In brief
- The UAE has taken a proactive approach to attracting global talent, introducing initiatives such as the Golden Visa and remote working permit to support longer-term residency for investors, entrepreneurs and highly skilled professionals.
- These reforms form part of a much broader strategy to position the UAE as a global hub for business and internationally mobile talent, competing with established centres such as Singapore, Hong Kong and London.
- For multinational employers, the UAE is increasingly being used as a regional headquarters location, offering relatively easy access to other key markets.
- Immigration considerations are only one factor when considering the relocation of talent to the UAE. The employment law frameworks are also an important consideration, as are other related topics such as tax and overall workforce strategy. In all cases, early planning is key to ensuring that any strategy works long term.
- Recent geopolitical development across the region will likely prompt businesses to reassess their footprint and may impact employer decision making and overall strategy.
The global competition for talent has entered a new phase. Governments are no longer simply regulating labour markets. Instead, they are actively shaping policies designed to attract and retain entrepreneurs, investors and highly skilled professionals, with longer term retention of that talent in mind.
Few jurisdictions have embraced this shift as decisively as the UAE.
Over the past several years, the country has introduced a series of reforms aimed at transforming its traditional expatriate workforce model into something more enduring: a long-term ecosystem for global talent. For employers relocating employees to the region, this evolution presents a significant opportunity. Naturally, alongside that comes some complexity.
In particular, understanding how immigration pathways interact with the UAE’s employment framework is now a critical part of any global mobility strategy involving this jurisdiction.
A deliberate shift towards attracting global talent
Historically, residency in the UAE was closely tied to employment sponsorship. For many expatriates, the ability to live and work in the country depended entirely on maintaining a single employer relationship and on ensuring that any transition between employers was smooth and well thought out, particularly from a timing perspective.
That approach is changing.
Initiatives such as the Golden Visa, Green Visa and remote working programmes have expanded the routes through which certain individuals can establish a longer-term presence in the UAE. These initiatives are designed to attract investors, entrepreneurs and highly skilled professionals who may previously have viewed the region as a temporary assignment rather than a long-term base.
The message is clear: the UAE is seeking to position itself alongside global centres such as Singapore, London and Hong Kong as an income tax-free destination for internationally mobile, in-demand talent.
For businesses, this evolving policy landscape offers greater flexibility when designing international assignments, leadership structures and regional hubs.
Why companies are relocating talent to the UAE
The UAE’s rise as a regional business centre has accelerated significantly in recent years. Multinational organisations increasingly view Dubai and Abu Dhabi as strategic locations from which to manage operations across the wider Middle East, and further afield in Africa and South Asia.
Infrastructure, connectivity and a pro-business regulatory environment remain key drivers. However, broader geopolitical considerations have historically also played a role.
Regional tensions and conflict across parts of the Middle East have reinforced the importance of stability and predictability for international businesses. Against that backdrop, the UAE’s reputation as a comparatively secure and well-governed jurisdiction has been an important factor in relocation decisions. That reputation has also been reinforced by the fact that the UAE is not generally seen, at the employee level, as a hardship post. It has therefore been relatively easy to hire in or for, and indeed relocate employees to, the UAE.
For many organisations, establishing a presence in the UAE allows them to maintain access to regional markets while operating from a jurisdiction that offers a high degree of political and economic stability.
It remains to be seen how recent geopolitical developments will impact employers and investors who have historically viewed the UAE as a jurisdiction which is not impacted by regional issues in the same way as some of its Middle Eastern neighbours.
Immigration is only one part of the mobility picture
Relocation discussions often begin with visas and immigration pathways. While these are clearly important, they represent only part of the broader legal framework governing international mobility.
Once an employee begins working in the UAE, the employment relationship will typically fall within the scope of local labour legislation. There are very few exceptions to this. This brings with it a number of considerations for employers implementing relocation arrangements, especially where employment continues in a 'home' jurisdiction.
Employment contracts in the UAE must comply with statutory requirements under the relevant UAE law, including provisions relating to notice periods, termination rights and end of service gratuity or equivalent. Employers must also consider the enforceability of post-termination restrictions, including non-compete provisions, which may operate differently from those in other jurisdictions.
In addition, companies relocating staff to the UAE must decide whether employees will work under the federal labour law framework or within one of the country’s financial free zones, such as the Dubai International Financial Centre (DIFC), which operates its own employment regime. This is a very important consideration, not only in the context of the relevant employment framework, obligations and business protections, but also when considering tax and the ability to trade with or service clients. In reality, often this decision will be determined by where the entity is established. Where there is an existing entity in the UAE, there may be no flexibility in that decision. Where a new entity is established in the UAE, structural decisions can have important implications, particularly when relocating senior executives or establishing regional leadership teams, since the relevant law which applies and the implications arising from that can be far-reaching.
Structuring international assignments
As global mobility into the UAE continues to increase, employers are adopting a range of approaches when relocating employees.
Typically, it will be necessary to move employees onto local UAE employment contracts governed by the relevant UAE law. However, questions will naturally arise around whether to issue or maintain additional contracts in other jurisdictions or whether to put in place an overarching secondment or assignment agreement, and in either case what implications each approach will have.
Each approach carries different legal and operational considerations, including issues relating to employment sponsorship, corporate presence and reward structures. In this context, dual rights considerations are also relevant. Careful planning is therefore essential to ensure that mobility arrangements operate effectively in practice and do not create unnecessary or unforeseen obligations or liabilities.
More broadly, these considerations highlight an important point: global mobility is no longer purely an immigration/visa exercise. It sits at the intersection of employment law, tax, reward strategy and organisational planning and careful consideration must be given to each aspect of the arrangement; and as early as possible in the planning process.
Looking ahead
Until recently, the UAE’s global talent strategy showed little sign of slowing. Continued reforms to immigration pathways, combined with the country’s strategic location and business-friendly environment, have reinforced its position as a hub for internationally mobile professionals. Whether this growth will continue in light of recent events remains to be seen.
For employers, the opportunity is clear. The UAE still offers access to rapidly growing markets and a platform for regional expansion.
But successful relocation strategies require more than simply securing visas. Employers must also navigate the employment frameworks that will govern the working relationship once talent arrives.
In an increasingly competitive global labour market, organisations that take a holistic approach to international mobility, aligning immigration, employment and workforce strategy, will be best placed to build the international teams that modern businesses require.
How can Mishcon de Reya help?
Our UAE employment team advises employers and senior executives on the full spectrum of employment law matters, from day-to-day advisory, workforce planning and strategy, to termination of employment and the enforcement of post-termination restrictions and everything between. To find out more, get in touch.