Influx of job seekers and more freelancers expected

The new visa regulations are expected to create a flood of job seekers in the UAE market next year.

these changes, which Effective Mondaywill lead to more businesses offering freelance, project-based employment and part-time roles, recruiters say.

Talib Hashim, managing director of Dubai-based talent and business consultancy TBH Consulting, predicts that competition for jobs will be fierce in a market where the number of candidates far outstrips available positions.

“These changes have been discussed for years and will add more flexibility and mobility for expat talent,” he said on ARN’s Business Breakfast radio show.

“In order to build a more knowledge-based economy, a mechanism to attract skilled workers is long overdue, and the pandemic has accelerated the need to achieve this.

“This should lead to a hiring boom and bring more competition in the job market as local talent will have to compete with international talent entering the job market here.”

Under the old system, the vast majority of expats worked for a company that sponsored their residence visas and provided health insurance.

While this will continue, expect more companies to offer freelance and project-based jobs to reduce costs such as health insurance and tuition subsidies.

Earlier this year, Research from the employment portal Bayt.com It was found that 87% of freelancers say their services have increased since the pandemic began, while 70% of firms in the Middle East plan to hire more on a project-by-project basis.

Freelancer visa fees

Competition among those already living here is expected to intensify as these changes attract more overseas talent to apply for jobs in the UAE.

Affordable freelance visas and a requirement for office space (which used to be a requirement) have made the self-employed option a cheaper and easier process for flexible work.

A one-year freelance license costs AED 7,500, plus a business card fee of AED 2,000.

A freelance visa in Dubai is valid for three years and costs AED 4,960 for a total cost of around AED 14,460, which includes medical treatment, visa stamping and Emirates ID.

While setup costs are low, freelancers cannot sponsor employees and are limited to one of Dubai’s 35 registered free zones.

In addition, the five-year and ten-year residency programs are designed to attract more skilled professionals and those with medical and scientific backgrounds and highly sought-after skills.

At the same time, wealthy investors, entrepreneurs, and company owners are also being sought out, hoping they can put down roots, invest in real estate, and make this country their long-term home.

tough job market

“One of the biggest concerns for young people is what they will do after university due to a lack of options, which will give them the time and flexibility to find a career that suits them,” Mr Hashim said.

“The Emirati community is concerned that the job market has taken a hit in recent years.

“Increased competition means that the UAE community will have to compete not only with local talent already here, but also with an influx of new international talent.

“Because of this, we’re seeing a difference in the dialogue between policymakers and the community,” he said.

“Initiatives are being rolled out to bring Emiratis to the job market, but this will pose challenges for Emiratis and long-term residents.

“They have to figure out how to differentiate their skills from competition from overseas.

“We need to look at demonstrating employers’ need for local knowledge.

“There’s a need to understand local culture and networks, and locals are the best take advantage, so there’s a great opportunity here.”

Project-based work and freelancing

Green visas for skilled workers, freelancers and the self-employed will also grant five-year residency, as long as certain criteria are met.

Applicants are required to earn a monthly salary of Dh15,000 and have a bachelor’s degree in certain technical fields, including science, law, education, culture or social sciences.

This option also appeals to those with a two- or three-year trade license to work as a freelancer, but new applicants must be aware of potential pitfalls.

Rebecca Kelly, a litigation and regulatory partner at Morgan Lewis & Bockius, told the same ARN that this shows that new rules allowing residents to sponsor themselves and their families have significantly changed the job market.

“The visa regulator has been around since 1973 without any major changes, so these are long overdue,” she said.

“These changes reflect the trend towards more hybrid and remote work, but also allow companies to consider alternative work patterns for people.

“We now have part-time jobs and these changes reflect that.

“You’re still obligated to meet certain criteria, such as being able to afford a certain lifestyle and earning a minimum wage through your company.

“The fundamental problem is that any rights of the previous employer will be borne by you as self-employed.

“This can be done around repatriation costs, health insurance and furloughs.

“You no longer have an employer to keep records to make sure these things are being met.”

Updated: October 3, 2022 at 2:46 pm