The recent UAE Government reshuffle is in line with global changes and will help grow the country’s knowledge economy. 

By Xische Editorial, July 14, 2020

The UAE Government under the direction of His Highness Sheikh Mohammed bin Rashid, announced a major reshuffle this month. Ministries and departments across the Government will be merged to create a more agile governing structure. Just like the creation of the Dubai Council at the start of 2020, this decision is vital to the UAE’s efforts to be one of the most responsive and forward-thinking in the world. In light of the global Covid-19 pandemic, this announcement couldn’t have come at a better time. 

The Covid-19 pandemic has accelerated trends across the global economy and in global governance. Working from home has become standard practice across many sectors, while future technologies such as digital infrastructure are more important to growth than ever before. The UAE’s Government reshuffle is perfectly in line with the changes taking place and will help grow the country’s knowledge economy. 

Consider these two major changes: 50 percent of government service centers will be transformed into digital portals within two years and a new ministry will be established for industry and advanced technology. The new Government will focus on building the nation’s knowledge economy and ensuring that our digital infrastructure is among the best in the world. 

"The new government has one year to meet the new priorities," Sheikh Mohammed said as he announced the sweeping changes. "Constant changes will remain the slogan of the coming period until we reach the best government model that keeps up in this new era and achieves the aspirations of the Emirati people."

The announcement comes amid a flood of positive news about the UAE’s economy despite the ongoing Covid-19 pandemic. The non-oil private sector has returned to economic growth for the first time since the start of the pandemic. The National reported that the upturn was the strongest since October 2019. 

This growth comes as the first round of international tourists returned to Dubai in another sign of economic recovery in the private sector. Balancing health protocols and the opening of the economy is a major challenge for every society right now. The UAE’s efforts are bolstered because it maintains one of the most advanced Covid-19 testing operations in the world. While the pandemic remains the defining challenge of our times, our approach to handling the crisis is showing positive results. 

The new ministers will certainly have their work cut out for them. One thing they can focus on is further streamlining digital business. The remote work transformation we’ve all experienced over the last months is especially encouraging for the UAE. Without the need for relocation fees, local companies can seek out the best talent anywhere in the world while keeping costs down. Focusing on this sector of the knowledge economy will pay incredible dividends as the UAE positions itself as one of the strongest countries to emerge from this pandemic. 

Considering the labor market changes, there are additional positive points on the horizon. Further advancements in automation and artificial intelligence will enable the UAE and other Gulf nations to rely less on imported labor. This will mean more resources can be diverted into knowledge-based sectors since there will be fewer people to physically look after. Thus, the current labor migration we are seeing is a critical step towards a more streamlined economy ready to focus more on the knowledge and technology sectors.  

With regard to labor and the knowledge economy, Estonia is a great model of effective government. The tiny Baltic nation has invested in digital business, entrepreneurs, and nomads while keeping their physical population small. This investment has enabled Estonia to become one of the most advanced knowledge economies in the world. As the UAE undergoes a labor transformation and a government reshuffle, we have to bear in mind that the changes will allow us to become a much stronger technology-first nation. We are on the right path and the recent news shows that we are on course.