Dubai-based Shuaa Capital on Wednesday announced a partnership with Arton Capital, the global advisory firm specialising in investment-based social impact programs, to encourage foreign direct investment through the establishment of real estate development funds focused on high growth markets.
The partnership aims to create investment products including a 100 million euro ($118 million) fund to attract foreign investment into markets such as Montenegro and satisfy the growing demand for second residency and citizenship programs.
Shuaa said in a filing to the Dubai Financial Marker that the funds will target returns in excess of 20 percent through the acquisition, development and sale of real estate projects to investors seeking second residency and citizenship.
It added that two mixed-use projects in Montenegro have already been identified as potential investments ready to apply for approval by the Montenegrin government within its Citizenship by Investment portfolio of qualified projects.
Mustafa Kheriba, deputy CEO and head of asset management at Shuaa, said: “Citizenship by Investment is a competitive global market and the Covid-19 pandemic has only further increased demand as more and more people across the world are now thinking of how to medically, socially and financially secure their future.”
Armand Arton, founder and president of Arton Capital, added: “The ability to attract foreign direct investments is essential for countries, especially during these times. This partnership will play a key role in helping governments attract foreign direct investment to help boost economic development and growth.”
With several government mandates, Arton has been instrumental in attracting more than $4 billion in foreign direct investment to countries through social impact investment programs in the last five years related to residency and citizenship.
(From left) Mustafa Kheriba, deputy CEO at Shuaa Capital and Armand Arton, founder and president of Arton Capital
The partnership announcement comes as the number of countries attracting foreign direct investments through Citizenship by Investment programs has continued to rise over the past decade as the economic contribution helps boost local economies to close budget gaps, enabling governments to inject fresh capital into building infrastructure, growing tourism, funding local companies and increasing employment opportunities.
Around the world – particularly in many parts of the Middle East – people are increasingly looking towards second citizenship to protect their assets and ensure a prosperous future for themselves and their families.
To obtain that opportunity, many have turned to citizenship and residency by investment programmes.
In a number of countries ranging from Caribbean islands such as St Kitts and Dominica, to European Union countries such as Cyprus and Malta, it is legal to obtain citizenship provided that one obtain certain criteria, which may include financial contributions through real estate or a one-time investment. Other factors include stringent background checks.
Last year, the government of Moldova temporarily suspended a scheme that had been used to entice customers by a Dubai developer.
The Moldova Citizenship-by-Investment programme made global headlines in June 2019 following Dubai developer Kleindienst Group’s announcement that investors in its Heart of Europe project on The World would be eligible for Moldovan citizenship.
As part of the offer, those who invest AED5 million ($1.36 million) into the project would be eligible to apply but Moldovan president Igor Dodon intervened to suspend it.
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