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Remote Working Visas In Dubai

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Dubai first announced the initiative of issuing Remote Working Visas in October 2020 allowing entrepreneurs and employees who meet certain requirements to live and work in the emirate for at least a year and to enjoy the benefits of a UAE resident such as housing, banking, telecoms, education, and healthcare – to name a few. 

With the United Arab Emirates being ranked the second most resilient nation in Covid19 response in global rankings, digital nomads, freelancers, & entrepreneurs have relocated to the UAE to not only enjoy the safe & quality living conditions but to also take advantage of its attractive business environment. 

Not surprisingly, the combined effect of the pandemic and lower oil prices has resulted in a decrease in Dubai’s cost of living in 2021. Dubai ranked #23 in Mercer’s 26th annual Cost of Living Survey for 2020 (dropping two places from last year’s ranking), making living in Dubai more affordable than ever. 

Dubai’s initiative coincides with the global shift in working patterns as more and more companies are slowly shifting to a remote working arrangement post-Covid. Furthermore, it allows expats to come and live in Dubai without the risk of leaving their secure jobs abroad. 

 

What are the Requirements for the Dubai Remote Working Visa?

  1. Physical Presence in the UAE at the time of application
  2. Passport with a minimum of 6 months validity
  3. For Entrepreneurs/Business Owners: 
  • Proof of Company ownership abroad for a minimum of one year;
  • Average net monthly income of US$5,000 per month and at least three (3) months bank statements to illustrate this.
  1. For Employees:
  • A proof of employment from a current employer with a contract of at least one year validity;
  • A minimum of US$5,000 per month net salary and the last three months bank statements to illustrate this.
  1. A valid Health insurance with UAE coverage

 

What are the timelines for the Dubai Remote Working Visa? 

  • Entry Permit– Approx. 5 business days
  • Visa Status Change – 2 business days
  • Medical & Emirates ID – 2 business days
  • Residence Visa Processing – 5 business days 

 

What are the approximate costs for the Dubai Remote Working Visa?

Government Fees – AED 2,300/USD 620

Processing Fees – AED 1,200/USD 330

Total Fees – AED 3,500/USD 950

Dubai is a top contender for best cities to live in for expats with its quality, multicultural, and laid back yet affordable living conditions. Dubai’s initiative reinforces its competitiveness as a global destination by providing a wide variety of investment opportunities and diversity of lifestyle choices for expatriates – both residents and visitors over the coming years. 

Thinking of moving to Dubai? Our EZONE team can assist you with obtaining your Dubai Remote Working Visa, along with the visas of your dependents if required. Contact us for more information on how we can support your move to the UAE.

Business Incubators in the UAE What are they and are they right for you

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The entrepreneurial spirit is extremely vibrant in the UAE with Small to medium sized businesses, within Dubai these companies contribute a total of 46% towards Dubai’s gross domestic product. With figures like these, it would be in the government’s best interest to foster a constructive environment for companies to Incorporate, test, scale and succeed.

Therefore the concept of the business incubators were launched, but what exactly are they? And more importantly how do they benefit your business? Through mentorship a business incubator can guide entrepreneurs from the early stages of product development, through to the accelerator programmes supporting the start up and establishing stages. The incubators provide entrepreneurs with access to networking opportunities, investor introductions, research and development and much more.

However as an entrepreneur you will need to know which incubator best suits your business idea and goals, the incubators are not a one stop shop and instead focus on specific sectors, below is a breakdown of some of the top Incubators across the UAE.

 Dubai Internet City – In5

In5 was launched by the TECOM group, focusing on Design, Technology and Media. Providing startups with five key frameworks, training, networking, investment opportunities research and development and mentorship.

The In5 application process is straightforward and involves you as the entrepreneur pitching your company to the In5 committee. In5 provides amazing support, helping entrepreneurs design their pitch and business plan to ensure it is aligned with the In5 requirements.

The In5 license is provided at a subsidised pricing, embodying the true support structure of an incubator. In5 state that it is their mandate to help inventive companies grow locally. Following the framework that In5 has in place assists companies through their lifecycle to make a substantial difference globally.

Duration:  

In5 provides subsidised pricing for these 3 years. After which, a full license fee of AED.15,000 is applicable after three years

Visa Allocation:

A start-up team of over 4 members. Visa validity is 3 years.

Pricing:

Dubai Multi Commodities Center – Astro Labs

Astro Labs defines themselves as a capability building company. AstroLabs offers support to entrepreneurs and individuals across several walks of life. Astro Labs also provides the opportunity for companies to expand into The Kingdom of Saudi Arabia.

Astro Labs offers much more than just licensing. Astro Labs Academy, offering courses related to digital marketing, coding, analytics and UX design. Astro Labs corporate training, providing companies a full scope of support, company structuring and management alongside its growth, talent services, Incubator and accelerator programs and finally linking to a network of highly skilled Technology companies to help you overcome any issues you may face. Finally AstroLabs has strategic partnerships with UAE universities, providing courses and mentorship for talented students, seamlessly providing companies with promising upcoming talent.

Astro Labs provides a 360 Incubator approach, teaching training and providing a network of limitless opportunities.

Pricing:

Similar to In5, AstroLabs understands that cash flow management can be tough as a start up, offering amazing pricing.

Obtain your DMCC license and Astro labs membership starting at 2,500 AED per month, allowing entrepreneurs to have access to 2 visas and access to Astro Labs co working space.

 

Abu Dhabi Global Markets – Hub 71

Hub 71 is a technology incubator based in Abu Dhabi, Hub 71 has several important strategic partners, such as Mubadala and SoftBank, to name a few. 

Similar to all incubators in the UAE, Hub 71 focuses on a specific sector, technology. Providing mentorship and potential Investment opportunities. Hub 71 states that they create a symbiotic environment between startups, corporates, governments and investors.

Due to the popularity of Hub 71, applications have to be submitted within a specific timeframe, once this timeframe closes, all applicants will have to wait until the next cohort to apply. 

Hub71 companies are often successful and we have seen in a few cases Hub71 companies being the first companies in the region to acquire specific approvals or licenses. A few Hub 71 companies that are prominent Include Bayzat, Bitoasis, and Denarii Cash.

