Over the past 50 years, the UAE has demonstrated consistent improvement to elevate its global stature. This progress has been spearheaded by the country’s forward-thinking nature and determined long-term vision.
Adaptable policy frameworks, frequently updated regulations, a flexible business environment, and diversification away from oil have solidified it as the Arab world’s second-largest economy.
On top of this, the UAE’s renowned emirate, Dubai, has increasingly flourished to complement the country’s growth. Moving up one spot from its 2021 ranking, Dubai ranked 22nd in the Global Cities Index 2022; significant growth in business activity, human capital, and political engagement have also helped the metropolitan city maintain its grip for the top spot in the MENA rankings while it has attracted investors from all over the world.
Moreover, Dubai is now seen as the most cosmopolitan city in the world with 90 percent of its residents being foreigners.
The introduction of the UAE Golden Visa in 2019 bolstered the country’s appeal further. Since the programme’s inception, over 65,000 recipients, across sectors such as science, entrepreneurship, and healthcare have been awarded this residency-by-investment (RBI) visa to reinforce the country’s strength on an international scale and simultaneously see an influx of investment that has benefited its economy.
Why has interest in the UAE’s Golden Visa surged?
As a 10-year residency programme, the Golden Visa is providing greater stability for those who successfully acquire it. In addition to expatriates being able to work, live, and study in the UAE without needing a sponsor, the country’s RBI initiative also provides the ability to stay outside of the UAE for more than the usual restriction of six months to keep one’s residence visa valid, and enables 100 percent ownership of their businesses on the country’s mainland, among other benefits.
During a time in which the world is experiencing great turbulence, these advantages have sparked strong interest among foreign investors. Increased inflation rates, a looming recession, and the UAE’s strategic location, which makes it favourable for conducting global business, have also been key contributing factors. As a result, Dubai is expected to attract a significant share of the global residence by investment (RBI) market, which is expected to grow five times to $100 billion by 2025.
As tighter regulations continue being placed on companies and people around the world, the UAE’s visa reforms have been a timely introduction. The country’s known tax-free incentives will also continue attracting significant investment as businesses can easily shift to the Middle East to bypass inconvenient restrictions.
This is being seen first-hand as Dubai currently ranks as the leading foreign direct investment (FDI) hub; it attracted 492 FDI projects during the first six months of 2022 reflecting an 80.2 percent increase from the same period last year .
Why will foreign investment in the UAE hold steady?
Leading real estate developers have now begun offering Golden Visas to those who are willing to invest a minimum of AED 2 million in Dubai’s property sector and this is seeing notable interest from Indian, British, Italian, and Russian nationals, respectively. Significant investment has also come from French, Canadian, Pakistani, and Egyptian investors.
Moreover, Dubai ranks as the 23rd most popular city in the world for ultra-wealthy residents with approximately 65,000 millionaires situated in the emirate. As more HNWIs make the UAE their home, the UAE’s Golden Visa programme will be increasingly sought out, and this will subsequently accelerate Dubai’s breakthrough to become one of the top 20 wealthiest cities in the world by 2030.
Portugal implemented a similar Golden Visa a decade ago, and its proven success can be viewed as a benchmark for other countries looking to capitalise on providing such incentives.
During these ten years, over AED23 billion has been invested into Portugal’s economy and 29,253 people have obtained their Golden Visa; the UAE has seen its Golden Visa awarded to more than double this number of recipients in a significantly smaller window of time, and there is still tremendous room for growth.
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