Government has shown itself to be proactive by regional and international standards, says law firm
Dubai, UAE, 26 December, 2018: The UAE has moved ahead of other regional and overseas destinations in positioning itself as a hub for investment and international talent, say experts at STA Law Firm.
The introduction of a long-term visa system for investors, entrepreneurs, specialised talents, and researchers has been warmly received by business analysts, and STA says the initiative can deliver even broader long-term economic benefits than initially seen.
“The government has shown itself to be proactive by regional and international standards in tackling economic issues head on with resolve and strategic action,” said Sunil Thacker, Senior Partner at STA.
“The recent approval of the new long terms visa system underlines its ongoing commitment to make the UAE a pre-eminent destination for attracting investors and international talent.”
The new system means eligible investors will receive either a five or ten-year residency visa while qualifying entrepreneurs will be able to obtain a five-year residency visa with the added incentive of later being able to earn an investor visa.
Thacker sees the offer of long-term security for investors and entrepreneurs delivering a raft of economic benefits.
“A surge in private investors and entrepreneurs will supplement the UAE’s current workforce and help stabilise the economy,” he said. “The projected influx will help balance the outflow of funds remitted by expatriates, which amounted to AED164.3 billion in 2017, and ensure more money remains in the local economy.”
Thacker says the availability of long-term visas will help boost competitiveness within the UAE economy by shifting the focus from the reliance on oil and gas sectors to a knowledge-based economy.
“An open-door policy towards investors and entrepreneurs regarding longer visa periods in addition to the 100 per cent foreign company ownership reform will encourage further investment in the country,” he said.
“More business enhances competition which will drive companies to develop a leading edge in their specific sectors. This will create more business hubs, further reinforcing UAE status as a global business hub and leader for technology and innovation.
“There has already been a surge in confidence as a result of the Cabinet initiative, as reflected by the immediate growth in shares of Aldar Properties and DAMAC by one per cent, and we can expect more government initiatives to build on this momentum.”