Why the UAE rolled out new visa schemes
Long-term residency will attract top expat talents and spur innovation
The UAE’s decision to offer long-term visas to property investors, scientists and entrepreneurs is part of its ongoing efforts to support the country’s move towards a globally competitive knowledge economy and diversify its businesses away from the traditional reliance on oil, according to analysts.
On Saturday, the UAE Cabinet announced long-term visas of up to 10 years. Until now, visas for expats have been valid for two or three years.
10years
Validity of the new long-term visas
Under the new rules, five-year residency visa will be granted to owners of UAE real estate worth at least Dh5 million, while renewable 10-year visas will be provided to expats with investments of at least Dh10 million if non-real estate assets account for at least 60 per cent of the total. Investors will be allowed to bring spouses and children into the country.
5year
residency visas to owners of UAE real estate worth Dh5m
Other rules offer five-year visas to entrepreneurs and 10-year visas for scientists and researchers with top qualifications. Outstanding students can stay for five years.
Analysts welcomed the government’s long-term strategic direction, and said the decision would positively impact investment and employment trends. Jean-Paul Pigat, head of research at Lighthouse Research in Dubai, said the new visas were a step in the right direction and hoped that the policies would be further broadened so that even larger numbers of residents could qualify.
Investors/Real Estate Entrepreneurs
The Fineprint
- The amount invested in real estate must be paid and not loaned
- The property must be retained for at least 3 years
- The visa could be extended to include business partners, provided that each partner contributes Dh10 million
The Questions
- Will the property valuation of Dh5 million (5-year visa) and Dh10 million (10-year visa) extend to all types of commercial real estate?
- Does the visa eligibility apply to existing property that had been acquired for Dh5 million or more?
Outstanding Students
The Fineprint
- Five-year visa for students with a grade of at least 95% in secondary schools, with a distinction of 3.75 GPA upon graduation from any university
- The long-term visa benefit will be extended to include families of the outstanding students
Special Talents: Innovators and Executives
The Fineprint
- Creative individuals must be accredited by the Ministry of Culture and Knowledge Development
- Inventors must obtain a patent of value added to UAE’s economy with the approval of the Ministry of Economy
- Exceptional talents must be documented by patents or scientific research published in world-class journals
- Executives must be owners of well-known and globally-recognised companies
- They must also be holders of high academic achievement, professional experience and position
Doctors and Scientists
The Fineprint
- Holder of a PhD degree from one of the top 500 universities in the world
- Holder of an award for the work in the applicant's jurisdiction
- Contribution to a major scientific research related to the work of the applicant
- Published articles or books in distinguished publications in the field of work of the applicant
- Membership in a selective entry organisation related to the work of the applicant
- PhD in addition to 10-year professional experience
- Specialisation in priority areas to the UAE for doctors
- Scientists accredited by Emirates Scientists Council
- Holders of Mohammad Bin Rashid Medal for Scientific Excellence
The Dh5m property becomes new benchmark in Dubai real estate
Developers get chance to create momentum for upscale homes with new residency initiative
Dubai: Developers here have a new benchmark to aim for — a Dh5 million property — when it comes to targeting buyer prospects.
Because that’s the price that will fetch the buyer a 5-year residency visa and potentially opening up a new growth opportunity within the property market.
And longer residency visas are exactly what is required to open up new investor markets, sources say. “Every market wants a piece of China’s investment power and Dubai is putting itself in a prime position to capitalise,” said Firas Al Msaddi, CEO of fäm Properties.
'Prime assets'
“The announcement underlines the fact the government will not stop until the market is back where it wants it to be. This initiative will be complemented by many others."
“This is the time to acquire prime assets that aren’t available during boom times,” Msaddi added.
In the first rush of the new law coming into effect, Dubai’s government-owned developers would be best placed. Locations such as Mohammad Bin Rashid Al Maktoum City, Creek Harbour and all the “island” locations off the Dubai coast could be beneficiaries.
Starting next year, all Dubai-focused property shows — both held here and at roadshows in key overseas destinations — will see the Dh5 million and 5-year residency connection getting highlighted.
Market sources say that at this moment in time, the higher end of the property market is what requires sustained momentum and this could well provide that.
In a statement, the Dubai Land Department Director-General, Sultan Butti Bin Mejren, said the move will help Dubai “remain on the list of destinations most attractive to investors as well as those seeking high-quality accommodation and educational opportunities.”
Targeting the higher end of the property spectrum has worked well for Dubai and its property market in the past.
In 2011, the upturn brought on by the Arab Spring and the inflow of capital from the rest of the region was initially felt in Dubai’s upscale freehold destinations — the Palm, Dubai Marina, etc.
With a new set of locations being readied, the longer residency options could well propel these on the investor radar. The thinking is that as in any market, end-users will be active enough to take care of mid to lower end of the property market.
