UAE seeing a ‘rush’ of applicants for US EB-5 visa programme ahead of court ruling

The Northern District California court is expected to give its judgment later this week on a lawsuit challenging certain EB-5 regulations, which, according to immigration experts, could potentially bring down the investment requirement to the pre-amended regulations level of $500,000 from the existing $900,000 for a limited period until the administration ratifies the new guidelines.

The lawsuit, filed by the Behring Regional Center, challenges whether or not the changes made by the Department of Homeland Security (DHS) under the Trump Administration were adopted legally.

The existing programme guidelines require would-be immigrants to invest a minimum of $900,000 in ‘targeted employment areas’ that are either rural or face high rates of unemployment.

“Although we are uncertain yet as to what the judgment will in fact be, we have seen a big rush in the number of fresh applications and also demand from those providing documentation and waiting, to move forward, in the recent weeks in anticipation of a lowering of the minimum investment,” Preeya Malik, managing director of the Dubai-based Step Global, a firm specialising in the US and Canadian immigration, told Arabian Business.

“Many people who hadn’t applied before November 2019 when the price increased are now coming back in anticipation of the price drop, hoping to apply as they feel they have missed the boat back in 2019,” Malik said.

Malik said Indian applicants from the region are the largest pool among the applicants for the EB-5 visa programme.

There have been talks and reports about many Indians trying to move abroad for a more secure and peaceful place to live in the wake of the upheavals – political, health and economic – of the past 12 months in India.

Senior executives at some of the other immigration consultancies also confirmed the sudden surge in the applications for the US immigration scheme for the wealthy.

Preeya Malik, managing director of the Dubai-based Step Global

“Yes, we are definitely seeing a lot of interest, although the court order on this hasn’t been announced yet,” an executive with another Dubai-based consultancy said.

“The numbers now compared to earlier periods have been up by something like ten times. For example, if there was, maybe, one client per week prior to this news, now there are 10 per week with this pending news,” said the executive, who wished not to be identified.

Industry officials said there was a considerable slowdown after the minimum investment was increased in 2019 to $900,000. There were only 114 applications globally that year as compared to tens of thousands in previous years.

The US grants a total of 10,000 EB5 visas in a year, with a country quota of 700 each. Globally, Chinese account for the maximum number of applicants, followed by Indians.

Malik said the industry was hoping that the judgment comes out this week so that they know which direction it is going, though the US Citizenship and Immigration Services (USCIS) has indicated that it has no intention of decreasing the price.

The US grants a total of 10,000 EB5 visas in a year, with a country quota of 700 each

“Therefore, it will be only for a small window [of time] if the price is reversed – till the time the US authorities ratify its new guidelines,” Malik said.

Significantly, the current rush to apply for the EB5 programme comes even as there are no clear indications on the extension of the programme, which has a sunset clause ending on June 30, 2021.

Malik said there was no real news about the programme’s extension yet.

“We understand that there are various bills currently being passed around in terms of the June 30 extension – one for extension with a hike in price, one for lowering to $500,000 and another one for a middle ground at $700,000.

“Everything is sort of up in the air now,” Malik said.

She said the extension could also depend on the outcome of the current case.