Dubai: An increasing number of new arrivals in the UAE, especially those from the tech and business consultancy realms, are turning to freelance and short-term contract work instead of full-time employment, according to HR consultants and recruiters.

The UAE, predominantly Dubai’s population, is on the rise, with data from the Dubai Statistics Centre showing an annual increase of 86,607 people. As of Friday (September 15), the emirate’s population reached 3,623,883 people. And this growth has created a demand for more jobs, more skilled workers, and more goods and services, said Kearny.

According to Nathan Kearney, Managing Director of Executive Search., companies and employers are adopting a ‘try before you buy’ approach. “Newcomers are exploring the job market through freelance work for a year or two before considering the possibility of transitioning their short-term contracts into full-time employment,” said Kearney.

And companies require the flexibility to assess talent before making long-term commitments, making it a win-win for both employers and organisations.

Compared to a year ago, the UAE’s freelance and short-term work visas have transformed the job market, bringing in many benefits for workers and local organisations. Professionals are enticed by the flexibility inherent in freelancing, while companies leverage the cost advantages of hiring short-term workers.

“There has been a noticeable year-on-year increase in the number of freelancers and short-term contracts, as employers are recognising the significance of Asia, Africa, and the MENA region in terms of talent acquisition,” said Kamal Reggad, CEO and Co-Founder of RemotePass.

“These regions boast a pool of approximately 770,000 skilled tech professionals, making them a prime destination for talent acquisition. Many companies are eager to tap into this goldmine of talent,” he added. Companies gain a competitive advantage by leveraging cost-effectiveness by saving on office space, utilities, and facility fees.

Vikram Malhotra, Managing Director, Middle East & North Africa of Outsized, said, “Internationally, the UAE is becoming a magnet for freelance talent. Our portal has seen a massive increase in applications and sign-ups from local professionals, signalling a shift in career preference.”

“The hiring process also becomes more streamlined, as interviews can be conducted remotely, reducing logistical efforts and enabling access to the best talent quicker,” explained Reggad. Overall, there has been a 30 to 40 per cent increase in the number of individuals opting for freelance roles, said Karuna Agarwal, Director of Future Tense HR. Reggad is reporting a 50 per cent increase in this trend.

On-time payments for freelance work, however, continue to remain a challenge for freelance workers. There are no set market rates for the work provided; the payment terms depend on the type and duration of work.

For example, short-term contract workers in graphic design earn between Dh40 and Dh150 per hour, and those in the business consultancy space can take home anything between Dh30,000 and Dh40,000 per month.

Karuna said freelancer payments often align with the regular salary cycle of the company. “Sometimes freelancers expect payments for the work they do almost immediately. However, that’s not always the case,” she said.

Industries and function areas where freelancers are commonly utilised include recruiting for HR projects, accounting and data entry tasks, marketing and communications roles (e.g., copywriters, graphic designers, UI/UX designers), and project-based work for industries such as real estate.

“Freelancers in these domains can earn in the range of Dh15,000 to Dh20,000 per project, depending on their expertise and complexity,” said Karuna.

Business consultants are another category of freelancers in demand. “For example, a manufacturing company that engaged a business consultant on a freelance basis is paying Dh30,000 to Dh40,000 for a three-month project. And freelancers in this role usually come with extensive work experience and expertise,” she added.

According to recruitment firm Outsized’s mid-year demand trends report, there has been a 125 per cent growth in demand for risk professionals and a 200 per cent increase in demand for consulting roles from H1 of last year to H1 of 2023.