for long-standing Expats who feel they can finally lay down a modicum of roots in their adopted country.
