To better align its economy with global markets, the United Arab Emirates will switch to a four-and-a-half-day work week. With a Saturday-Sunday weekend beginning next year, private companies will be free to choose their working week. The oil-producing Gulf state, which serves as the region’s commercial, trade, and tourism hub, is currently closed on Fridays and Saturdays. However, beginning on January 1, 2022, the weekend will begin on Friday afternoon, including for schools, according to a government circular.
“Each company, depending on the sector they operate in and what suits and serves their business best can choose the weekend”, Minister of Human Resources and Emiratisation Abdulrahman al-Awar informs Reuters. In the last year, the UAE has taken steps to make its economy more appealing to foreign investment and talent. Despite the country’s growing economic rivalry with Saudi Arabia.
The move will ensure smooth financial, trade, and economic transactions with other countries
To address any religious sensitivities in the Sunni Muslim-ruled country, where expatriates make up the majority of the population. The government announced that work would end at noon on Friday before Muslim prayers. It would be unified across the UAE. It stated that the long weekend would improve employees’ work-life balance and mentioned that several Muslim-majority countries, including Indonesia and Morocco, have Saturday-Sunday weekends. According to the UAE, the move will “ensure smooth financial, trade, and economic transactions with countries that follow a Saturday-Sunday weekend, facilitating stronger international business links and opportunities” for UAE-based and multinational firms.
According to al-Awar, the change will have an impact on state entities such as the central bank, which will communicate details about the new working hours to commercial banks. UAE stock exchanges will also be more integrated with global markets. “This change will enhance the integration of the banking sector in the UAE with the banking community internationally. It will eliminate the gap that existed in the past,” he said. (wbctx.com)
Monica Malik, an economist at Abu Dhabi Commercial Bank, expects many private sector companies in the UAE to follow the Saturday-Sunday weekend. Calling the move a “very meaningful development” in addition to other recent reforms. To attract businesses and talent. The UAE has liberalized laws concerning cohabitation before marriage, alcohol, and personal status, as well as introducing longer-term visas.