Today, the UAE is one of the most recommended countries for professionals, and many foreigners continue to make the decision of moving to the UAE for jobs and better opportunities. In addition, we are seeing an increase in private-sector workers in 2022. As a result, there is an ongoing discussion about how this situation affects the local economy.
In this article, you will find out all you need to know about this increase in the working population in the private sector. Discover with us the positive aspects and consequences of this increase, and more.
- An increase in the working population
- Why has it been an increase in private-sector workers?
- What has been making the UAE attractive to foreigners?
- How does the increase in private-sector workers impact businesses?
- Why does the new UAE Labour Law influence UAE jobs?
- What are the consequences of this increase in workers?
- With The Talent Point, you can easily navigate UAE jobs
1. An increase in the working population
With the continuous growth of the economy in the UAE, and after the COVID-19 pandemic, the country is seeing many changes. One of them is the increase in the number of people working in the private sector in the UAE. This is happening rapidly, thanks to the favorable economic policies recently implemented in the country.
We can see this strong growth reflected in the fact that the number of private-sector workers grew by 8.5% this year. Additionally, high-level jobs increased by 7.6%. It is important to note that these numbers only reflect the beginning of this year. Therefore, it may change in the near future.
There are no official figures for this year, but the total number of inhabitants is estimated at 9.8 to 10.8 million. Dubai crossed the 3.5 million mark for the first time. This is a considerable increase considering the recent pandemic that hit the world in 2020.
It can be attributed to the many foreigners who arrived during this worldwide crisis. Also, it shows the great management that the government sustained during this critical situation that affected all countries’ economies. Many investors chose to settle in the UAE during this time due to the great opportunities available.
2. Why has it been an increase in private-sector workers?
The UAE has many attractive aspects for foreigners who consider settling in the country. However, it was not until after the COVID-19 pandemic that there was a significant increase in the working population. As a result, many experts conclude that this is one of the many effects of the recent global health crisis.
The first reason for this conclusion is the decrease in job opportunities worldwide. When the pandemic started and governments imposed lockdown measures, many companies had to close. This led to thousands of workers being unemployed. This same situation was seen in almost every corner of the globe.
We could witness how many of these workers found new creative solutions to their financial situation. While some opted for starting their own business, other professionals chose to move to a place that could offer them better opportunities. In this way, many realized that the UAE was an excellent destination.
The UAE offers many attractions for both professionals and entrepreneurs. In addition, unlike many nations, the UAE was not as negatively impacted by the pandemic. This makes it much more attractive to foreigners from all over the world, as it creates motivation, offering a broad range of job opportunities, overall safety, and health security.
3. What has been making the UAE attractive to foreigners?
As we mentioned, the UAE has seen steady growth for many years. This includes all sectors of the economy, along with the medical, industrial, and infrastructural sectors. This translates into a highly attractive destination for those seeking a better quality of life. Despite the fact that the world’s economical landscape was not looking good during the last two years, the country managed to sustain its continuous development.
We can attribute this success to the many policies the government implemented to boost the nation’s economy. This support to all industries, and the recognition of the value of foreigners to the country is the base of said success.
Let us look at some aspects of why the United Arab Emirates is an attractive destination to those looking for a better place to live:
3.1 Technology
While many people may not know it, Dubai is now known as “futuristic Dubai”. This is because -at least Dubai city- is almost entirely technology-driven both at the domestic and business level. For those looking for career opportunities in the development of new technologies, the UAE is the place to go. Also, many medical centers in the UAE have access to cutting-edge technology to diagnose and treat patients.
3.2 Infrastructure
If you are an architect or civil engineer, there is a sea of career opportunities for you in the UAE. Given the continuous development of the infrastructure sector, you will enjoy great job security. In addition, if you are interested in the real estate sector or finding the right place to establish your enterprise, there will always be an option for you in the Emirates.