Pricing & Duration:

Hub 71 is slightly different and the pricing is relative to your company’s stage.

Seed stage: the annual license cost is 700 USD and lasts 12 months and can be renewed annually at the same price for two years. 

Emergent stage this license is also valid for 12 months, however the fee is 4,000 USD, if after the 12 months, the company still meets the emergent criteria the license can be renewed for a maximum of 2 years at the same price.

Mature stage, this license cost is 10,000 USD and is applicable following the emergent stage.

Visa Allocation: 

At the discretion of the authorities and depends on the business model. 

 

Dubai International Financial Center – Innovation Hub

The DIFC Innovation Hub is an important pillar of the new Dubai Future District, located in Gate Avenue and elevates DIFC’s contribution to the UAE Innovation Strategy and Dubai Plan 2021. It is home to the largest innovation ecosystem in the region and paves the way for early stage start-ups, growth stage start-ups, unicorns and big Tech firms to accelerate success.

With DIFC’s dynamic ecosystem and its world-class regulatory and legal framework, every start-up innovator and entrepreneur will be connected to a diversified community of banks, financial institutions and service providers.

The DIFC Innovation License serves as a launch pad for relevant and cutting-edge technology, in the tech start-up and entrepreneurship sector, and enables you to tap into tech innovations across the MEASA region.

They also have the DIFC Fintech Hive Accelerator 2021 Initiative program which connects entrepreneurs with a fast track access to investors and over 17 global fintech hubs, alongside workshops and support from more than 60 ecosystem partners. Fintech Hive ensures that companies within their incubator are partnered with industry experts who can help define their solution and launch the companies successfully. 

Duration:

Three years for DIFC Innovation License

Pricing:

The license cost will be 1,500 USD per year, a flexi desk will cost 6,000 USD or 500USD/month.

Visa Allocation:

Access to 4 visas per desk.

 

Dubai Silicon Oasis – DTEC

DTEC brands itself as an integrated entrepreneurial ecosystem. With a focus on technology, they achieve just that. Not only providing the support structure all startups truly need, entrepreneurs will also have access to venture capital, and a vast global network of entrepreneurs to assist you on your journey.

DTEC corporate, connecting multi national corporations to tech startups, granting entrepreneurs an audience they may not have usually been able to.

DTEC events and learning, prior to Covid-19 and in a post Covid-19 world, DTEC will continue to host events and conferences, providing consistent networking, developing your business and business ideas around like minded entrepreneurs.

Duration:

The incubation/acceleration period lasts for three years.

Pricing:

DTEC pricing starts at 18,370AED providing entrepreneurs with a flexi desk and two visa eligibility.

Standard requirements for Incubators: 

  • Business plan
  • Company organisation chart
  • Financial projections
  • Product/service overview
  • Brief marketing plan

Joining an incubator can provide your business with a powerful start. However, it is very essential that your business idea be in line with the incubator’s mandate. As a startup, you will have to apply to the screening process and be accepted into the program. 

The benefits of being part of an incubator program can be endless, with the biggest one giving you access to all the benefits of subsidized pricing, mentorship, and even access to capital/fund raising. More than that, you will be a part of a community of like minded individuals that you can exchange ideas and network with to further your startup and achieve your business goals. 

If you believe your future business could benefit from an ecosystem like this, please do not hesitate to get in touch with EZONE – because Your Business Matters.

Contact one of our Business Setup Consultants now at setup@e.zone to know more

Warehousing Options in UAE Free Zones

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A report released by Dubai Chamber revealed how the UAE logistics and warehousing sector played and will continue to play a significant role in global efforts to overcome the Covid-19 pandemic. The country’s well established air cargo routes, excellent maritime freight connectivity, and a mature warehousing and logistics network are key to supporting global communities’ weather and push back despite the wave of restrictions put in place because of the prevalent health scenario.

While warehousing in the UAE saw steady growth, especially with the excellent work being done by the nation’s free zone bodies, in terms of logistics, the courier, express and parcel market saw exponential growth in the period as well, thanks to technological advancements, more automation within the sector and increasing mobile penetration. These factors, including a spurt in new trends resulting from the aforementioned pointers, are only expected to bolster, support and help the sector expand.

For a brief look into the various jurisdictions that offer a wide range of Storage & Warehousing solutions, please see below for both Size availability & Pricing:

WAREHOUSES

PRICING

Business Guide: 6 Reasons Why Dubai Is Perfect for Startups

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Out of the 198 global economies, the United Arab Emirates and its leading city of Dubai ranks 11th in Ease of Doing business and 25th in Simplicity of Starting a Business. Out of all of the companies in Dubai, 94 percent are Small and Medium Enterprises (SMEs).

If you are looking for a place for your startup, Dubai can offer everything you need. But what makes it a place ripe for new businesses?

Let us look a bit closer in our business guide at what this vibrant city can offer.

1. Business Guide: Secure Environment 

A business startup in the UAE can take advantage of Dubai’s excellent banking system. This system allows expatriates to open a business account and not have to worry about security concerns. In the yearly list of the world’s safest banks, 12 of them are based either in Dubai or Abu Dhabi.

Apart from banking safety, Dubai ranks high in the Global Safety Index. The city is also considered to be the most politically stable city in the Gulf, allowing you to start your business without worrying about political shifts.

2. Economic Conditions

After Abu Dhabi, Dubai is the second wealthiest city in the UAE. Political stability makes that possible, as well as the city’s welcoming of expatriates and new businesses. The Dubai Stock Market is also strong, which encourages trust from other cities in the area.

Since Dubai has an open economy, which means it allows trade with other countries, you can expect a highly diversified economy. Dubai makes it possible for companies, even small businesses and startups, to penetrate international markets and maintain stable trade relations.

In recent years, the oil and gas industry has rebounded in the area, which has allowed the government more reserves for spending and it is doing so by investing in diversified industries. The United Arab Emirates Dirham (AED) is also among the most stable currencies in the world. The stability of the AED allows business startups to begin on a firm foundation.

