High demand for UAE Golden Visas amid global turmoil
MORE INDIVIDUALS LOOKING AT UAE CITIZENSHIP BY INVESTMENT PROGRAMME
The demand for citizenship by investment and UAE Golden Visas is booming as residents and companies seek greener pastures amid rising global inflation rates and an uncertain economic landscape.
Though many European, Caribbean and North American countries offer robust citizenship by investment programmes to high net-worth and ultra-high net-worth individuals, UAE’s Golden Visas are fast becoming a gold mine for foreign investors, say immigration consultancies.
As more real estate developers are lining up off-plan launches targeted at investors wanting to take the Golden Visa route, heads of immigration consultancies have said demand for the ten-year residence visa is almost at par with the demand for second passports from countries overseas.
For example, many Americans who visited Dubai either for Expo 2020, to expand business propositions, or to flee restrictive Covid-19 measures are now giving more significant consideration to building a base in the UAE, said Shai Zamanian, US-licensed lawyer, EB-5 expert and director of the American Legal Center in Dubai.
“Many Americans arrive with means and see the value in investing in the UAE economy and being rewarded with the Golden Visa. We expect a high volume of foreign direct investment built upon UAE initiatives. But once the dollar floods in, so will the volume of Golden Visas for American nationals,” said Zamanian.
Cost factor
The UAE Golden Visa, which costs $136,000 for investors, is still a much cheaper option than the Portuguese citizenship by investment programme, which costs $280,000. The investment amount for the US is $800,000, locked in for five years.
Preeya Malik, the Director at STEP Global, said: “For CBI [citizenship by investment] programmes, interest has been rising in these over the last seven to eight years at approximately 30 per cent annually”
She added, “2021 was one of our best years in terms of application rates. However, globally there was only a slight uptick [maybe 15 per cent] from 2020, which was lower than the typical increase we have seen year to year in other years.”
The increase in interest in Golden Visas and CBI programmes came from market disruption brought on by the Covid-19 pandemic. The programmes are even growing in popularity among individuals in the mid- to high-income brackets, said Sebastian Michael, Director of Uno Capital.
“The investment migration industry has grown globally from $2.9 billion in 2011 to $21.4 billion in 2022, and we are happy to receive more inquiries year-on-year,” said Mimoun A. Assraoui, RIF Trust’s CEO and Latitude Group’s vicechairman.
Pandemic a catalyst
“In the past three years, we have noticed that inquiries are increasing steadily a minimum of 23 per cent year on year,” said Assraoui.
“The pandemic has been a catalyst pushing people towards getting a second passport. It pushed the trend for people to look at options and explore various programmes,” said Michael. Pre-pandemic CBI programmes were considered an option only for the ultra-rich. However, that is not the case anymore.
Immigration consultants are also seeing a rising trend of UAE residents using their second citizenship as a ‘security blanket’. “Many continue to live in the UAE even after they’ve received a second passport,” Michael said.
Lizzie Edwards, Marketing Manager of LA Vida Golden Visas, said: “The UAE has always been a large market for us, but our clients from UAE have doubled since 2019. We typically see an increase in demand for Golden Visas when geopolitical issues arise, as uncertainty increases the requirement/desire for a ‘plan B’ residency or passport.”
Rush for talent
Philippe Amarante, Managing Partner and Head of Henley and Partners Private Clients in Dubai and Pakistan, said, “More and more countries are also launching their programmes to welcome talent into their nations.”
Second citizenship
The demand for residency and citizenship programmes continues to grow among UAE’s residents, said Assraoui. “Wealthy individuals from countries such as Nigeria, Syria, Iraq, Lebanon, Yemen and Egypt are increasingly exploring Residency and CBI programmes to secure their family’s future with a modern day Plan B,” he said.
The US Golden Visa appears to be expensive upon first glance. The Investment amount is $800,000 locked in for five years. However, investors would be eligible to receive those funds back after about a five or six year period.”
Shai Zamanian | US licensed lawyer, EB-5 expert and Director of The American Legal Center
Citizenship by investment plans have been growing in demand on a yearon-year basis postpandemic. And this is despite talks of a looming recession and other global headwinds.”
Preeya Malik | Director of Step Global