The United Arab Emirates has recently taken promising steps towards globalization, especially in the field of real estate by introducing a fresh set of accommodating laws and visa regulations.
UAE has been a favoured destination for professionals and travelers alike due to its strategic location, socio-economic stability, multicultural environment and exceptional infrastructure and amenities. However, due to the recent policy changes, it has become a beacon for foreign investors, especially those looking to settle down in a country that offers them the best of all the worlds.
Open doors for Foreign Businesses
Real estate has always played a major role in the economic development of a country. Reaffirming its future growth and changing its age-old law, the government of UAE now allows 100% foreign ownership in about 122 different economic activities across various sectors. Manufacturing, agriculture, space and renewable energy-related foreign companies especially benefit from this newly introduced law.
Businesses in the field of transport and storage, hospitality, scientific research, information and communication, administrative services, healthcare, entertainment, construction and education among others also will now be authorized to own foreign ownership of their activities, the percentage being contingent to the local governments.
His Highness Shaikh Mohammed Bin Rashid Al Maktoum, the prime minister of the UAE and Ruler of Dubai stated via a social media platform, that this decision was taken by the government to not only “stimulate, activate and facilitate businesses” but to also “open and expand on new economic sectors”. The government’s vision for the future of the Emirates promises a golden opportunity for investors abroad to expand their property holdings in one of the world’s leading economies.
The Gold Standard for Visas
In another bid to drive foreign interest and investment the UAE now allows non-residents of the country to apply for a 10-year visa, also known as the Gold Visa. The Gold Visa has been initiated for exceptionally skilled and talented foreign investors, businessmen and individuals. The visa is available to executives with a salary of Dh 30,000 and investors with a capital of Dh 10 million.
Holding the 10-year visa exempts individuals from the UAE law that prohibits residents of the UAE to stay outside of the country for more than 6 consecutive months. This visa authorizes the individual to move about freely within and outside the country.
UAE also now offers 3-year resident visa schemes for investors who have properties, however with the introduction of the gold visa, investors can choose to settle down or travel the globe at their convenience.
Abu Dhabi and Dubai Taking the Lead
According to a recent report by KPMG’s 2019’s Growth Promise Indicator, UAE ranks at the 22nd position among the vast number of 180 countries included. The report especially states UAE’s Vision 2021 as a driving factor in promoting a more inclusive and sustainable economic growth of the country.
It is Dubai and Abu Dhabi leading UAE towards a flourishing future. Dubai’s expo in 2020 has already begun to generate significant business in the country. EY, a leading consultancy reported that Dubai’s Expo 2020 will contribute to more than Dh22.6 billion and will also add 100,000 jobs to the economy.
Abu Dhabi’s Vision 2030 was initiated by the Crown Prince of Abu Dhabi in 2006. The primary goal of this initiative was to analyze and set goals that need to be seen until 2030. This Economic Vision has steered the direction of not only Abu Dhabi but UAE as well in promoting economic growth and opportunities for its residents and for outside investors looking to become a part of their financial emergence.
Future in the Emirates
The gold mine of real estate investments in the UAE is increasingly opening up opportunities for savvy foreign investors. A report states that UAE real estate is likely to grow at a compound annual growth rate of 4.64% between 2019 and 2023. The growing connectivity with the world and rising oil prices have economists and real estate investors keeping a close eye on UAE, especially Dubai and Abu Dhabi.
Interested in learning more about investing in real estate in the UAE? Get in touch with Krypton Global investments at [email protected] to set up a consultation with our UAE market experts.
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