3. Free Zones

Dubai has up to 46 different free zones. Setting up a business in a free zone means you can enjoy zero percent corporate tax, exemption from import and export tax, and zero percent income tax. Free-zone companies also benefit from flexible ownership and ease of incorporation.

Dubai was the first emirate in the UAE to establish a free zone authority. Each free zone has its own infrastructure and they offer different benefits across varying industries.

4. Simple Visa Process

Getting a visa for starting a business in Dubai is easier than in other countries. Once you start your business in Dubai, you can apply for a residency visa and you will be able to live freely in the country. The visa process does not only apply to the business owner but to their families and employees as well.

The residency can last from two to three years and it is simple to renew. Buying or renting of residential and commercial properties are also more straight-forward than in other countries.

In fact, there is a new law that can make it possible for retired foreigners to get extended residency visas. This 5-year visa is attractive for older entrepreneurs as well as people wanting to focus on their startup and not on immigration concerns.

Expatriates can now also get 100 percent ownership of their mainland businesses. That was not the case in the past when up to 51 percent of a business had to be owned by a UAEnational. This comes as a component of a new golden visa initiative for international investors and talent.

This new system offers a 10-year visa, allowing you to make long-term plans for yourself and your business.

5. Infrastructure and Logistics

Dubai is a global hub for cargo and other transport. The city’s location makes it an excellent choice for international trading, import/export, and logistics. Dubai serves as the link to the markets of over 2 billion people in Africa, Asia, and the Middle East.

The city has more than 120 shipping lines. There are more than 85 airlines that fly from Dubai to 130 destinations across the world. Dubai has zero trade barriers and some of the largest airports and seaports in the world.

With these kinds of services, you can expect to move shipments by air or sea easily and without delays. For startups, that can be the difference between succeeding and failing.

6. Comfortable Lifestyle

In a city like Dubai, where 80 percent of the population are expats, you can expect English to be spoken everywhere. That makes communicating in banks and dealing with other business concerns much easier.

The living standards are very comfortable in the UAE and in Dubai in particular. According to the UN, the United Arab Emirates rates 14th in the list of happiest nations.

How EZONE Can Help

EZONE can advise and support entrepreneurs start their businesses in Dubai. We are dedicated to guiding you from the planning stages to the final stages of setting up your business.

Our team believe in teamwork, so we work together to ensure you achieve the results you want. You will be guaranteed of our expertise on your side and we will offer the honest and authentic help you need.

 At EZONE, we are a result-driven team. If we promise something, we will deliver it. Each of our team members value empathy and can put themselves in your shoes, making your problems our problems so that we can find the solutions your startup needs.

Start Your Business in Dubai

If you have dreamed of a startup business, now is the time to turn to Dubai to make it a reality. At EZONE, we can be the business guide and support you need to begin this journey.

Book your FREE consultation today!

Business Setup is NOT Just a Product, It is an Experience

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Welcome to the EZONE Experience
Reimagine your business journey with us. Welcome to the EZONE experience, where every client is given our utmost attention and every work is done with great precision.

Starting a business can be a tedious process. It takes a lot of time and effort. Whether you are in Dubai or any other country, the whole process can be demanding. With the updates made to the UAE’s laws and regulations, the incorporation procedures are much simpler and more organized but the right direction and guiding support are always needed to know and understand how and where to start.

Multiple ways are established in the UAE to start a company. With all the available jurisdictions available to register licenses, the guidance received from experienced business setup specialists is invaluable. Though exploring the business setup procedures in the UAE can be a complicated process – but it need not be. From comprehending the corporate structure, choosing the right license and business activity to the business formation itself, down to the residency visas and corporate bank account opening, each aspect requires careful consideration.

With unbiased attention, transparent solutions, and strategic expertise, our EZONE business setup specialists understand your unique requirements.  We save your time by customizing business setup services and designing personalized experiences so navigating among the 40 free zones and mainland entities becomes easier. We ensure that every client’s business journey is smooth and filled with comfort.

At EZONE, we provide you the value-added service with an exceptional experience. Our low-cost, effective method and pricing solutions are especially tailor-made for you. You get great value from our services without worrying about transparency in process. What we promise is what we deliver. We connect with you and listen to your every need. We share your vision and make it a reality. We value you and your ambitions. We guide you in every step you take. We are there for you.

With a little help from you, you will be assured that everything will be taken care of. You can sit back, relax and allow our team to do the rest. We will communicate with all the authorities and departments for you.  We will manage your licensing process and your visa applications. We will protect you from any unwarranted delays and rejections. We will update you every step of the way. There are no waits, pauses, or setbacks with us. 

The safety, security, and successful formation of your business is EZONE’s priority. You can focus on your goals and start your business at none other than the United Arab Emirates where you can achieve all your dreams. We will pave the way for you to get what you want. Our cost-effective, customer-oriented, and value-added approaches are created for you. By partnering up with us, your business journey becomes a seamless and stress-free experience.

Our experts ensure that you reach your destination on time. This is the EZONE experience where we put you above everything else. Our carefully crafted customer-centric proposals and specially curated business service solutions set us apart from the rest as we give significance to your well-being. You are important to us. Together, we can make it happen. 

Be a part of the EZONE experience where you and your business matter.

Why setting up a company is also a learning experience for business advisors

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Group og men and woman sitting around the table

Oftentimes, the allure of having one’s own business can be so tempting, would-be entrepreneurs tend to overlook the unheralded yet vital aspects of setting it up – and this leaves them open to unsolicited advice, derailing what is supposed to be a streamlined process to realize their goals.

As such, it becomes commonplace to see these persons lean on hearsay, word of mouth, instincts or a hastily-made internet search, which will most likely lead to failure even before anything has started.

“It’s one thing to be knowledgeable on the ins and outs of setting up a business, but we should not stop there because it is an entirely different thing to go out of your way and continue learning,” says Mariben Tan Eustaquio, managing director of EZONE, a Dubai-based company that provides business setup advice.

“Even the most seasoned business people with acclaimed acumen had to learn at several points in their careers, which makes them no different from all of us who aspire to be one.”

