50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

UAE to shift to Saturday-Sunday weekend in line with global markets

Published 12/07/2021, 04:02 AM
Updated 12/07/2021, 10:02 AM
© Reuters. FILE PHOTO: A general view of the Burj Khalifa and the downtown skyline in Dubai, United Arab Emirates, June 12, 2021. Picture taken June 12, 2021. REUTERS/Christopher Pike/File Photo

By Davide Barbuscia and Ghaida Ghantous

DUBAI (Reuters) -The United Arab Emirates will shift to a working week of four and half days with a Saturday-Sunday weekend from the start of next year to better align its economy with global markets, but private companies will be free to choose their own working week.

The oil-producing Gulf state, the region's commercial, trade and tourism hub, currently has a Friday-Saturday weekend. From Jan. 1, however, the weekend will start on Friday afternoon, including for schools, a government circular said.

"Each company, depending on the sector they operate in and what suits and serves their business best, can choose the weekend they decide for their employees", Minister of Human Resources and Emiratisation Abdulrahman al-Awar told Reuters.

Over the past year, the UAE has taken measures to make its economy more attractive to foreign investment and talent at a time of growing economic rivalry with Saudi Arabia.

Addressing any religious sensitivities in the Sunni Muslim-ruled country, where expatriates make up most of the population, the government said work on Friday would end at 12 noon before Muslim prayers, which would be unified on Friday across the UAE.

It said the longer weekend would improve employees' work-life balance and noted that several majority-Muslim nations, such as Indonesia and Morocco, have Saturday-Sunday weekends.

The UAE said the move would "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.

The change will impact state entities like the central bank, which would communicate details about the new working hours to commercial banks, said al-Awar, adding that UAE stock exchanges would 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.

Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital, said the financial sector would benefit from being able to make simultaneous payment settlements with developed markets and the tourism industry would also be a beneficiary.

"It could be a good experiment for other countries in the region," he said.

Friday is a weekly holiday in the other five Gulf Arab states and many predominantly Muslim countries.

© Reuters. FILE PHOTO: General view of the Burj Khalifa and the downtown skyline in Dubai, United Arab Emirates, September 30, 2021. REUTERS/Mohammed Salem/File Photo

Monica Malik, an economist at Abu Dhabi Commercial Bank, said she expects many private sector companies in the UAE to follow the Saturday-Sunday weekend, describing the move as a "very meaningful development" alongside other recent reforms.

The UAE has liberalised laws regarding cohabitation before marriage, alcohol and personal status laws in addition to the introduction of longer-term visas to lure businesses and talent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.