The most recent work system will bring the financial sector closer to global stock exchanges, banks, and financial institutions, advancing business and international commerce.
According to analysts, the UAE's new labor system intends to attract foreign investments, boost its business and tourism attractiveness, and link its financial sector with worldwide markets, all of which will give more significant returns than the current system.
According to analysts and senior corporate leaders, the new work structure will bring the UAE's financial sector closer to global stock markets, banks, and financial institutions and enhance commercial and foreign commerce.
The new working week will begin next month and make international business transactions easier for local banks and enterprises. According to experts, aligning working weekdays with the rest of the globe allows the private sector to conduct uninterrupted operations, resulting in increased growth and profits.
ON TUESDAY, the UAE said that beginning in 2022; it would switch to a working week that finishes on Friday afternoon, with a Saturday-Sunday weekend rather than Friday and Saturday. State enterprises will be affected by the change, while private businesses will pick their working week.
"It is a significant move in addition to other reforms introduced by the government in the recent past," she said.
"With the Friday and Saturday weekend in the UAE, there is a cumulative three days off work if any entity is dealing with the western or Asian country. With the new Saturday-Sunday weekend schedule, the UAE is trying to align with the rest of the world and thus save one day," Munshi told Khaleej Times.
He said there had been a progressive thought of limiting working days to four instead of the current five. "By the four-and-half-day week, the UAE is trying to be a pioneer in such change. Though such change may benefit international business, it will take a while for the people of UAE to adjust to this change as traditionally, the Friday-Saturday weekend gels well with the local culture. The new year will bring a lifestyle change for most UAE residents due to the weekend change," he said.
In reply to a question, he said it is difficult to forecast an immediate financial impact on the economy. Still, the sectors that deal internationally like forex, banks, shares, and multinationals will benefit from the move.
According to Saad Maniar, a senior partner at Crowe, it will improve people's health and well-being, resulting in increased productivity. However, the cost of conducting business will rise in the medium run as workers adjust to the shorter workweek and attain operational efficiency. Also, changing to a new work schedule requires a lot of planning, and it will take time, he noted.
"The UAE will attract investments which will add to the robustness of the banking and financial sectors, both of which have already seen stellar growth in the past few years. In conjunction with the recent reforms in legislation affecting personal laws, this signals the UAE's intent to make itself an attractive destination from an investor perspective and for expatriates to consider as a migration destination. This influx of workforce and finances could lay the required foundations for the long-term success of the UAE," Abraham told Khaleej Times.
A working Friday, he claims, guarantees an extra 24 hours of inflow/outflow of transactions in rhythm with the world's banking and financial markets. This is a massive benefit for overseas investors, especially those who want to trade before the Friday closing bell. This will strengthen the UAE's position as a global financial center and as a conduit for Mena investors to access international markets and vice versa.
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Source: Khaleej Times