Professional business advisors shouldn’t be seen as an extra expenditure or step; rather, it should be viewed as part of the investment, a vital gear of the machine that would eventually run a company.

And there could probably be no better time to strike business opportunities in than in today’s modern world, where all the necessary tools – from human capital to funding and, of course, technology – are within arm’s reach to help one start off.

Also, with the pandemic’s effects starting to wear off and new, innovative ideas coming to the fore, the opportunities are endless, evidenced by the rise of startups and small and medium enterprises (SMEs).

“Always start with what you can or have, and don’t overdo things at the beginning. Taking risks is okay, but make sure you calculate these risks and know what you’re doing,” Eustaquio says.

According to the UAE Ministry of Economy, SMEs – popularly described as the “backbone of an economy” – represent over 94 per cent of the total number of companies operating in the nation, accounting for around 86 per cent of the private sector workforce.

In Dubai alone, SMEs comprise almost 95 per cent of all companies, employing 42 per cent of the workforce and contributing about 40 per cent to the emirate’s gross domestic product.

All companies, big and small, had to start somewhere, and the road may not be easy. Eustaquio, a seasoned executive and business advisor, says it is equally challenging to tailor advise to potential business persons, given not everyone is made from the same fabric, varying in the knowledge and background needed to start off.

However, this is what fuels her and EZONE.

“It’s true that our clients differ and they seek varying degrees of advice, and there are even times when we run across an entirely new situation,” Eustaquio says.

She acknowledges that, just like starting a business, what they are doing is never easy, but she always reminds to never let pressure get the better of you and think with a clear head.

“But that’s the beauty of what we do – as we adapt and do the homework for them, eventually presenting the best options we can find, it’s the manner in which we collaborate that sows the seeds for a potentially successful venture, and we are happy to be a part of their journey.”

Of course, dealing with clients is also a learning opportunity for Eustaquio and her team, whom she always reminds to never stop seeking new avenues for growth, just as she champions to EZONE’s clients.

 “I also view this as an opportunity to learn; interacting with different types of people also opens up new experiences and knowledge for us. It’s a give-and-take relationship, between our clients, myself and all of us at EZONE,” she adds.

EZONE provides advice for setting up businesses on an entrepreneurial level by understanding the unique needs of its clients with personalized, unbiased and cost-effective solutions to incorporate their businesses in the UAE.

With almost a decade of industry know-how and first-hand experience, EZONE has emerged as one of the go-to firms when it comes to business setup solutions, allowing its clients to grow and scale their ventures in a hassle-free manner and free from incorrect or misleading business advice. And, of course, all at very competitive and affordable rates.

EXPO 2020 AND BEYOND: FROM DISTRICT 2020 TO URBAN 2040

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Expo 2020 Entrance gate

It’s bigger than Disneyland Resort in California, and reaches far beyond the Forbidden City in Beijing, China. It’s even larger than the Principality of Monaco, which is a sovereign state on its own. The 1,083 acres, 483 hectares, 4.38 kilometers mega-sized grand development – is how massive Dubai EXPO 2020 is.

The infrastructure, architecture, lights, pavilions, stages, garden, food halls, and everything in it is truly astounding and awe-inspiring.  

Being home to unique pavilions from 192 countries for  6 months, Expo 2020 was the greatest melting pot of cultures where the world united and celebrated differences, similarities, and accomplishments under one gigantic roof. 

The record-breaking global affair ended with more than 24 million visitors from all over the world including the residents of the UAE. This was an achievement, an unforgettable legacy, for the UAE as it fulfilled its promise of giving the world a spectacular event that will be remembered for a lifetime. 

Now that grand EXPO 2020 has ended in Dubai, the site will be redeveloped into District 2020 which will host numerous cultural, commercial, and residential neighborhoods. 

As of today, more than 600 startups, from the 3,000 registrations, and SMEs across distinct continents are eyeing to be the first residents of District 2020 which will open its gates in October 2022

 District 2020 is a legacy city. It is a “city within a city” that is sustainable, traffic-free, and environmentally friendly. Being a metropolitan hub, more than 145,000 residents and their organizations with up-and-coming businesses can establish their base there. Multinational corporations are also investing in the “District 2020 Entrepreneur Program” which is an admirable action by the leaders of the UAE.

Siemens, being “the Official Infrastructure Digitalization Partner for the Expo 2020”, helped Dubai “achieve its goal” by efficiently providing an “optimal balance of energy with visitor safety, security, and comfort.” 

With more than 130 buildings connected by Siemens to the Internet of Things (IoT) technology, Expo 2020 in Dubai became the “most digitally connected World Expo in the event’s 167-year history.”

With its global presence, the German giant – Siemens, decided to set up its operations and sign a 10-year lease agreement in District 2020. More than 1,000 employees are estimated to be at work, bringing in more revenues and jobs for the people of the UAE. 

As the Chief Executive Officer of Siemens, in the UAE and the Middle East, Dietmar Siersdorfer has stated that they are committed to “investing in the future of Dubai and the region beyond 2020.”

Siemens establishing one of its foundations in Dubai will prove to be beneficial not only for the company but also for other businesses due to the centrality of location. Since UAE is connected to the chief countries, with Siemens as its digital partner and District 2020 supporter, it will attract new and major enterprise players in the technological and digital sectors. 

However, District 2020 is not the end goal. It is just the beginning. Once the corporate nucleus is formed in Dubai, District 2020 will transform into the 2040 Urban Plan which is a green space that holds a variety of flexible lifestyle selections such as autonomous vehicle routes, integrated pedestrian pathways, and interlinked jogging and cycling track. 

Having a bright, green, and sustainable future ahead, numerous countries are eager to launch their business projects in the District which includes a Hydrogen Innovation Center by a company in the UK and the Archeological Artifacts Preservation Center by the Italian Government. Many more exciting ventures are in place and set to open in the near future. 

The EXPO 2020 was a spectacular event with worldwide success. District 2020, its predecessor, will be no less. It will be the entrepreneurial heart of the region which will be further developed into the Urban 2040 plan where people from the global arena can come together to bring their ideas to life.  

