The UAE’s updated Golden Visa regulations are the latest in a string of initiatives making the city a “favourite destination” for talent and increasing its attractiveness as a place to live and work, industry stakeholders told Arabian Business.
Increased flexibility in the issuance of other visa types will also attract visitors, job seekers and investors to the country.
“The UAE continues to be among the most attractive job markets for regional and global talent, with many professionals and entrepreneurs looking to make their next big break there. The ‘Job Index Survey’ conducted recently by Bayt.com & YouGov, has revealed that over three-quarters (76 percent) of UAE employers are planning to hire new employees in 2022,” said Ola Haddad, director of Human Resources, Bayt.com, the Middle East job site.
“Always a favourite work destination for entrepreneurs and startups owners, the UAE is becoming even more so lately with the issuing of the new rules. The updated Golden Visa regulations will probably attract more talent from all over the world, encourage investments in the UAE, and create new job opportunities. This, in return, will enhance the country’s global competitiveness and strengthen its position as an ideal destination to live, work, and invest,” she continued.
The new visa rules will go into effect in September and are expected to attract an even wider talent pool to the UAE, given the changes.
“The latest amendments to the Golden Visa offer greater certainty to those looking to locate in the UAE and this will generate spillover benefit to investors, especially in those sectors dependent on high skilled labour. Previously, the Golden Visa was fairly exclusive and focused on those who have made a fairly sizeable investment or contributed to the economy over a number of years,” said Scott Livermore, ICAEW economic advisor, and chief economist and managing director, Oxford Economics Middle East.
“The latest changes make the Golden Visa more forward-looking and dynamic. A wider range of skilled and qualified individuals qualify and can come to the UAE with security about their visa situation thereby reducing uncertainty around their status should, for example, their employment situation change. This will encourage individuals to come to the UAE and come here with a more permanent mindset which will likely lead to greater investment in local real estate and help the UAE financial sector.
“And with a less transient pool of labour, investors will also have more confidence that they can establish and expand businesses with the investments they make in their workforce generating a longer-term return and reducing the risk from higher staff turnover. The reforms to the ten-year-residency seem an important step in attracting and retaining talent and this will also increase the UAE’s attractiveness to investors,” he continued.
Impact on real estate
The updated ten-year-residency regulations will have a positive impact on the real estate industry in mid to long term, opening up new categories of buyers and investors.
“The updates to the Golden Visa showcase the initiative that the UAE government has been taking to continuously enhance the attractiveness of Dubai as a place to live, work and invest. These initiatives are well-placed to support the already attractive and active real estate environment in the city. Furthermore, these updates and increased flexibility for other visa types is likely to go a long way in attracting new visitors, residents, knowledge workers and investors, while creating an environment which supports a more long-term view to life in the UAE for the existing population.,” said Gabriella De La Torre, director – consulting, at CBRE in Dubai.
“What we have witnessed throughout the past few years especially, is the government’s focus not just on economic recovery in light of the pandemic but in furthering continued economic growth. These initiatives, coupled with continuously enhancing infrastructure, ease of doing business and quality of life, are critical to attracting the knowledge and talent linked to long-term economic initiatives in key sectors, such as clean energy, technology, healthcare and education, among others.
“From a long-term perspective, the expanded visa alternatives also have the potential to contribute to the shaping of the future demographics of the UAE, creating potential opportunities in new segments, such as senior living and retirement communities as well as co-living catering to young professionals and entrepreneurs,” continued De La Torre.
Visa to attract more job seekers to UAE
Under the new rules, the long-term visas extend greater benefits for family members residing in the country, and offer flexible grace periods of up to 6 months after the expiry or cancellation of residency.
“The loosening of the requirements for obtaining a Golden Visa will make it more accessible to a larger number of people. The introduction of long-term residency visas to individuals of exceptional talent will increase the talent pool in the country and increase the competitiveness of the labour market and the loosening of the restrictions around short-term entry visas will bolster the tourism industry,” said Jessica Ashford, COO of PRO Partner Group.
“These changes will have a significant impact on the UAE economy and business ecosystem and are certain to aid the country’s ambitions to be at the forefront of new growth industries as well as making it more accessible and attractive to foreign investors,” she continued.
Startups founders and entrepreneurs also benefit from the updated visa regulations, further contributing to job creation in the UAE.
“The UAE has always done what it can to attract foreign investment; however the latest updates to the Golden Visa will usher in a new generation and scope of foreign investment which will serve to boost the UAE’s global position as an investor-friendly business ecosystem,” said Bradley Moran, associate at BSA Ahmad Bin Hezeem & Associates LLP.
“The newly implemented executive regulations extensively expands the qualifying categories for the Golden Visa targeting those of the innovative, pioneering and hard-working persuasions. It is clear from the expanded categories that the UAE seeks to attract the next generation of skilled individuals and entrepreneurs from all over the world to bring their dreams and potential here to the UAE by introducing a future stabilising factor, in the form of the Golden Visa, to an already well-established business environment well suited to investment and growth of startups.
“Moreover, the latest revisions now enable holders of the coveted visa to stay outside the UAE for as long as needed (without it affecting their residence status), sponsor their family members (including spouses and children regardless of their age) and sponsor an unlimited number of domestic support staff (as needed). Thus, any concerns one might have had regarding long-term residency, family stability or international travel have now been assuaged,” he continued.
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