An announcement made in May of this year in the United Arab Emirates (UAE) that had the potential to permanently alter the country’s business landscape – the introduction of 10-year visas for investors and 100 percent foreign ownership of local businesses – generated a lot of excitement in the country at the time. There was much conjecture over the course of a number of months regarding the particulars of the new ruling’s implementation and the requirements needed to be qualified for a long-term visa. At long last, the mystery surrounding the new visa system has been dispelled, and we now have a more precise understanding of its components.
Content Recap:
Investor Visas
The long-term visa is broken down into two categories for investors, which are as follows:
- Those who invest a minimum of Dh 5 million in the UAE, whether it be in real estate or something else, will be eligible for a residency visa valid for a period of 5 years.
- Those who make an investment of at least Dh 10 million will be eligible for a 10-year residence visa in the UAE; however, the visa comes with the requirement that at least 60 percent of the total sum must be placed in an investment that is not related to real estate. The investment may also take the shape of a business partnership or an investment into a locally based business that was already in operation.
The announcement that an investment of Dh 5 million will ensure a longer residence visa is good for investors who are interested in purchasing into Dubai’s lucrative off-plan sector. This investment will secure a longer residence visa. However, in order to reap all of the benefits, one must first consider making a diversified investment portfolio, of which real estate should be only one component. It is an excellent method to disperse more money around the economy, which may lead to an increase in investment in areas that have been neglected in the past.
Before making an investment, one must, however, keep in mind that there are a few conditions that must be met. Both of the aforementioned categories are subject to the stipulations that are listed below:
- The sum that is invested must be wholly owned by the investor, and there should be no loans involved in any way. To substantiate the claim that the whole amount belongs to the investor, supporting documentation ought to be supplied.
- It is recommended that the investment be held onto for a period of at least three years under a standard liability. It is recommended that the financial solvency of the investment not exceed Dh 10 million.
- The long-term visa is also available to business partners, but only on the condition that each partner has committed a minimum investment of 10 million UAE Dirhams. It is also possible to extend the visa so that it covers the applicant’s spouse and children, in addition to one executive director and one advisor.
- After making an investment, investors will be eligible for a multiple-entry visa valid for a period of six months upon completion of the application process for a visa valid for a longer period of time.
Other Visa Types
If an entrepreneur meets all of the aforementioned requirements, they will be eligible for a visa that is valid for five years and has the potential to be upgraded to an investor visa. Students who demonstrate that they are capable of excelling to an outstanding level may be eligible for a five-year visa, whereas researchers, doctors, and other professionals working in the domains of science and information are only eligible for a 10-year visa.
Economic Growth
The United Arab Emirates has always been a great choice for investors who are searching for attractive profits and a secure environment in which to conduct business. These new initiatives will help to make the United Arab Emirates (UAE) an even more attractive destination, which will be beneficial not only to investors but also to the economy of the country itself. This will be accomplished by encouraging ongoing investment and growth across all commercial sectors.