What Employers Are Eligible To?

Ministry of Human Resources and Emiratisation have issued a resolution for UAE private sector employersEmployers affected by the precautionary measures to contain the Covid-19 outbreak. What are the options to protect both the businesses and their employees?

Companies registered with the ministry can take actions in the following order:

1. implementing remote working,

2. granting paid leave,

3. granting unpaid leave,

4. reducing salariestemporarily and

5. reducing salaries permanently.

In the case of a permanent salary reduction, the employer must obtain the ministry’s approval.

Companies have the option to send their employees on paid annual leave. While unpaid leave under the UAE Labour Law is only dealt with in very specific scenarios. Employers cannot force employees to take unpaid leave.

The Federal Authority for Government Human Resources and the Ministry of Human Resources and Emiratisation said last week that all public and private sector employees whose work does not require them to be in the office must work from home.

Employers who wish to temporarily reduce salaries during the period of precautionary measures have to draft a “temporary supplement” to the employment contract between the two parties, according to Article Five of the resolution.

The final action available to employers, if all other options are exhausted, is a permanent salary reduction. This must also be agreed upon by the two parties and in writing.

Financial Measures in Dubai to Reduce the Effects of Coronavirus

Emirate introduced powerful measures to protect citizens and businesses from exceptional circumstances brought by Covid-19. Dubai Government developed 17 initiatives focused to ease the financial circumstances for individuals and commercial sector to substantially improve the life and business conditions caused by covid19 outbreak.

The stimulus measures that are introduced with immediate effect will be valid for the next three months. Following this period, the impact of the measures on the economic situation will be reviewed.

Key relief points include:

  • Payment deferral of 3 months for retail loans of affected customers with zero charges and interest waived for the deferral period
  • Interest-free installment offers on loans for school tuition until June 30
  •  A payment deferral of one month will be available on request for all customers holding personal loans, auto loans and / or mortgage loans with no service charge
  • Reduction in bank charges by 50 per cent on early settlement of loans for eligible customers (until June 30) and other.

For SME customers, the banks will defer up to three months of installments for all loan types. The banks are also working with all customers to ascertain the COVID-19 impact on their cash flows, to provide further support in loan restructuring or deferment. The world is going through difficult times but Dubai has navigated challenges successfully.

Dubai announces Dh1.5b economic stimulus package to reduce cost of doing business

Here comes the awesome news for the businesses in Dubai: Under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the Dubai Government on Thursday presented a Dh1.5 billion economic stimulus package for the next three months to support companies and the business sector in Dubai.

The package seeks to enhance liquidity and reduce the impact of the current global economic situation.

Here are the main concerns for the Government today, to take care of the businesses within the country:

  • Cutting costs
  • Simplifying procedures
  • Easing financial burden

Announcing the package, Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai said the challenges the global economy is currently going through have been exacerbated by the worldwide outbreak of the Novel Coronavirus (COVID-19). Sheikh Mohammed bin Rashid issued directives to launch this stimulus package to provide the highest support for citizens, residents and investors in these exceptional circumstances.

Have a Business in Dubai? Watch Your License Carefully

For the business owners and especially start-ups, who are 1 year after your License and are due to renew the license. Please don’t think twice and manage all government fees to be duly paid on time to avoid getting yourself into trouble with the authorities and undoing all your hard work.

An expired business license can get your company heavily fined. A business that is found working with an expired license is also liable for fines up to five thousand dirhams (AED 5,000). Further adding another two hundred and fifty dirhams (AED 250) if the Company repeatedly fails to renew their expired license and the subsequent documentation within the defined time.

Other backdrops are: placing your organization in the line of unnecessary financial risk will most certainly make you look careless, unreliable and unprofessional; your company can be blacklisted:

Being blacklisted not only include having restrictions placed on all kinds of operations, such as:

  • The Company will not be allowed to participate in any business proceedings.
  • Visa could be annulled with a ban on travel.
  • Sponsors could break away from your Company, leaving you in a lurch.
  • The owner, managers, shareholders and directors in some cases could even be deported from the UAE.

You don’t have to panic just yet, as there may be some good news.

Approach my company is case you require an advice and helping hand on the above.

 

Best Time for Self Development

With the world fighting corona virus, UAE has wisely closed all public gatherings and minimized the crowd gathering, businesses allowing to work from home  – this is the best time to set efforts for self-learning. Within the short period of time life will come back to normal. Market will rise even stronger and demand for highly skilled professionals increase. Today, numerous researches show that to deeply know your own profession is good but not enough in case a professional wants to grow in his or her career.

Today’s the challenge is to be able to expand the skills beyond the knowledge that you already have. Taking into account the changes that technology, digital transformation, globalization are bringing to businesses, employers in general are looking for candidates with “specialist skills, industry experience and systems knowledge”.

