UAE Adjusts Work Visa Policy Amidst Demographic Diversity Concerns
In a recent development, the UAE Ministry of Human Resources and Emiratisation has temporarily suspended the enforcement of a demographic diversity rule. This rule, which had been a point of contention for many businesses, mandated a varied mix of nationalities within companies and had led to numerous work visa rejections, particularly for South Asian nationals.
Abeer Al Husseini, a Dubai-based partner at an immigration law practice, confirmed the suspension, noting that applications previously rejected due to non-compliance with the diversity requirements are now being reconsidered. While the policy is on hold, its future implementation remains expected, with no specific timeline provided by the ministry.
This demographic rule requires companies to ensure a diverse nationality mix in their workforce, placing potential restrictions on visa applications for nationalities representing 20% or more of a company's employees. This policy significantly impacts Indian nationals, the largest expatriate group in the UAE, followed by Pakistanis and Bangladeshis.
Libbie Burtinshaw, head of operations at visa services provider PRO Partner Group, highlighted the evolving nature of this situation, pointing out inconsistencies in the application process and the discretionary power of the ministry in approving or rejecting permit applications.
A Dubai business owner expressed concerns about the policy, emphasizing that while diversity is beneficial, enforced measures could lead to workplace friction. This rule, part of the mainland company classification regulation, currently applies to new work visa applications and excludes free zones. Companies with higher classification tiers enjoy certain incentives and exemptions, including advantages in government tender bids.
The expatriate community in the UAE significantly outnumbers the local citizens, with UAE nationals constituting about a tenth of the total population.
Pros:
In a recent development, the UAE Ministry of Human Resources and Emiratisation has temporarily suspended the enforcement of a demographic diversity rule. This rule, which had been a point of contention for many businesses, mandated a varied mix of nationalities within companies and had led to numerous work visa rejections, particularly for South Asian nationals.
Abeer Al Husseini, a Dubai-based partner at an immigration law practice, confirmed the suspension, noting that applications previously rejected due to non-compliance with the diversity requirements are now being reconsidered. While the policy is on hold, its future implementation remains expected, with no specific timeline provided by the ministry.
This demographic rule requires companies to ensure a diverse nationality mix in their workforce, placing potential restrictions on visa applications for nationalities representing 20% or more of a company's employees. This policy significantly impacts Indian nationals, the largest expatriate group in the UAE, followed by Pakistanis and Bangladeshis.
Libbie Burtinshaw, head of operations at visa services provider PRO Partner Group, highlighted the evolving nature of this situation, pointing out inconsistencies in the application process and the discretionary power of the ministry in approving or rejecting permit applications.
A Dubai business owner expressed concerns about the policy, emphasizing that while diversity is beneficial, enforced measures could lead to workplace friction. This rule, part of the mainland company classification regulation, currently applies to new work visa applications and excludes free zones. Companies with higher classification tiers enjoy certain incentives and exemptions, including advantages in government tender bids.
The expatriate community in the UAE significantly outnumbers the local citizens, with UAE nationals constituting about a tenth of the total population.
Pros:
- Aims to ensure a balanced mix of nationalities in the workforce.
- Encourages workplace diversity.
- Offers potential benefits for companies with diverse employee demographics in terms of incentives and government tenders.
- Has led to the rejection of work visa applications, particularly affecting South Asian nationals.
- Implementation inconsistencies and discretionary approval processes.
- Potential to block skilled and qualified talent due to strict nationality quotas.
- Concerns about enforced diversity causing workplace friction.
- Uncertainty due to lack of a clear timeline for reinstating the rule.