A picture shows the view of Dubai from inside a capsule of the Dubai Eye (Ain Dubai), the world's largest and tallest observation wheel, located in the Emirati city, near the Dubai Marina, on Oct 21, 2021. (GIUSEPPE CACACE / AFP)

The United Arab Emirates will move its weekend to Saturday and Sunday, breaking ranks with the rest of the Gulf region as it seeks to draw in global investment and business.

The nation will enact the change starting Jan 1, adopting a 4 1/2-day working week, with Friday -- a holy day in Islam -- being a half day, the government said in a statement. The UAE and the rest of the Gulf nations, including Saudi Arabia, currently have a Sunday-Thursday working week. 

The change marks a further step in efforts by the UAE, of which Abu Dhabi and Dubai are a part, to maintain its status as the Gulf’s pre-eminent business hub. Regional competition from neighboring Saudi Arabia is rising as the oil-producing heavyweight engages in an unprecedented drive to attract overseas investment and diversify its economy.

This will align the UAE with global markets and make it easier for international corporations to do business. This will increase the number of days we do business with the rest of the world, which will boost trade.

 Nabil Alyousuf, chief executive officer of Dubai-based International Advisory Group

“This will align the UAE with global markets and make it easier for international corporations to do business,” said Nabil Alyousuf, chief executive officer of Dubai-based International Advisory Group. “This will increase the number of days we do business with the rest of the world, which will boost trade.”

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The government didn’t say in its statement Tuesday whether the private sector would have to adopt the new 4 1/2-day week. It wasn’t clear either if it will lead to a change in trading hours on local exchanges. Stock markets have been rolling out initiatives to boost liquidity and attract foreign investors. 

“As of now, the private sector most likely isn’t compelled to abide by the 4 1/2-day workweek until the labor ministry issues a circular to that effect,” said Habib Al Mulla, a partner at the Baker & McKenzie Habib Al Mulla law firm. “Most likely, it won’t be imposed on the private sector.”  

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The announcement comes in a year in which the UAE has spent more than $6 billion to help push 75,000 citizens into private-sector employment. Like other Gulf countries, the UAE has a large proportion of citizens working in state jobs that offer better pay and shorter hours. 

Other countries across the region may follow the weekend change before long. In 2006, when the UAE became the first in the Gulf to change its weekend from Thursday and Friday to Friday and Saturday, it was followed by Saudi Arabia in 2013 and then much of the Gulf.