NEW UAE EXPAT VISA RULE TO BOOST ECONOMY & REAL ESTATE SECTOR
UAE’s decision to introduce a new five-year visa for retiring expats and reduce tariff for industrial sector is likely to boost the economy and real estate. The initiatives aim to retain expat retirees and also facilitate industrial sector in a bid to support businesses in the country.
Abu Dhabi: The UAE Government on Sunday approved series of initiatives to boost investor confidence and stimulate business growth in the country. The Cabinet, chaired by H.H. Sheikh Mohammed (Vice President, Prime Minister and Ruler of Dubai) adopted a resolution to support UAE economy and industries by introducing a new five-year visa for expat retirees older than 55 apart from reducing electricity charges for large, medium and small sized factories in the country.
Long-term Visa to Positively Impact Real Estate Sector
Under the new law which will be in effect as of 2019, expats over 55 will be eligible for a long-term visa if they either own a real estate property worth Dh 2 million, have financial savings over Dh 1 million or active income of Dh 20,000 per month.
The new visa law is likely to encourage expats to remain in UAE in later stages of their life as well as it ensures that capital is retained within the UAE economy. In addition, the move is likely to impact UAE and Dubai’s real estate sector and bridge the gap between current supply and demand. Near around 88 per cent of UAE population is expatriate with Indian, Pakistani, Chinese, Egyptian and Jordanian among the top 10 investors in Dubai’s real estate.
UAE Industrial Sector
In another initiative, the UAE government reduced tariff for FEWA electricity consumption for the industrial sector to support. The fee for large factories is reduced by 29 per cent while 22 and 10 per cent respectively for medium and small sized factories. In addition, a service connection fee for new factories is waived to encourage investors. The initiative will have a positive impact on industrial sector enabling businesses to reduce their operational cost and become more competitive.
UAE Economic Reforms 2018
In the aftermath of regional and global political crisis, which impacted UAE economy, the government responded by introducing larger economic reforms to support local businesses and industries which includes 10-year visa for investors & knowledge specialist, five year residency visa for expat students and 10-year visa for exceptional students and 100 per cent ownership to foreign companies in UAE.
UAE Key Economic Initiative
- 10-year Visa Rule for Investors & Knowledge Experts
- Long-term Residency Visa for Expatriates after Retirement
- Tariff Reduction for Industrial Sector
- 100% Ownership for Foreign Companies (Business Owners & Investors)
- US $50 Bn Economic Stimulus Package by Abu Dhabi Government
- Government Fee Reduction related to Aviation, Real Estate& Hotel Industries
- Administrative Fines exemptions for existing Businesses in UAE (Dubai & Abu Dhabi)
Government Initiatives Impact on UAE Economy
The new decisions by the UAE government are heralded as a revolutionary one, as it has the potential to attract unprecedented amount of investment in UAE’s economy as well as retain talent and retiring expatriates in the country. The government decision is expected to be a major game changer in the times ahead.
UAE – An Attractive Investment Destination
UAE and Dubai have always been an investment friendly destination offering attractive investment environment to international companies that are looking to tap into the Gulf region. The country has also developed world-class infrastructure in the form top quality airports, hotels, public facilities and economic zones, which furthers its evolution as an international business destination.
UAE has also developed world-class infrastructure in the form top quality airports, hotels, public facilities and economic zones, which furthers its evolution as an international business destination. A robust existing framework in conjunction with new rules to facilitate expatriates and businesses can add a lot of value to the economic growth of the country.
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