“Some investors will recognise the opportunity immediately and those who decide to wait and see what happens will be missing out,” said Msaddi. “Once these equations have made their impact, the market will have already bounced back and they will have missed their opportunity.”
What the market will watch out for
- The new regulation says that “all” property valued at Dh5 million will ensure the owner has access to longer term visa. Will that extend to all types of commercial real estate?
- Whether this applies to existing property that had been acquired for Dh5 million or more. Will this have retrospective effect?
- Those who own a stake in an existing company or partnership valued at Dh10 million and higher will have access to a renewable residency up to 10 years. In this case, the value of the property within that Dh10 million of up to 40 per cent will qualify for visa renewal every 10 years.
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Visa reforms to give confidence to investors, entrepreneurs
UAE relaxed norms for investors and entrepreneurs, to give higher duration visas
Dubai: Businessmen in the UAE are expected to be more confident in investing more as a long-term stay brings more certainty, according to experts.
On Sunday, the UAE relaxed norms for investors and entrepreneurs to get a higher duration visa upon investment of a fixed sum, a few weeks after the UAE upgraded its place in terms of ease of doing business.
“Investors and entrepreneurs will certainly welcome the greater certainty which will facilitate long term investment, R&D and development of new and potentially disruptive technologies,” Chirag Shah, CEO, 1 International FinCentre Associates, an advisory firm, told Gulf News.
In the World Bank’s ‘Ease of Doing Business’ report, the UAE jumped 10 places in the Ease of Doing Business ranking to 11th position globally in 2019 — up from 21st position last year — to lead the Arab world for the sixth consecutive year. The country had a special mention on progress in introducing new reforms and also entered the top 20 in the global ranking.
Among the 10 topics, the UAE scored very high on factors such as getting electricity connection (with top score of 1), paying taxes (2), dealing with construction permits (5) registering property (7), enforcing of contracts (9) and protection of minority investors (15).
“The decision by the government will promote economic growth and further consolidate the UAE’s position as one of the most competitive economies in the world with high ease of doing business,” Adeeb Ahamed, chief executive officer of LuLu International Exchange said.
The implementation leaves room for further improvements, Shah said.
“The per capita GDP impact of talent and capital will be significantly high and will support accelerating UAE’s continued growth — both in terms of ‘quality’ and ‘value’. Several developed economies have successfully adopted and benefited from highly skilled migrants and job creating investor programmes. This well thought-out programme rolled out by UAE can be further developed and fine tuned based on the impact it makes over the next 1-2 years,” Shah added.
The UAE has also announced its decision to give long-term visas to highly skilled professionals, giving an impetus for talented professionals to stay longer.
Long-term visa offers new era for scientists
Scientists can focus on work without any burden
Abu Dhabi: The proposed long-term visa system will usher in a new era for the scientific community in the UAE, according to two senior expatriate scientists.
“Long-term work plan and stability in the profession are very crucial for a scientist,” said Dr Ashraf Khalil, head of research and professor of computer science at Abu Dhabi University.
This will also benefit their organisation. “Definitely the long-term visa will help scientists excel in their work. If they don’t have any burden to bother about [renewing short-term visa etc.], they can completely focus on their work,” said Dr Khalil, a Palestinian–American who has been living in the UAE for 11 years.
He said the new visa regime would help retain the talents currently in the UAE. “It will attract new talents also to the country, making the UAE a hub of scientific talents in the region and the world,” Dr Khail said.
Dr Salim Javed, acting director of Terrestrial Biodiversity Division at the Environment Agency-Abu Dhabi (EAD), said the new visa rule, providing 10-year visa to scientists, doctors and other professionals is a very positive step taken by the UAE leadership. This will not only help retain top quality professionals but will also attract talented and creative professionals to be part of the UAE’s growth and its impressive success story. It is a step likely to pay rich dividends in the long run, he said.
As Gulf News reported, the UAE has decided to grant a 10-year visa for specialised talents and researchers in the fields of science and knowledge for doctors, specialists, scientists, inventors. As well as creative individuals in the field of culture and art. The visa’s advantages include the spouse and the children.
All categories are required to have a valid employment contract in a specialised in fields of priority for the UAE.
Long-term visa for doctors a positive step
Health care community calls it a move towards greater sustainability
Dubai: The UAE cabinet’s decision to implement a long-term visa system for many categories, including doctors and other specialists, has been welcomed by the health care sector. A ten-year visa for doctors would help build a more sustainable eco system for highly-trained specialists looking to stay long-term in the emirate and give a positive boost to the health care industry.
Prasanth Manghat, CEO and Executive Director of NMC Health Plc, thinks of the new law as another step in the evolution and consolidation of health care sector’s best practices.
“The practice of medicine is a fine blend of tradition and innovation, authencity and passion as we all know; it flourishes over a stable period of time. The consolidation of health care practice is currently underway in the UAE and the 10-year visa for health care professionals would further strengthen this process. The medical professionals can now do a better career planning with a look at a stable career span and focus on their patients with a long haul perspective and also invest in their academics and skill upgradation, accordingly.”
