For most of the last three decades, our region has enjoyed prosperity and high levels of growth. This was driven by oil wealth, and the regional governments’ ability to channel oil revenues into building First World infrastructure and living conditions.
However, oil market dynamics have changed – catalysed by the shale revolution, the reduced cost of producing renewable energy, and a global focus on carbon emissions. The pandemic has added to the challenges as core hydrocarbon demand dropped globally.
Today, there is broad recognition that GCC countries are in a race against oil prices, which is notable as countries have accelerated the economic diversification process.
Economic diversification can be achieved through several factors: attracting FDI; import substitution; (non-oil) export orientation; and regional co-operation. All entail investments in policy, infrastructure, technology, and particularly people.
Attracting and training foreign talent is important to our region due to its contribution – not just to productivity and innovation brought in by the added knowledge and skillset – but also to propel local consumption growth, thereby driving prosperity for businesses. Profitable local businesses, in turn, invest in their own talent, technology, and equipment – creating a virtuous cycle of growth.
This is particularly relevant in the new normal, where ‘work from home’ trends and connectivity make competition for talent global, and less affected by geography.
Foreign labour in the GCC benefits from a zero-tax environment and, for the most part, first world infrastructure.
Over the last decade, the UAE has passed several decrees to protect workers' rights. That has led to transparency in employment terms and made it easier for workers to switch employers.
Recently, Saudi Arabia overhauled its employment visa sponsorship system and new rules are set to come into force in March 2021. Employees will be free to switch jobs, travel abroad, or leave the country permanently without an employer’s permission. In Bahrain, the sponsorship (Kafala) system was overhauled as far back as 2009.
The aforementioned sponsorship-related reforms are attractive to individuals and permit the free movement of labour promoting healthy competition between corporates for workers.
In the UAE, the cabinet announced sweeping reforms to personal and family law, allowing personal matters such as divorce and inheritance to be enforced according to expatriates’ nationalities and the laws of the countries specified in wills. The legal overhaul also decriminalises alcohol consumption and cohabitation before marriage.
These reforms, combined with attractive tax regimes, high quality infrastructure and sunshine should make GCC countries attractive for people to work and live in. The work from home trend also provides extra working flexibility for the talent we want to attract. Most GCC countries offer excellent infrastructure – making home working attractive.
Looking ahead, there is the opportunity to leverage this further with adequate residency and licensing reforms. Dubai’s government recently announced a remote working visa allowing workers to serve their employers whilst living in the emirate.
Whilst harnessing global talent to drive our economies, the Gulf countries will generate growth across industries and create opportunities to invest in our citizens. Upskilling, training, and increased employment of nationals is essential for sustainable job creation across the Gulf – a social and economic imperative in countries such as Saudi Arabia where over 50 per cent are still employed by the public sector. With 70 per cent of the population under 35 years old, and increased female participation, the GCC region’s youth is hungry for opportunities.
To integrate youth into the economy beyond simply replacing public sector jobs with private sector ones, we can equip them with the necessary skillset to propel the private sector forward themselves, by generating entrepreneurial opportunities. Incubators and accelerators can be established, and governments can play an indirect, facilitating role through educational and training initiatives such as a flexible approach to university student internships.
The private sector could be incentivised to create programmes fostering youth entrepreneurship via community level partnerships. Franchise operators could be encouraged to sub-franchise to young locals. Governments could provide financing whilst corporates provide the training and operational support. For operators, it would accelerate expansion and growth, whilst serving a key social imperative.
Reducing business start-up costs and providing greater governmental support to start-ups in key industries, are also essential for more grassroots entrepreneurship involvement.
The adverse economic impact of Covid-19 has not spared the GCC, but with diverse reforms – we can achieve a greater capitalisation of human resources.
That means better prospects for businesses, citizens, and residents.
Huda Al Lawati is a partner at Gateway Partners, a Singapore and Dubai-based alternative investment manager
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Killing of Qassem Suleimani
RESULT
Bayern Munich 5 Eintrracht Frankfurt 2
Bayern: Goretzka (17'), Müller (41'), Lewandowski (46'), Davies (61'), Hinteregger (74' og)
Frankfurt: Hinteregger (52', 55')
Brolliology: A History of the Umbrella in Life and Literature
By Marion Rankine
Melville House
Other must-tries
Tomato and walnut salad
A lesson in simple, seasonal eating. Wedges of tomato, chunks of cucumber, thinly sliced red onion, coriander or parsley leaves, and perhaps some fresh dill are drizzled with a crushed walnut and garlic dressing. Do consider yourself warned: if you eat this salad in Georgia during the summer months, the tomatoes will be so ripe and flavourful that every tomato you eat from that day forth will taste lacklustre in comparison.
Badrijani nigvzit
A delicious vegetarian snack or starter. It consists of thinly sliced, fried then cooled aubergine smothered with a thick and creamy walnut sauce and folded or rolled. Take note, even though it seems like you should be able to pick these morsels up with your hands, they’re not as durable as they look. A knife and fork is the way to go.
Pkhali
This healthy little dish (a nice antidote to the khachapuri) is usually made with steamed then chopped cabbage, spinach, beetroot or green beans, combined with walnuts, garlic and herbs to make a vegetable pâté or paste. The mix is then often formed into rounds, chilled in the fridge and topped with pomegranate seeds before being served.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Killing of Qassem Suleimani
Zayed Sustainability Prize
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
More from Neighbourhood Watch:
How to increase your savings
- Have a plan for your savings.
- Decide on your emergency fund target and once that's achieved, assign your savings to another financial goal such as saving for a house or investing for retirement.
- Decide on a financial goal that is important to you and put your savings to work for you.
- It's important to have a purpose for your savings as it helps to keep you motivated to continue while also reducing the temptation to spend your savings.
- Carol Glynn, founder of Conscious Finance Coaching
Places to go for free coffee
- Cherish Cafe Dubai, Dubai Investment Park, are giving away free coffees all day.
- La Terrace, Four Points by Sheraton Bur Dubai, are serving their first 50 guests one coffee and four bite-sized cakes
- Wild & The Moon will be giving away a free espresso with every purchase on International Coffee Day
- Orange Wheels welcome parents are to sit, relax and enjoy goodies at ‘Café O’ along with a free coffee
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Zayed Sustainability Prize
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
Mohammed bin Zayed Majlis
The five pillars of Islam
Killing of Qassem Suleimani
The years Ramadan fell in May
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Henrik Stenson's finishes at Abu Dhabi HSBC Championship:
2006 - 2
2007 - 8
2008 - 2
2009 - MC
2010 - 21
2011 - 42
2012 - MC
2013 - 23
2014 - MC
2015 - MC
2016 - 3
2017 - 8
Things Heard & Seen
Directed by: Shari Springer Berman, Robert Pulcini
Starring: Amanda Seyfried, James Norton
2/5
Zayed Sustainability Prize
UAE currency: the story behind the money in your pockets
Read more about the coronavirus
COMPANY%20PROFILE
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The five pillars of Islam
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
KILLING OF QASSEM SULEIMANI
Mohammed bin Zayed Majlis
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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Favourite things
Luxury: Enjoys window shopping for high-end bags and jewellery
Discount: She works in luxury retail, but is careful about spending, waits for sales, festivals and only buys on discount
University: The only person in her family to go to college, Jiang secured a bachelor’s degree in business management in China
Masters: Studying part-time for a master’s degree in international business marketing in Dubai
Vacation: Heads back home to see family in China
Community work: Member of the Chinese Business Women’s Association of the UAE to encourage other women entrepreneurs
