GCC Inching Closer to Unified VISA System

Following the recent announcement of relaxed labour laws in the UAE, the Gulf Cooperation Council (GCC) states have announced that they are working on issuing ‘unified’ visas for ‘foreign tourists and businessmen’.  This is common sense – it means that people travelling to one GCC state on business will not need to apply for new visas when hopping around what is a relatively small geographical area.  It also makes life easier for GCC citizens wishing to take their foreign employees with them as they move around the region – maids for example.  Previously a maid would have to apply in advance for a visa to another GCC state, hindering the smooth movement of citizens (and therefore business). 

It will be interesting to see how this plays in Saudi Arabia, which has tough entry criteria – business men usually need an invitation from a business partner within the country before applying for an entry permit, a process which takes days or even weeks.  It will also be interesting to see if Saudi Arabia implements special provisions to prevent access to women who hold a unified visa.  Clearly such matters will take time to be ironed out but the thrust of all of these new laws is towards a more open, flexible business environment.  Great news for the region and for companies doing business here. 

- George Stothard

No objections?

The UAE government made, by local standards, a seismic shift in labour law on January 1^st 2011.  From January 1^st, foreign workers switching jobs will no longer need a no objection certificate (NOC) from former employers.  Humaid Bin Deemas, acting Director-General at the Ministry of Labour, announced that “Workers, skilled and unskilled, who end their job contracts legally and complete at least two years of service, will get a labour permit outright.”.  Previously all foreign workers were required to get a letter from their former employer that gave them ‘permission’ to go ahead and  take up another job.  If the employer chose not to issue the letter then the individual was banned from working for six months and would have to return to their country of origin. 

Flexible labour markets allow for the fluid movement of talent within an economy; providing flexibility for business and the freedom for individuals to build careers.  It demonstrates confidence in those that govern.  It is a wise decision to make in the middle of a global recession and the UAE government should be applauded.  It will make life much easier for residents choosing to move jobs and it will provide more certainty for employers when recruiting. 

- George Stothard