So, what are you waiting for? At EZONE, we help you from corporate formation to execution. Don’t wait till 2040 to start your business. The right time is NOW. 

Take advantage of this amazing opportunity and be one of the flourishing entrepreneurs who call Dubai their “ideal home.”  Call 800- EZONEUAE and establish your business in District 2020. 

Women of Today: Still Running the World

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STILL EMPOWERING 

Women empower women. To empower a woman is to let her be herself. It is to enable her to do things on her own while giving her the support that will enable her to go beyond her limits. It is inspiring her to venture into entrepreneurship or the workforce in order for her to be independent and self-sufficient. 

In the 2021 BLS Report, the percentage of women in the labor force increased from 57.1% to 57.4%. Although the change may be small, women are slowly climbing and conquering the corporate world.  

When they feel empowered, they empower other women and rise together.

STILL EVOLVING 

Women are still evolving and learning. By ensuring that they receive quality education without discrimination, they are achieving gender equality.  They are adapting to all that is new while shedding all that is old. They are paving the way for change and learning to become the change. 

The evolution is evident.  In 1975, there was a huge gap in the adult literacy rate, men being 54% and women being 32%. Now, both genders’ literacy rates are close to 95%. 

With education, they are becoming role models of the future generation. They are establishing their voice and pushing their boundaries for a better life.

STILL LOVING 

Women are always giving and loving beyond measure. They go beyond themselves to help each other. They live their passions, no matter how difficult it may be, and encourage others to live theirs. 

Although many women may find it hard to achieve work-life balance, one step a day in the right direction gets them to the place they want to be in their professional and personal life. 

As Laureen Seeger, the Executive Vice President and General Counsel of American Express has said “you can have a full life and a great career, but you can’t have it all perfectly.” As a mother of 5 children, she believes that you can love yourself, your life, and all the people in it by setting your priorities straight. The truth is that no one is perfect and the moment every woman accepts each other’s flaws, they are able to not judge and treat each other with kindness.

STILL FIGHTING

Women are still fighting for the upliftment of their rights. They are fighting against discrimination, inequality, injustice, racism, conformist mindset, outdated beliefs, inappropriate standards, etc. They are not giving up and are persistently striving towards their goals.

In reality, the World Bank Report of 2022 stated that from a legal perspective out of 195 countries only 12 countries in the world offer full legal rights protection to women. Some of these countries like France, Spain, Canada, and Portugal are inviting other nations to join their fight against women’s injustice. 

Despite few countries being part of the complete protection list, many other nations are taking part in it and supporting the equal rights of women. They are paving the way for the respect and recognition of women. With unity and trust, women are mounting all the way through to protect each other’s rights to have a secure life. 

STILL SHINING  

 Women are still shining through. According to Aminatou Sow and Ann Friedman, when women are “investing in other women, celebrating their successes and elevating “lesser-known voices” they become part of the Shine Initiative, also known as the Shine Theory, where “if you shine then I shine “kind of mindset.

When women are supporting, accepting, and respecting each other’s differences, they are amplifying one another to do better. They encourage each other to pursue their desires and are proud of each one’s achievement.

They are a force to be reckoned with.

EZONE SUPPORT  

This is the power of women supporting women. At EZONE, we celebrate every woman and thank them for still running the world. For them to start their business journey, we create ways for them to accomplish their goals and reach their destination.

From business setup services to visa processing, we promote women entrepreneurs and prepare bespoke solutions for them. To get to know more about how we can empower each other, please sign up for our FREE Consultation.

 

THE UAE LABOR LAW: PAST VS. PRESENT

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On February 2, 2022, a new Federal Labor Law came into force in the United Arab Emirates (UAE) which represents the biggest change to the UAE employment regime. The law is created to promote the rights of the employees and businesses alike, making it easier to establish employment contracts, while also offering businesses a competitive edge when it comes to attracting top-class talents from all over the world.

PAST

PRESENT

Employment Arrangements

  • Full-time employment was available. 
  • In 2019, part-time employment was introduced, and more flexible arrangements were implemented due to the 2020 Covid measures.
  • Aside from full-time and part-time, other employment arrangements were introduced:
  • Temporary
  • Flexible
  • Remote Work
  • Job Share

Work Permits

  • Expatriate employees must have an employment permit before they can legally work in the country. 
  • A two-year full-time labor card or work permit was given to employees. 
  • All individuals who work in the UAE are required to submit an employment contract to the UAE authorities at the time of work permit application.
  • 12 different kinds of work permits were created to showcase various types of sponsorship and employment arrangements that are in place and are listed below:
  1. Work permit for those recruited from outside the UAE.
  2. Work permits for expatriate employees transferred to and from the company. 
  3. Dependant permits for individuals who are sponsored for residency purposes by a dependant.
  4. Temporary work permits for those on a project basis where time is the main factor for the employment period.
  5. Task work permit for employees who are recruited from outside of the UAE to work on a temporary basis.
  6. Partial work permits for individuals employed on a part-time basis. 
  7. Juvenile work permits for individuals between the age of 15 and 18.
  8. Student training and employment permits allow employers to train or employ a student. Above 15 years are subject to specific terms and conditions. 
  9. UAE and GCC nationals’ work permits.
  10. Golden residency holders’ work permits.
  11. Training UAE nationals for scientific qualification work permits. 
  12. Self-employment permits for self-employed individuals who are not required to submit an employment contract to the labor authorities.

Contract Terms

  • There were two forms of contracts: 
  1. Unlimited term contracts – These are continued until terminated.
  2. Fixed-term contracts – These are terminated on the agreed term unless renewed by parties.
  • Only one type of contract exists now, namely the fixed-term contract.
  • Fixed term employment contracts with a maximum period of three years are existent. 
  • Upon expiry, the contract can be renewed or extended for the same or shorter periods with attention given to the employee’s service. 
  • If the contract is not renewed or extended and both parties continue to operate, then the contract is deemed as renewed and is still in effect with the same terms and conditions. 
  • For employees currently on unlimited term contracts, employers are required to convert the existing contract to a fixed-term contract within one year from the effective date of the new UAE Labor Law. The transition to fixed-term contracts must be completed by February 1, 2023. They can be terminated for legitimate reasons which are subject to the following provisions: 
  • 30 days to terminate if the employee’s period of service is less than 5 years
  • 60 days to terminate if the employee’s period of service is more than 5 years
  • 90 days to terminate if the period of service is more than 10 years.

