UAE Cabinet approved 5-year, 10-year visas for investors, entrepreneurs, talented expats

Shaikh Mohammad, Shaikh Mansour, Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, Shaikh Nahayan Mabarak Al Nahayan, UAE Minister of Tolerance; Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs and the Future at the cabinet meeting.

The UAE cabinet approved the regulatory framework for the issuance of five and 10-year UAE residence visas to certain categories of applicants.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has announced on Twitter that the regulatory framework to start issuing long-term residence permits for investors, entrepreneurs, innovators and specialised talents is now in place. Departments in the UAE will now start receiving applications, he tweeted.

“The UAE has been and will remain a destination for talents and land to fulfil the dreams of all pioneers", Shaikh Mohammad added in the tweet, as part of his announcements following a cabinet meeting held at the Presidential Palace in the capital.

The UAE Cabinet approved a long-term visa system for investors, entrepreneurs, specialised talents and researchers in the fields of science, knowledge and outstanding students to facilitate business and create an attractive and encouraging investment environment for the growth of business for investors, entrepreneurs and professional talents.

The decision aims to maintain the position of the UAE as an optimal business environment. The visa benefits also include the spouse and the children to ensure a cohesive family and social structure and to create a stimulating environment for stability and growth.

For Investors

The provision defines two categories for investors:

1. Investors in the property of a value of Dh5 million or more will be granted a residence for five years.
2. Investors in public investments through a deposit, an established company, business partnership of Dh10 million or more, or a total investment of not less than Dh10 million in all areas mentioned - as long as non-real estate investments are not less than 60 per cent of the total investment - will be granted a renewable residency visa every 10 years.

For Entrepreneurs

The decision also includes the terms to grant a long-term visa to two categories of entrepreneurs:

1. Those having a previous project with a minimum of Dh500,000, or having the approval of an accredited business incubator in the country.
2. Entrepreneurs will be granted a five-year visa with a possibility for upgrading to an investor’s visa provided they meet the requirements.

The benefits of the entrepreneurial visa cover entrepreneurs, partners, three executive directors, spouse and children. The entrepreneur is allowed entry into the country for six months, multiple-entry visa period, with renewal for another six months.

For Professional Talents

The decision also includes provisions for granting a 10-year visa for specialised talents and researchers in the fields of science and knowledge for doctors, specialists, scientists, inventors and creative individuals in the field of culture and art.

The visa also covers the spouse and children.

All people categorised as professional talents are required to have a valid employment contract in a specialised field, which is of priority to the UAE. Depending on this field, the requirements can include a doctorate degree, publications or global organisation memberships etc.

Professionals and Investors can get a 10-year visa in UAE

Technology entrepreneurs, influencers, high-end individual investors and specialists in certain fields such as science, space and medicine would be eligible for the 10-year visa slated to be implemented by the end of this year, say industry executives.

The UAE government recently announced that it would issue 10-year visas for professionals and investors and will also allow 100 per cent foreign ownership in mainland companies as part of reforms to attract the best talent available in the world and also to lure foreign direct investment into the country.

It is expected that the new reforms will be focused on those professions and industries that meet the UAE's strategic needs.

Speaking at a seminar recently, Dr Raed Safadi, a chief economic adviser at the Department of Economic Development in Dubai, said the key criteria of this new law is to attract investors and would be very generous to bring in all kinds of talent as the emirate seeks a transition towards a knowledge-based economy.

"We have to wait and see the specific directions as to what will include. But from what we have seen is that the initial wave will include technology entrepreneurs, influencers and high-end individual investors in certain areas that the country needs. I think it will not be a blanket for everyone to benefit from this system immediately. Maybe during the time, some new groups will be involved. But for now, I think technology entrepreneurs, influencers, high-tech investors and so on," said Dr Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla.

Replying to a query about the eligibility of doctors, engineers and architects to be part of the 10-year programme, Dr Al Mulla said he didn't expect all these categories will be eligible.

"However, some specialists could be included in certain fields like medicine and so on but I don't think it will be overall for everyone," he added.

On a question whether PhD degree holders will also be given 10-year visas, Dr Al Mulla hopes it will not be a requirement.

"I think they are not looking for academic degree holders but those with some exceptional expertise that the country may need."

Saad Maniar, the senior partner at Crowe and vice-chairman of the members' advisory committee of the Association of Chartered Accountants in the UAE, believes chartered accountants, lawyers, doctors and scientists could potentially be included in the 10-year visa list.

Moreover, professionals holding a master's degree or equivalent, a certain minimum salary bracket and certain designation - directors, etc - could also be considered, he added.

Naveen Sharma, chairman of the Institute of Chartered Accountants of India - Dubai Chapter, claims that the exhaustive list is yet to be released but it seems like various categories such as scientists, investors, entrepreneurs, doctors, engineers and innovators will be covered under this rule.

Sharma feels people with higher qualifications and having a master's degree, PhD, doctoral degree or any other reputed recognised degree in the profession approved under this criteria will be eligible for a 10-year visa.

100% ownership

On the possible eligibility for 100 per cent ownership in the mainland, Dr Al Mulla pointed out that full details are still awaited.

"But from what we have seen, the government is looking for global companies with global means like Google to start with. Those multinationals whose businesses are spread all over the continents. I think technology entrepreneurs, for example, Tesla and so on, are the type of companies that will be part of 100 per cent foreign ownership. I think once they try it and see how it works, then they may start expanding it to other companies and industries. But to start with, it will be these multinationals."

In addition to job creation and minimum investments, Dr Al Mulla says full ownership of a company in the mainland will possibly be linked to job creation for UAE nationals, too.

"I think some of the job creations will also be linked to UAE national recruitment targets. So it is not enough you create jobs but create jobs for UAE nationals. The minimum investment could also be another requirement to obtain full ownership licence in the mainland. But they will be high threshold capital requirements to be able to avail exemptions," he added.

Dr Safadi recently said there would be certain requirements such as minimum investment and a number of job creation for the eligibility of 100 per cent foreign ownership.

Maniar believes that 100 per cent ownership will be allowed only to companies from certain sectors such as healthcare and technology, with more than Dh1 million investment. Additional requirements could be employing over five employees with a certain salary threshold, recruiting a certain percentage of UAE nationals and contributing a certain percentage towards corporate social responsibility after certain a level of profits.

Sharma said currently, a foreign investor can own 100 per cent of a business only in a free zone and not in the mainland. But as per the new announcement, foreigners will soon be able to own 100 per cent of the business outside free zones.

As of now, detailed rules and regulations are not out but in order to obtain full ownership of a business in the mainland, Sharma feels an investor will be required to invest over Dh1 million to be eligible.

"This is a welcome move for the UAE economy and it will surely help the economy to move in the right direction. It will not only attract foreign investors but it will also boost the economy. Creation of new jobs, ease in international trade, a boost in the property market, etc, are some of the advantages among many other advantages from foreign investment," he added.

"People with a 10-year visa will have more sense of security about their future in the country. This can play a very big factor in boosting the property market in the UAE."