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Remote work boosts productivity and gives UAE global edge, government report says

Remote work boosts productivity and gives UAE global edge, government report says
10 Jan 2025 01:28

KHALED AL KHAWALDEH (ABU DHABI)

Since the Covid-19 pandemic, remote working has emerged as one of the largest lifestyle and productivity disruptions since the advent of the internet. Many have embraced it as a vital innovation that gives people autonomy over their lives, whilst others do not view it as an adequate substitute for traditional office hours.

A new landmark whitepaper released by the UAE government in conjunction with PwC this week makes a compelling case in favour of remote and flexi hours. 

The report cites various surveys and case studies that argue that remote working not only increases productivity but also gives the UAE a comparative advantage.

"Remote work is here to stay, let us embrace it together," declared Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications. 

"Our efforts have cemented our nation's status as a haven for people who want to work from anywhere, enabled by a digital and legislative infrastructure unparalleled in its support for the modern workforce."

Increased Productivity and Reduced Congestion

According to a comprehensive London School of Economics (LSE) study cited by the paper, which surveyed over 30,000 US workers, remote working is likely to boost overall productivity by 4.6% relative to pre-pandemic levels, largely through reduced commuting time.

The 2024 Global Traffic Scorecard, released by INRIX Inc, a global transportation data and analytics firm found that in Abu Dhabi the average motorist lost 19 hours waiting in traffic, whilst in Dubai this was 35 hours, nearly a full week of work per year.

Whilst substantial spending on roads and transport is aimed at reducing traffic congestion, work-from-home (WFH) policies have become an increasingly compelling solution as the UAE population continues to grow.

A study conducted by Dubai's Roads and Transport Authority (RTA) and the Dubai Government Human Resources (DGHR) Department in 2024, found that implementing flexi hours, with a two-hour start window, and remote work could reduce morning peak travel time across Dubai by 30%.

Dr. Ebrahim Hasan Al Khajeh, Division Director of Human Capital, Abu Dhabi Customs, told researchers that remote working had significantly enhanced the productivity of the organisation since Covid-19. 

He said that by embracing mass digitisation, the organisation was able to improve employee satisfaction, whilst also reducing overhead costs by allowing them to downsize their office space.

"You must create a foundation that resonates with the upcoming generation since this is more effective than just inheriting the old conventional way of thinking," he said. 

Creating a Comparative Advantage

The same LSE study found that around 60% of workers considered working remotely 2-3 days a week equivalent to a significant pay rise, illustrating the innate desire for autonomy over their time.

In the UAE, this trend was even more prevalent, according to the Cisco Global Hybrid Work Study conducted in 2022. A survey of 1,000 respondents employed in the UAE found that 84% of companies support hybrid work practices in some way and over 70% were open to a hybrid working arrangement future.

An initiative by the Abu Dhabi Early Childhood Authority aimed at making the capital a more friendly place to raise kids put flexible working hours at the centre of its strategy.

"Today, parents are not looking for work-from-home solutions. Parents are looking for flexibility; they want to deliver, they want to continue to grow, they want to prosper," Dr. Tariq Bin Hendi, Senior Partner at Global Ventures, told Aletihad last year.

The benefits of WFH policies on employees' livelihoods as highlighted in the whitepaper, are viewed as a major comparative advantage for a country like the UAE, which is seeking to attract the best talent in a competitive global labour market.

In this aspect, the country has appeared to already have made strides. The UAE ranked 4th globally among preferred destinations for remote work in the Visaguides digital nomad index. 

Moreover, according to the Savills Executive Nomad Index, Dubai was the top destination for remote workers, based on a number of economic, taxation and social factors including the "digital nomad and freelancer visas" perks which reduce the burden of costs and bureaucracy.

Challenges

The move to hybrid and digital workplaces is not without its detractors. Recently, US financial giant JP Morgan ordered more than 300,000 of its employees back into the office, citing the need for greater collaboration and communication between colleagues.

Despite applauding and welcoming remote and flexible work, Iman bin Khatam, CEO of the Policies and Programmes Sector in the Dubai Government Human Resources Department (DGHRD), admitted in the whitepaper that isolation, lack of communication and "work creep" were all problems that needed to be tackled through proactive policy.

"Remote workers might experience a sense of isolation and disconnection from their co-workers, which can lead to feelings of loneliness and disengagement. That means managers must communicate often to increase empathy levels," she said.

"They have to provide tools and methods not only for the efficient exchange of information and connectivity, but also to ensure employees' engagement and active participation in different activities."

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