Contract Termination

  • An employee can be terminated without notice under Articles 88 and 120.
  • Termination under Article 120 forfeits any entitlement to end-of-service gratuity.
  • Termination with notice or valid reason is related to employee performance or conduct.
  • Termination can occur via mutual agreement or expiry of the agreed term in the case of a fixed-term contract.
  • An employee under the employment contract can be terminated for legitimate reasons – a written notice should be provided 30 to 90 days prior to termination. 
  • If the employee or employer chooses not to adhere to the notice period, the party terminating the contract must pay compensation to the employee which is their salary or remaining part of it during the notice period. 
  • Upon termination of the contract by the employer, the employee is permitted to have one day of unpaid leave per week to search for a new job. 
  • Termination with notice that is not related to employee performance or conduct is permitted and includes: 
  • Downsizing, redundancy, insolvency
  • Bankruptcy, company closure
  • The work permit cannot be renewed provided that the non-renewal is not attributed to any fault on the part of the employer.
  • Abuse of position due to profit or personal gain. 
  • For employers to terminate an employee due to redundancy is restricted by the following conditions: 
  • Confirmation that the employer is bankrupt or insolvent.
  • Inability to continue the activity for economic reasons that are beyond the employer’s control.
  • Conditions, controls, and procedures related to redundancies are explicitly expressed in new executive regulations. 
  • The employee can leave the employment immediately or without notice when:
  • There is danger in the workplace or threat to safety or health – the employer was aware but did not take action to eradicate the issue.
  • The employee’s tasks are different from the work described in the employment contract.

End of Service Gratuity (ESG)

  • When an employee resigns the amount of ESG is calculated based on the type of contract – Limited and Unlimited contract.
  • The employee’s basic pay is based on the calendar of days and has a maximum cap of 2 years with remuneration. 
  • Instead of paying ESG, the employer can pay contributions or benefits in terms of pensions or other saving schemes. 
  • No provisions or time frames were existent regarding service entitlements.
  • For ESG, under the present law, only one type of contract exists, namely the fixed-term contract.
  • Employees with more than 1 year of service are entitled to ESG and the calculation is same as before. 
  • Regardless of the circumstance of termination, if the employee has completed 1 year of service, then they are entitled to ESG without any reduction or loss of gratuity.
  • The payment of ESG and other termination payments must be made within 14 days of the termination date. 

Service Entitlements

No provisions or time frames were existent regarding service entitlements.

  • All the service entitlements must be paid within 14 days from the termination date. 
  • If the employer failed to comply, then a fine of AED 5,000 to AED 1,000,000 is imposed – a multiplier effect depending on the number of employees will take place.

Unlawful Termination and Compensation

  • Compensation is awarded for arbitrary dismissal unrelated to the work of the employee by the courts. 
  • There are many reasons not attributable to the employee’s poor performance or conduct.
  • The concept of arbitrary dismissal has been removed. 
  • The present law states the unlawful termination of employees which are listed below: 
  • A serious complaint is filed by the employee against the employer. 
  • A case is filed against the employer and is successfully upheld.
  • The labor courts can oblige the employer to pay compensation of up to 3 months of total remuneration which includes basic salary, allowances, contractual and statutory entitlements.
  • The court, when awarding compensation, will consider the amount of damage sustained by the employee which includes the length of service, and the kind of work performed

Probation Period

  • The probation period for employees is a maximum of 6 months.
  • Employment is terminated without notice and notable consequences.
  • The maximum probation period of 6 months remains.
  • A minimum of 14 days’ notice should be given to employees before termination. 
  • If the employee resigns during the probationary period, various requirements need to be fulfilled:
  • The employee is joining another employer in the UAE then a minimum of 1 months’ notice must be given to the current employer. The new employer must compensate the current employer for the recruitment cost. 
  • If the employee leaves the country (UAE), then the employee must provide 14 days’ notice to the company. However, If the employee returns to UAE within 3 months for employment, then the new employer is liable to compensate the previous employer on the recruitment cost.
  • If the employee has failed to follow the provisions under the new law, they will be subject to a labor ban for a year which takes effect when they leave the country subject to exemptions from MOHRE.

Labor Ban

If the expatriate employee leaves work without valid reason or without completing his contractual notice period, then that employee is not allowed to get another job for one year from the date of their abandonment.

  • In certain circumstances, the MOHRE may not permit specific individuals to get a work permit when the employee resigns from their employment during their probation period or for an illegal reason. 
  • In the executive regulations, the labor ban does not apply when the individual is: 
  • “Of skill, professional or knowledge levels” and required by the UAE
  • Sponsored for residency purposes by a dependent 
  • A golden visa holder
  • Part of “occupational categories” as determined by the MOHRE and approved by UAE cabinet

Discrimination and Equal Pay

  • Provisions for equal pay for men and women for the same form of work exist but regarding discrimination there is limited protection. 
  • Provisions on harassment were less. 
  • The UAE courts had a limited right for the issuance of fines. 
  • Protection against discrimination or dismissal due to employee pregnancy and maternity leave existed.
  • Protection against discrimination in workplace is specified on the grounds of: 
  • Race, color, sex, religion, national origin, social origin, and disability
  • Employees with a disability that would hinder the chances for equal opportunities or are subject to prejudice are protected under this law.
  • Employees on maternity or pregnancy are not listed as protected but employers are prohibited from terminating them.
  • Equal pay for men and women from the same work. 
  • Protection against sexual harassment, bullying, and verbal, physical, psychological, mental, and/or emotional abuse against employees. 
  • The UAE courts issued fines against employers for the breach of Labor Law. 
  • Penalties for discrimination and sexual harassment can range from AED 5,000 to AED 1,000,000 for breaching the law with a multiplier effect for the number of employees affected. Fines can be doubled by the court for the repetition of violations.