3.3 Low unemployment rate
In a utopian country, the unemployment rate would be 0%. Meanwhile, in the UAE, the unemployment rate is 3.5% as of 2021. With a market of endless job opportunities, it makes sense why the UAE is constantly looking for more human talent to cover positions in all fields. It does not matter if you specialize in the educational or construction sector, you will always have access to jobs in the UAE. This leads us to the next point.
3.4 Job opportunities
One of the most striking things about this country is that, as long as you are a professional, you will enjoy access to an extensive market for UAE jobs. Many diverse companies are actively searching for new employees. This is great news for private-sector workers.
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3.5 Ease of getting permits
If you want to set up a business in the UAE, you must first obtain a license and several permits. Even if you are an employee in a company, you need to obtain certain documents as well. Now, these processes are normally easy to carry out in this country. Further, there are many agencies that can complete these tasks on your behalf.
3.6 Variety of visas
The fact that the UAE has so many visa designations is highly beneficial for those looking to visit or move to this nation. For example, with the freelancer visa, self-employed workers from around the world can now live in the Emirates. On the other hand, international companies can opt to relocate their foreign private-sector workers, offering them the chance to live in the country, and more.
3.7 Employment benefits
Finally, one of the most attractive things for people working in the UAE is the benefits they can receive. This englobes all career paths, from healthcare to sales. Thanks to the recent changes to the UAE Labour Law, public and private sector workers are entitled to a range of benefits such as end-of-service, maternity, sick leave, holidays, and more.
4. How does the increase in workers affect businesses?
It is important to note that a substantial increase in the number of private-sector workers has a great impact on companies. In addition, it reflects the country’s economy. By having more capacity to hire new employees, companies continue to attract new applicants and become a solid source of job opportunities.
Thanks to this strong growth, the number of registered companies increased by 5% this year. This is also due to the many investors who decided to bet on the UAE and its great development. Keep in mind that these numbers continue to increase thanks to the new UAE Labour Law, which seeks to provide public and private sector workers with more security and stability.
On the other hand, the positive impact of this economic growth has translated into better salaries. The average salary in the private sector for people in high-level positions increased by 40%. This could not have happened without the hard work of immigrants and their great contribution to UAE jobs.
5. Why does the new UAE Labour Law influence UAE jobs?
Recently, the UAE Labour Law went through several reforms to look after workers’ rights in a more effective way. Having protection from the law as a foreign private-sector worker is a necessity, and translates into security. The government is aware of this, and for this reason, it implemented these new laws and made key changes to existing ones.
What characterizes this new Labour Law are two things in particular. These are flexibility and work-life balance. They also help to make employee-employer relationships a lot healthier. On the other hand, it adds more opportunities for those foreigners looking for UAE jobs.
As we briefly mentioned already, the new considerations include pregnant women, mothers, and mothers of children with concerning health conditions, people dealing with the death of a loved one, and work holidays, among others.
6. What are the consequences of this increase in workers?
These are some of the most important consequences that come as a result of the increase in private-sector workers and how it will affect UAE jobs.
6.1 Increase in businesses
Because the increase of workers impacted the local economy positively, it is natural that this translates into more companies opening. The UAE’s prosperity is unmatched, and if we consider the country’s ease of doing business, it is reasonable to see more enterprises.
6.2 Stronger economy
Because of the COVID-19 pandemic, the global economy saw a recession. However, the UAE remained stable and even improved in many areas. This is due to the fact that there are new companies adding to the economy and creating new UAE jobs. As we continue to witness this development, the Emirates will keep being a top ex-pat destination.
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6.3 Improvement in labor laws
As there is an increase in the working population, the government has started to implement changes to the Employment Law. While bringing in more talent and quality professionals is the goal, they must show immigrants that they will be in a country that respects their rights.
7. With The Talent Point, you can easily navigate UAE jobs
Many people around the world are choosing the UAE to live and develop professionally. As the government continues to implement policies that are beneficial to public and private sector workers, this increase will only become bigger. Moreover, we can conclude that this new reality is beneficial to the entire economy and the working class.
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Whether you are a candidate or an employer, we bring you both together. Our platform aims to create connections between workers and recruiters and make their lives easier.
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