Today, companies need to adjust to the challenges and opportunities that rise daily in front of their business and faster than ever before, and the need for a meaningful ‘business fit’ for candidates, intensifies. Based on my personal experience my personal advice to is to grow their skills intensely beyond the profession. Start now.

The UAE’s top 10 most in-demand jobs

With economic growth in the UAE which is ‘set to accelerate’ by the government for the years to come, firms that provide specialist services such as Accounting and Audit are one of the highest demand in the UAE. Robert Half company in UAE has recently issued a survey which reveals the top demanded jobs in UAE. According to my personal knowledge, the list can be prolonged due to UAE market is boosting and economy is further growing.

I would recommend for every candidate to not only know and be passionate about own profession but diligently grow the set skills to gain competitive advantage on the market. Specialist technology skills, industry experience, soft skills and systems knowledge are most in-demand. The search for bilingual candidates in the legal and finance sectors is also set to increase, as companies look to comply with international best practice standards.

UAE’s top 10:

  1. Management accountants
  2. CFOs
  3. Risk managers
  4. Heads of digital/digital transformation
  5. Artificial intelligence (AI) developers
  6. HR business partners
  7. Talent acquisition specialists
  8. Legal counsel
  9. Legal assistants
  10. Security analysts

Dubai’s Another Architectural Novelty

Dubai’s skyline with thousands of distinctive silhouettes will be enriched with new unusual Towers. The Two Towers, situated on a distance from each other will be linked with a 9,000-tonne horizontal steel structure. Forming a silhouette of a gigantic H, the bridge will be the longest cantilever in the world and fly over the road. The steel structure will link (at a height of 100 metres) the twin towers Dubai of 300 metres and 235 metres in height. The cost for the project is $1 billion. Designed by Japanese architects Nikken Sekkei, will resemble a giant capital “H” rising near the Dubai World Trade Centre and Dubai’s business district — and not far from the expansive greenery of the Zabeel Park.

One of the main and demanded professions in UAE – are architecture designers and Dubai is the top destination to amaze the most experienced architecture developers in the world.

Dubai International Financial Centre (DIFC) Reported 14% Growth

This Sunday DIFC reported that the total number of companies operating from them grew by 14% to 2,437 companies in 2019 compared to 2018.

The DIFC, which attracted a record-breaking 493 new businesses in 2019, now counts:

 

  • 17 of the world’s top 20 banks,
  • 8 of the 10 leading global law firms,
  • 3 of the top 5 insurance companies and
  • 6 of the top 10 asset managers among its clients.

In total, the Centre is home to 737 active financial firms, representing an 18% increase since 2018, and 64% growth in five years. Notable registrations in 2019 include AntFinancial’s global payments pioneer WorldFirst, Malaysia’s Maybank Islamic Berhad, US financial services firm Cantor Fitzgerald, and Mauritius Commercial Bank.

Dubai International Financial Centre is the leading financial hub in the Middle East, Africa, and South Asia (MEASA) region and has risen up the ranks to eighth position of the GFCI, securing the Centre’s highest ever ranking. DIFC is one of the key initiatives at the forefront of Dubai’s new phase of growth and its efforts to create a business and investment environment that rivals the world’s best.

70% Cut in Business Set-Up Costs

Jebel Ali Free Zone (Jafza), one of the leading free economical zones in UAE, offers 50%-70% fee reductions for licence registration and administration costs. This relates for all companies which already established in Jafza and these who plan to open new business. The offer will immediately assist more than the 7,500 businesses that operate out of Jafza and hundreds of new businesses which are about to join. Moreover, a range of other online services will now be offered free of cost as a direct result of Jafza’s on-going digitalisation process.

The time has never been better to open business! EBS has witnessed the increase in requests from entrepreneurs wishing to open business as well. We are happy to support startups across the world, with the guidance through the process of a company registration. This is only a start of a journey and you may find a reliable business partner with EBS. Reach out to us to see how we can advise you on cost-saving and faster ways to open business in UAE. We enable companies to do business in a smarter way and generate more business.

Business: Digital Transformation Lacks Talent

Accenture has published a research recently, claiming that Artificial Intelligence is expected to contribute up to $182bn to the UAE’s economy by 2035. Organisations in the Middle East and Africa are expected to spend $30 billion (Dh110.1bn) on digital transformation this year, driven largely by industries such as banking and energy.

Researchers are expecting significant growth in technology investment in the coming years and projected that digital transformation spending will grow at a compound annual rate of 18% in the region over the next three years.

One of the top-spenders for digital transformation is the banking and finance industry which predictably will spend $13.23bn on technology this year. However UAE government is pushing digital transformation ahead of any industry and most likely the most advanced change will happen in the government sector firstly.

Resource industries – including oil and gas mining – will spend $5.33bn on technology this year. This is predicted to grow to $5.79bn over the next three years.

Taking into account the rapid development of technology and growing demand in digital transformation services,  lack of good talent may become a hindrance in the ongoing digital transformation drive.