Maternity, Parental and Additional Leave

  • Maternity leave is 45 calendar days at full pay and on expiry.

The employees get further 100 days of consecutive or intermittent maternity sick leave if they are suffering from a condition related to pregnancy or delivery that prevents them from going back to work.

  • Employees who are returning to work from their maternity leave are entitled to two additional breaks per day (not going beyond 1 hour) for nursing until the child turns 18 months of age.
  • Maternity leave is increased to 60 calendar days with 45 days being paid in full. The remaining 15 days are at half pay. 
  • Even if the employee has not completed 1 year of employment, maternity pay is not reduced.
  • If the employee miscarries after 6 months, has still birth/s or there is a death of an infant, maternity leave still applies.
  • For employees who give birth to a sick or disabled child or a child with health conditions that need a “constant companion”, 30 paid calendar days are added to their maternity leave and can be extended to 30 unpaid days of leave.
  • The nursing breaks of the employee are reduced from 18 months to 6 months from the date of delivery. 
  • Maternity sick leave is reduced to 45 consecutive or intermittent days.
  • With the amendments to maternity leave, new leave categories have been presented which are: 
  • Compassionate leave:
  • 5 days of leave is granted for the death of an employee’s husband or wife. 
  • 3 days of leave are granted for the death of an employee’s mother, father, son, brother, sister, grandson, grandmother, or grandfather.
  • Parental leave:
  • 5 days of leave, for both men and women, must be used within 6 months of the child’s birth.
  • Study leave:
  • 10 days per year for an employee who has completed more than 2 years of service and is affiliated or on regular studies with an approved UAE education institution to take exams.

Salary Payments

  • Employee salaries need to be paid in UAE dirhams into a UAE bank account.
  • The Wage Protection System is required to make salary payments.
  • Employee salaries can be paid in other currencies other than UAE dirhams specified in the employment contract.
  • The Wage Protection System is required to make salary payments.

 Non-Competition Restriction

  • Restrictive agreements are permissible with no maximum length as long as they are limited in terms of time, location, and type of work. 
  • Courts are reluctant to consider restrictive periods exceeding 6 months as being reasonable unless the employer requires a longer restrictive period due to the legitimate risk in business.
  • Non-competition restrictions in an employment contract is allowed provided that the provisions are limited in time, duration, place, scope, and extent needed to secure the legitimate interests of the employer. 
  • A maximum restrictive period of two years from the termination date is introduced. 
  • If the employer terminates the employee’s contract and it is not in accordance with the law, then any restrictive agreement is automatically abolished. 
  • The Executive Regulations provide that: 
  • Non-compete confirms their nature of work, geographic scope, and duration of restrictions. 
  • Non-compete applies when the employees resign from their work unless when the employer terminates the employment due to a breach of legal and contractual obligations. 
  • Non-compete waives through mutual agreement. 
  • The employer or new employee compensates the ex-employer for up to 3 months of total salary.
  • The employer terminates the employee’s employment during the probation period. 
  • The occupational categories connected to the needs of the labor market in the UAE are determined by the Minster of the MOHRE and approved by the UAE Cabinet.

Annual Leave

Forfeiture of annual leave was not allowed, and unused leave can be automatically carried forward to the following year or paid out in lieu.

  • Employees must utilize their annual leave which is applicable every year.
  • Employees entitled to a payment in place of unused leave upon the termination of the contract are calculated based on the employee’s basic salary.

Work Regulation

The employer is obligated to place several “disciplinary rules” in particular circumstances in which certain disciplinary sanctions can be imposed on the employee.

  • The work guidelines, as per executive regulation, is applicable for companies with more than 50 employees and include certain measures such as: 
  • Work instructions include daily working hours, weekends, festive holidays, health, and safety precautions
  • Penalties are imposed on an employee who has breached the terms and conditions of their employment.
  • List of criteria and controls for promotions and rewards.
  • Procedures to be followed prior to the termination of an employee’s employment.
  • Grievance policy, disciplinary policy, and other necessary policies.

Working Hours

  • With 6 days working week, a maximum normal working hour for adults is 8 hours per day, 48 hours per week.
  • With 5 days working week, a maximum normal working hour for adults is 8 hours per day, 40 hours per week.
  • If employees work more than the required number of hours, it is treated as overtime, and they are entitled to overtime pay.
  • The employees can work for an additional of two hours of overtime per day.  
  • For over time, a different pay calculation is applied depending on the number of hours, working or non-working days, and time of the day. 
  • Overtime regulations are “carved out” for managerial and supervisory positions such as: 
  • Chairmen of boards of directors and board members 
  • General Managers
  • Managers of Departments 
  • Individuals working in supervisory posts at the institution
  • The maximum normal working hours for adults are 8 hours per day. 
  • A limit of two hours per day of overtime continues to apply. 
  • The method of calculating the type of overtime work is based on the rate of basic pay and includes: 
  • Extended working day
  • Rest day
  • As per executive regulation, certain employees are exempted from working hour and overtime provisions in the present law who are: 
  • Chairmen of the boards of directors and board members.
  • Employees with supervisory positions who represent the employer
  • The crew of naval vessels and employees who work at sea have special conditions of service due to the nature of their work.
  • Businesses whose technical nature requires employees to be engaged in shift work or be tour guides with average working hours of 56 hours per week. 
  • Preparatory or complementary works must be carried out outside the normal working day.

