UAE new visa rules: influx of jobseekers and more freelance roles predicted

More companies will look to hand out project work, while competition for jobs will grow, recruiters say New visa rules are predicted to crea...

More companies will look to hand out project work, while competition for jobs will grow, recruiters say

New visa rules are predicted to create a flood of jobseekers in the UAE market in the next year.

The changes, which came into effect on Monday, will lead more businesses to offer freelance work, project-based employment and part time roles, recruiters said.

Talib Hashim, managing director of TBH advisory, a Dubai-based talent and business advisory firm, predicted high competition for jobs in a market where candidates far outnumber available roles.

This should lead to a boom for recruitment and also bring more competition in the job markets. Local talent will have to compete with international talent

Talib Hashim, TBH advisory

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

“In order to have a more knowledge based economy there needed to be a mechanism to attract the skilled worker, this move was overdue and the pandemic accelerated the need for this to happen.

This should lead to a boom for recruitment and also bring more competition in the jobs markets, as local talent will have to compete with international talent tapping into the job market here."

Under the old system, the vast majority of expats worked for a single company who sponsored their residency visa and provided their medical insurance.

While that will continue, more companies are expected to offer freelance and project based work to keep costs such as medical insurance and school fee subsidies down.

Earlier this year, research by jobs portal Bayt.com found that 87 per cent of freelancers said there was an increase in their services since the start of the pandemic, while 70 per cent of firms in the Middle East region planned to hire more on a project-by-project basis.

Freelance visa costs

As the changes attract more talent from overseas to apply for jobs in the UAE, competition is expected to increase among those already living here.

Affordable freelance visas and no requirements for office space, which was once a requirement, have made the self-employed option a cheaper and easier process for flexible working.

A one-year freelance permit costs Dh7,500, with additional costs of Dh2,000 for an establishment card.