HOME FROM HOME: HOW NEW VISA RULES CHANGED THE GAME FOR UAE RESIDENTS
▶ Experts tell Alice Haine why this year the Emirates transformed from a short-term posting to long-term prospect
Business owners are keen to apply for the UAE’s five and 10-year residence visas when they come into force, as the country tries to shift from a transient posting for residents and employees to a long-term home.
Natasha Hatherall, the founder of the PR agency Tish Tash, says a long-term visa would make her “feel more secure and confident in living in the UAE” after investing so much “time, money and love in the country”.
“I’ve lived in the UAE for nine years and had my own business for seven years. My husband has lived here for 18 years and had his own business for over 10 years. Our lives are here, we own our own home here, so having a longer-term visa is the next natural step for us,” says Ms Hatherall, from the UK.
“This would give us some more security and peace of mind.”
Investors, entrepreneurs, executives, outstanding students, retirees and specialists working in medicine, science or research will be entitled to stay in the country for up to 10 years as part of the plan, which was approved by the UAE Cabinet in May.
The Government wants key professionals to stay in the Emirates longer to make the country competitive as it looks to shift to a knowledge-based economy and away from relying on the oil and gas sector.
Sara Khoja, a partner in the employment team at law firm Clyde & Co in Dubai, says the 10-year visa is “a significant development” as it gives people a chance to establish themselves here and will see the Emirates evolve from a destination to move to for two or three years.
“This has already started to happen, with more and more individuals staying for five years and more, as the UAE has provided a stable and safe environment for individuals to work and base their larger corporate operations from. The availability of more long-term options will enhance this position,” Ms Khoja adds.
Entrepreneur Orkhan Mustafayev, the president of Ideal Concept Holding, a group of companies in construction, retail, advertising and fast-moving consumer goods, moved to Dubai in 2006 to study at the American University in Dubai.
He says he would “love to apply”.
“It would help me plan for a further 10 years, especially as my children are getting older and their studies are a priority. My wife and I don’t want to disrupt their studies by moving country,” says Mr Mustafayev, from Azerbaijan.
“[When I first moved here], I remember visas being a long process, requiring regular renewals, and being costly once my studies were over. A 10-year visa gives assurance and stability, particularly for business owners like myself, who bind themselves to the UAE.”
ServiceMarket.com, an online home services marketplace, says the main purpose of long-terms visas is to boost business growth in the country.
The company believes this will be achieved by driving more investment into the economy as investors stay longer. The measure will help add to banks’ coffers because retirement savings will not be transferred overseas and boost the knowledge economy with a “brain gain” from the visas offered to specialists and outstanding students.
“We’re likely to see more initiatives like the recently launched UAE Platform for Scientific Laboratories, Emirates Smart Data Centre, a large-scale Artificial Intelligence platform and Mohammed Bin Rashid Space Centre in the years to come,” says Obed Suhail of ServiceMarket.
Ms Khoja says the visas for investors and entrepreneurs would potentially attract more high-net-worth individuals to base themselves in the UAE and to run their business operations.
“For those with specialist skills, it will provide more security to establish long-term careers in the UAE and potentially encourage more businesses to base specialists in the region and build up their corporate hubs for the Middle East and Africa,” she says.
As well as business owners, Ms Khoja says the UAE’s profile has increased globally making it a more attractive place for individuals to work and live – something that will make “the local labour market more competitive”.
Rasheda Khatun Khan, a wealth and wellness planner and the founder of Design Your Life, says retaining talent in the UAE requires “forethought and strategy”.
“This starts with the foundations of a company and its culture in taking care of employees. If companies now have a longer-term approach to their businesses here, I think it will have a knock-on effect on longer-term retention,” she says.
However, David Mackenzie, the managing director of the GCC recruitment consultancy Mackenzie Jones, says the type of companies based in the Emirates has changed over the past four years.
“Dubai was often seen as the head office hub for the wider GCC and Africa, but this has changed with a lot of the senior shared office functions (HR, finance, marketing etc) now moving to cheaper jurisdictions,” he says.
As the UAE market starts to expand again, the past’s proven success of attracting senior talent is more challenging moving forward with the allure of Singapore and Europe, two markets that are starting to retain their talent, Mr Mackenzie says.
“The UAE has lost none of its appeal but a considerable number of senior people either left, lost their jobs or were relocated,” he adds.
This means recruiters are looking to hire “a different type of person these days … gone are the families with two kids and the dog. Now we are bringing in either single or young families who don’t initially have the burden of school fees,” Mr Mackenzie says.
That trend could change again, says Abdul Faizal, co-founder of real estate crowdfunding platform, Smart Crowd, once the long-term visas come into play.
“As the visa has many conditions, for certain individuals the UAE will always be a transitional post. However, for other individuals especially expat families, it will lose that tag line of a transitional posting and move to a mid- to longterm posting of 10 to 15 years,” he says.
One sector certainly set to benefit is real estate, as some visas allow for a certain holding of property to qualify.
“This will create new demand in the market as international investors will see the UAE as an attractive option to invest as it provides long-term residency and will put it on par to other countries that offer residency like St Kitts and Nevis and Portugal,” says Mr Faizal.
While the signs are positive, Ms Khoja say it will take time for expatriates to adopt a “long-term approach” to the UAE.
“This will gradually happen as these visas begin to be granted. However, it won’t be immediate and it will likely require people to see how the visas work in practice,” she says.
Ms Hatherall, for example, is concerned about the costs involved.
“Some of the figures I heard being rumoured were quite high and that may mean it’s not possible for me,” she says.
Analysts point out that the long-term options have certain limitations.
“The reality behind the 10year visa means you are still tied to your employer,” says Mr Mackenzie.
And while the visa shows “the UAE is listening and looking at alternative solutions” to attract new residents, he does not believe it will alter their longterm view.
“People are more focused on the cost of living here and the stability of their current roles. Will it bring more people here? Unlikely, as people look for the combination of salary, quality of living and family life,” he says.
Keren Bobker, a partner with financial advisory Holborn Assets, agrees: “I don’t think these visas will make a difference to the average expat who moves to the UAE and is sponsored by an employer. They seem to be aimed at those looking to set up businesses, and larger businesses at that, to encourage their commitment to stay for an extended period.”
Investors, entrepreneurs, executives, outstanding students, retirees will be entitled to stay in the country for up to 10 years