Disciplinary Process

  • If the employer is posing certain sanctions on the employee, a minimum disciplinary process should be followed in advance 
  • The minimum process should be carried out before disciplinary sanctions which include dismissal and other measures: 
  • the employee should be notified in writing of the charge.
  • The employee should be invited to a meeting and listened to. 
  • The employee should provide written valid reasons for any penalty to be imposed, which should also be recorded in the employee’s personnel file. 
  • All the allegations against the employee should be investigated thoroughly. 
  • When the employer becomes aware of the allegation, the employee should be informed of the allegation within 30 calendar days and a disciplinary penalty should be imposed within 60 calendar days of investigation. 
  • There was no written concept of the employee’s right to appeal the disciplinary outcome.
  • Disciplinary penalties are imposed on the nature of misconduct with the following criteria: 
  • Breach of confidentiality of data and information related to work.
  • Violation of the health and safety of the employees.
  • Disclosure of financial information that may harm the security of the company. 
  • Violation of the reputation of the employer and its employees. 
  • The exploitation of authority is entrusted to the employee.
  • Repetition of violation towards work. 
  • Existence of criminal or moral share in the committed violation.
  • The list of disciplinary penalties that can be imposed from the new law should be presented to the employer.
  • Similar to the original law, the penalties are imposed after the following process has been conducted: The employees are informed of the allegation in writing.
  • The representations have been heard.
  • Their position has been investigated.
  • The process is recorded in a written report and placed in his personnel file. 
  • The employee is notified in writing of the penalty imposed.
  • The type, amount, reason, and penalty that they may receive for violation repetition.
  • The employee’s ability to internally appeal any disciplinary penalty imposed against them is a big change in the executive regulation.
  • As per the executive regulations, the employer should not suffer any damages from the appeal and the employer should inform the employee of the outcome of the appeal.

Labor Disputes

If an employee wishes to file a formal dispute against their employer, then the employee should raise an informal complaint to the labor authority before the formal claim is filed at the Labor Court.

  • The process of filing for labor dispute remains the same as the previous law. 
  • As per the executive regulation, the employee can continue working during the labor claim; the employee can claim two months’ wages which MOHRE can compel the employer to pay the amount or refer the complaint to the court.

It is essential for all UAE companies, onshore and within free zones, except the ones in DIFC and ADGM, to review their contracts, especially new employment contracts, policies, handbooks, and procedures to ensure consistency with the current law.

We are looking forward to working with you to ensure that you completely adhere to the current law. To know more about our services, please feel free to call 800-EZONEUAE or email us at setup@e.zone.  You can also visit our website for additional information.

At EZONE, Your Business Matters.

How has Ramadan become the Economy Booster of Dubai?

//  by 

While 2020 was a very challenging year for many nations, the UAE was able to overcome the COVID 19 outbreak by creating an Emirati Experience that showcases the teamwork of the government and residents.

The main aspect of the Emirati Experience was to utilize medical knowledge with digital technology. Through their on-time COVID 19 combat plan, they were able to ease the situation and be one of the successful nations to proudly do the COVID 19-Exit.

By doing that, the government assured people of “life going back to normal” but with certain transformations. COVID 19 brought about many eye-opening, thought-converting, positive developments. The economy was going through a restructuring process in which specific religion and its practices were going through an evolution, one of them being Ramadan.

Ramadan, being one of the most auspicious months for Muslims all over the world, took a backseat during the pandemic. Being a time when friends and family come together and share their meals with each other, as a protective measure, communal prayers were limited, and large family and social gatherings were banned. Suhoor, late-night events, and large tents were suspended, food distribution was halted, and meal distribution was altered. 

To bring back the essence of the Emirati Experience, the UAE government took its transformative measures to another level by relaxing certain rules and regulations that were practiced in the past during Ramadan to make it a Universal Experience for all. Iftar tents, communal prayers, and social gatherings, which were prohibited for almost two years, were reinstated by UAE National Emergency Crisis and Disaster Management Authority. According to the regulatory bodies, “this comes in line with the national strategy to maintain public health and safety in light of the resumption of various public activities, and in support of the tireless efforts made at the country level to achieve sustainable recovery and restore normalcy.” In addition to reinstating the Ramadan practices, a number of rules and regulations were altered to boost the economy of the city and accommodate the needs of the pandemic-affected industries. 

Before, restaurants had to block their dining areas from those who were fasting. Screens, curtains, and dividers were used by restaurants to shield customers during Ramadan hours. Certain food and beverage outlets such as bars, eateries, and cafeterias remained closed until sunset when the fast is broken. Thus, people refrained from going out and eating elsewhere. 

Now, the Dubai Department of Economic Development has eased its regulations and lifted restrictions by allowing food and beverage outlets to serve throughout the day without any special permit. Licensed outlets, such as bars, lounges, and restaurants in the hotels, are allowed to operate as long as they respect the culture by having no live music and keeping entertainment to a minimum. 

Malls, pharmacies, supermarkets, take-away or delivery joints, and other forms of businesses remain open during the month of Ramadan. The relaxing of rules, which started in 2016, was fast-forwarded after the pandemic to boost the affected industries, most especially the tourism and food and beverage industry.

Previously, tourists would opt out to visit Dubai due to Ramadan as they felt that there was not much to do in the city and areas surrounding it. With the changes in the licensing arrangements, the Dubai Department of Tourism and Commerce Marketing (DTCM) stated that now it’s “business as usual” for the city. This means that Dubai can welcome a huge influx of people from all over the world during Ramadan and offer them the unique Emirati Experience.

The main aim of the government is to make the nation on par with other nations where religious holidays take place without interrupting the functions of industries that run the economy. This initiative ensures Ramadan motivates people to continue doing their work normally, like how they have been doing earlier. 

 In the words of Issam Khan, the Chief Executive of DTCM, “people are getting used to being able to come to Dubai during Ramadan and enjoy it the same way they would any other time of the year.”  In fact, with lesser restrictions, Ramadan is a great opportunity for the boom of tourism and the food and beverage industry. It makes Dubai a must-visit destination where tourists can immerse themselves in the traditional culture that is not only part of the city but of the country.

Overall, Ramadan should be good news for the economy where more people will not only enjoy the sights and sounds of the golden emirate but also invest in their distinctive industries.  This is part of the long-term strategy of the government where tourists become investors and business owners are encouraged to expand their business.

Investors, owners, and entrepreneurs who wish to capitalize on the different industries in Dubai, especially the tourism and food and beverage industry, don’t have to worry anymore. Business is as usual in the city of gold. 

So don’t think twice! Be part of the safest and one of the most advanced economies in the Middle East. Whether it’s Ramadan or any time of the month, EZONE can help you establish your business in no time. Call 800- EZONEUAE or visit our website https://e.zone/ for more info.