What you need to qualify for a UAE property visa

I currently live in New Delhi and have been told by a major Dubai property developer that if we invest in property worth Dh1 million, we can obtain a family residency and then we can live there and work. This residency gets renewed every three years, as t

It is worrying that a major company is providing their potential customers with misleading information. While it can be possible to obtain a residency visa based on property ownership the rules are strict, there are no guarantees and such visas absolutely do not permit a person to undertake any form of employment in the UAE.

To obtain a property related residency visa, a person cannot have an outstanding mortgage of more than 50 per cent of the purchase price and must have paid at least Dh1 million for it. They must have an income of at least Dh10,000 per month from a verifiable source, but not from employment in the UAE. Any application must be made to the Dubai Economic Department and Dubai Land Department for consideration and visas are granted on a case-by-case basis and approval is by no means automatic. Visas are issued for two years under the current rules but these change from time to time. In accordance with standard Dubai rules, applicants must undergo a medical examination and must organise their own Dubai Health Authority-compliant medical insurance. I would reiterate that a property-related visa does not permit an individual to work in the UAE, only to reside here, so if they take up employment the property visa must be cancelled. My company has not paid us our April and May salary yet. This firm comprises over 4,000 staff and, to fulfil the Wages Protection System requirement, they cover 80 per cent of the staff’s basic salary – that mainly covers the low salaried employees. That too is only the basic salary; no allowances or overtime are paid. What legal action should we take in such a scenario? We have no information as to when the pending salaries will be released. HM, Dubai It is really not fair for a company to not pay employees in a timely manner. The WPS, which was introduced in 2009, is an electronic wages transfer system which permits the Ministry of Human Resources and Emiratisation to monitor the payment of wages and identify and penalise companies that do not meet their obligations. In October 2016, this was backed up by a ministerial decree. The provisions of this decree include the following: “An employer shall be deemed as late in paying wages if the wage is not paid to the employee within 10 days of the due date; and an employer shall be deemed as refusing to pay wages if the wage is not paid to the employee within one month of the due date (unless a shorter term is provided for in the contract).This decree sets out rules that are much stricter than before and there will be far stiffer consequences for employers who do not pay their staff within 10 days of the due date. A company will initially receive a warning, then they will not be granted any new visas, and the ministry can even use the employer’s bank guarantee. In such cases it is important the employees contact the ministry to advise them of delays. Employees can go to their local labour office or call the helpline, 800 665. I have a question on an agreement for indebtedness. Recently my brother divorced and agreed to pay Dh200,000 to his ex-wife. He then lost his job and went back to India. He is facing a financial crisis and has promised to settle soon. Now I am being threatened by his ex-wife that she will take legal action against me if he delays repayment. My question is whether I am liable for his default. Although we are blood related, I am no way involved in the money he borrowed. As per UAE law, can the defendant take legal action against a person who is not involved in a debt agreement? Also can I take legal action against her if she troubles me? AS, Dubai The agreement that AS’s brother has with his ex-wife is a private arrangement and is not the legal responsibility of any third party, even if they are a close relation. This would only be the case if the person was a joint signatory or a guarantor on a debt or agreement. In theory, if AS is genuinely being harassed he could make a police case for it but there would have to be strong grounds for this and there is little to be gained by such action.

Keren Bobker is an independent financial adviser and senior partner with Holborn Assets in Dubai, with over 20 years’ experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @ FinancialUAE

The advice provided in our columns does not constitute legal advice and is provided for information only