UAE's 'Green Visa' to drive economic growth
The Green Visa will boost the real estate market, increase business, job creation and result in a rise in consumer spending.
The launch of a ‘Green Visa’ scheme in the UAE will “boost the real estate market, increase business, job creation and result in a rise in consumer spending”, according to a leading business expert.
The new class of visas announced in a further move by the country to attract talent and boost economic growth.
The new ‘Green Visas’ will allow expatriates to apply for work without being sponsored by an employer, and include children up to the age of 25 on their permits. The government also said it will allow people who’ve lost their jobs to remain in the country for up to 180 days, a major boost as most visas are tied to employment contracts.
Green Visas Involve:
Sponsorship of young people until the age of 25 instead of 18
Extending the grace period for leaving the country upon job loss or retirement to 90-180 days instead of 30.
Sponsorship of parents
Scott Cairns, founder and managing director of Dubai-based Creation Business Consultants, told Arabian Business: “From an individual stance the ability to sponsor parents, spouse, dependents and male dependents visas until the age of 25 years (previously male dependent visa sponsorship was restricted to the age of 18 years) brings with it much-needed flexibility for family visa sponsorship support.
“Combined with better quality of life projects e.g. Dubai 2040, this will appeal to a top pool of talent and their families, encouraging them to call the UAE their home.
“The Green Visa will boost the real estate market, increase business, job creation and result in a rise in consumer spending. Such changes come amidst the ongoing competitive economic rivalry with Saudi Arabia, with both jostling to be the leading regional business hub.”
The UAE has been experiencing increased competition from neighbouring Saudi Arabia, whose Crown Prince Mohammed Bin Salman announced earlier this year that companies looking to win government contracts in the kingdom had to be based in its capital Riyadh from 2024.
Foreign residents make up more than 80 percent of the population of the UAE’s seven sheikhdoms and have been a mainstay of the economy for decades. Oil-rich Gulf states have been forced to consider longer residency for foreigners as they seek to attract investment and diversify.
"The announcements for widows, divorcees and teenagers are likely to garner a lot of goodwill for the nation from within and outside, said Jarrett Preston, chief executive officer, IDONEUS.
"This is likely to have a ripple in the pond effect across industries, especially individuals and entrepreneurs in blockchain and cryptocurrency."
Sunday also saw the launch of the federal freelancers’ visa for self-employed workers based in the UAE and overseas in specialised fields such as artificial intelligence, Blockchain and digital currencies.
“The fuel for any economy is the human capital,” UAE Economy Minister Abdulla bin Touq said in an interview with Bloomberg Television. He said authorities understood that someone losing their job shouldn’t immediately have to leave.
The flexibility afforded by the new visas will provide much-needed stability for young people looking to call the UAE home.
This gives young adults more time in the UAE to advance into a career here rather than a country overseas and removes the urgency which could lead to a longer stay in the future.
I expect this will have a very positive effect on Dubai's property market. The market is already stabilising and maturing, with these additions brought in by UAE leadership, it creates a home from home for ex-pats and encourages professionals to lay roots in the country rather than see Dubai as a temporary measure.
While Sonal Bisht, head of communications EMEA, Poly, added: "This move should greatly benefit the real estate sector while once again positioning UAE as an attractive base for potential globetrotters. This also augurs well for professionals in other industries too such as technology, sports and scientists."
The announcement on Sunday formed part of the UAE’s ‘Projects of the 50’ campaign, to chart the strategic roadmap for the country’s new era of economic, political and social growth.
The raft of launches included plans to deepen its trade ties in fast-growing economies in Asia and Africa, and draw $150 billion in foreign investment from mainly older partners to reposition itself as a global hub for business and finance.
Scott Livermore, ICAEW economic advisor and chief economist at Oxford Economics, told Arabian Business: “This wave of policies is a continuation of measures announced over the past year and further demonstrates the UAE’s commitment to an open and inclusive growth agenda.
“It further enhances the UAE’s standing. Given the progress the UAE has made, it is less about seismic developments that shock and more about continuous enhancement aimed to improve the business and social environment.
“These announcements reaffirm the direction the country has clearly set out over the past year.”
They have also been timed with just under a month to go before the eagerly-awaited opening of Expo 2020 Dubai – the six-month global showcase that is expected to welcome 25 million visits over the course of the event.
“The Expo will be visited by people across the globe and any strategic programs implemented as a part of the 50 projects that may entice young talents and investors, will invite young minds to set base in the country,” said Bal Krishen, chairman and CEO, Century Financial.
Other specific regulatory changes include:
Extension of business trip permits from three months to six months
Sponsorship of parents under the visa of direct family members
One-year residency extension for humanitarian cases
Extension of children’s age limit on parents’ residency from 18 to 25 years
Extension of grace period upon job loss or retirement to 90-180 days