Alisha Moopen, executive director and CEO of Aster and Medcare Hospitals, thinks the new law will attract top specialists to come to the UAE with long-term plans and add lasting stability to the sector: “In health care, the most critical and crucial requirement is the quality of medical professionals who are in short supply worldwide. Besides, attracting the best talent among these is a real challenge. In Dubai as per the 2017 statistics provided by the Dubai Health Authority (DHA), only 7.5 per cent of the physicians and doctors are nationals. The rest are all expatriates. We need extremely attractive mechanisms to attract the best talent to ensure sound health care delivery.”
Moopen observed that the inclusion of doctors into the long-term visa eligibility category, indicated a major shift towards building a long term sustainable health care model. “Today for advanced surgeries and treatment, many patients travel abroad, and expats tend to travel back to their home countries. With experienced professionals delivering tertiary and quaternary care across hospitals and institutions in UAE, we can not only make international standards of advanced care locally available, but also continue to strengthen UAE’s position as the hub for international medical care in the region.”
She added: “The new long-term visa law will significantly encourage medical professionals to shift base with families here to enhance health care delivery, look at research opportunities that require long-term commitment. The law will help doctors expand their horizon and build sustainable models for a resilient future proof health care ecosystem which requires the best talent to come on board.”
Visas turn UAE into talent pool of future
Outstanding students and dividends for universities
The UAE Cabinet decision also includes provisions for granting a five-year visa to outstanding students with a passing grade of at least 95 per cent in school, and a distinction of at least 3.75 GPA [Grade Point Average] upon graduation from universities within and outside the UAE. The visa beneficiaries include family members of the outstanding students.
‘Full of win’
The visa rule will not only benefit students, but lead to dividends for universities and the workforce in the UAE, explained Daniel Adkins CEO, Curtin University Dubai’s Academic Infrastructure Provider, Transnational Academic Group.
“I think the new UAE visa regulation is an excellent decision. At the individual level, it rewards outstanding students by allowing them to stay in the UAE and seek employment, thereby providing an added incentive to study in the UAE,” he said.
“For the UAE as a nation, the new decision on long-term visas means the best and brightest graduates will join the workforce, which ultimately benefits all of society.
“Also, it benefits universities in the UAE by providing students more motivation to study harder and give their best to retain the long-term visa. It raises the overall level of all students in the class by motivating them to perform better.
“This is a ‘full of win’ situation for everybody.
“And I don’t think the requirements for the long-term student visa are impossible to attain. Because of our ranking, Curtin University tends to attract top students, a large percentage of whom have achieved 95 per cent or better in their high school exams. At the university level, around 10 to 12 per cent of our students in various programmes are attaining a 3.75GPA.”
New visa rules to support long-term growth of UAE
It is a major step towards attracting capital and skills
The UAE’s decision to grant long-term visas for various categories of investors, entrepreneurs, specialised talents and researchers in science, medicine, knowledge-based professions and outstanding students are expected to boost capital and talent inflows. The move comes at a time when the country is diversifying its economy away from oil and focusing on talent-driven sectors such as financial services, travel, tourism, health care, higher education, aviation scientific research and space technology.
Evidence from around the world indicates that highly educated immigrants contribute significantly to economic growth. Legal certainty on the number of years one can stay in a place is seen as a catalyst in committing talent on creative pursuits, savings and investments. In the UAE, the new long-term visas are expected to significantly improve the prospect of professionals building longer careers in the country. Historically, the transient nature, dictated by shorter term visas, restricted expatriates from taking decisions on their long-term investment plans such as buying a home, building a local stock market investment portfolio, investments in local mutual funds and or committing money in business ventures.
With a history of attracting expatriate talent, the new visa rules will lift the UAE’s profile as a major talent hub. Experience of many developed countries suggests that boosting immigration has helped innovation and productivity. Immigration’s effects on growth in Sweden are estimated to have been higher than many other OECD countries during the period 1986–2006, due to high education levels among immigrants. Many empirical studies on the effects of immigration on innovation have shown that an increase in the overall level of ethnic or cultural diversity helped (skilled) immigrants contribute positively. Even emerging market economies are tweaking their policies to attract talent and investments. China rolled out two new long-term visa schemes to encourage foreigners to live in the country in a bid to strengthen its economic development. China’s Ministry of Public Security began offering longer-term visas for foreigners of ethnic Chinese descent that would allow them to stay in the country for up to five years.
The changes in UAE’s immigration policies also point to the changing priorities. After the discovery of oil, the country was focused on building infrastructure and a sustainable, diversified economy. While infrastructure development required unskilled labour, the country is now moving towards more knowledge-driven economic pursuits that warrant inflow of talent and resources, demanding more sustainable immigration rules.
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