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Dubai, UAE: New ministerial decrees to protect foreign workers in the UAE can positively affect foreign direct investment, according to Links Group, one of the UAE's leading providers of commercial facilitation and advisory services.
The three resolutions, which come into effect in January 2016, aim to improve transparency of job terms and employment contracts, outline how contracts can be broken, and could make it easier for workers to change employers.
Commenting on the new decrees John Martin St. Valery, founding partner of Links Group said: "The new decrees are designed to protect both employer and employee rights and will likely see the labour market grow as a result. By decoupling sponsorship of foreign employees from labour relations, you start to bring transparency to the employer-employee relationship. This will help attract more migrant workers to the country, which will of course boost productivity.
"Giving employees the ability to change jobs more easily also stands to boost productivity because of higher levels of job satisfaction. Retained employees are more likely to be happy in their jobs, and therefore higher performing.
"This increased availability of labour, coupled by a more contented and productive workforce is likely to positively influence FDI location. Foreign-owned firms tend to favour locations in which they have a larger pool of talent from which they can build their workforce.
"The new UAE labour rules are a positive development, especially for attracting inward investment. Firms seeking to maximize their profits are most interested to locate to countries with more flexible labour markets, which allow firms the freedom to adjust to prevailing economic conditions."
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About The Links Group
Established in 2002, Links Group partners, protects & enables foreign companies to enter and exit the UAE and Qatar markets while protecting their status as business owners. It advises corporations and individuals on how best to structure a legal commercial presence in the Middle East that protects their ownership interests and affords clear succession planning.
The Links Group is the first company of its kind to be endorsed by the Government of Dubai through a strategic alliance with the Foreign Investment Office (FDI) of the Dubai Economic Department and provides an unrivalled portfolio of corporate services including nominee local partnerships, corporate administration and government liaison support. The Links Group difference is that foreign companies work with a highly structured board as their local partner as opposed to an unknown individual. This structure provides foreign businesses with a corporate entity to act as their nominee, local partner, shareholder or sponsor, thereby minimising the risks associated with appointing an unknown individual nominee and satisfying corporate governance requirements.
The Links Group has an untarnished track record with 300 clients, who represent combined annual revenues of over USD 5bn to their respective economies.
The Links Group is also recognised as a Dubai SME 100 company, a ranking of the top performing SMEs in the emirate, and an Arabian 500 company.
© Press Release 2015
