According to The National, a leading newspaper based in Abu Dhabi, 2018 was the ‘year of reform’ in the United Arab Emirates (UAE), with, among other initiatives, the Government announcing plans to offer longer term visas to key professionals in a move to increase the number of residents choosing to settle and invest in the country. The pace of policy change certainly did not slow down in 2019.

On 5 July 2019, the Ministry of Economy issued the Positive List, which is expected to change the foreign investment landscape in the UAE. The list sums up all relevant economic activities and sectors in which foreign investors will be able to invest up to 100 per cent in UAE mainland companies. It is of particular interest to those who wish to invest in a controlling majority in UAE onshore companies, or to foreign investors looking to restructure their existing shareholding arrangements in order to own a controlling majority, if not all the shares, in UAE onshore companies.

The expectation is that foreign investors will find the UAE a more appealing investment hub as a result, particularly as we approach Expo 2020 Dubai. 

Expo itself represents another considerable catalyst for growth, welcoming talented professionals from across the world. 25 million visitors are expected to attend the event, helping with forming and nurturing business relationships and adding to the economic vigour of the nation, with the GDP expected to grow accordingly.

The event will also consolidate Dubai’s reputation as a global hub for tourism and business, setting strong fundamentals for long-term growth. To help boost the economy, the Government’s budget for the 2020 fiscal year plans an expenditure increase of 17 per cent to Dh66.4 billion ($18 billion), the highest level in Dubai’s history. The Government projects that its revenues in 2020 will reach Dh64 billion, a year-on-year increase of 25 per cent.

At the start of September 2019, the Prime Minister and Ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, announced that a higher committee for real estate, headed by HH Deputy Ruler Sheikh Maktoum bin Mohammed and senior property developers, would be formed to help strike a balance between supply and demand in the UAE’s real estate sector. Among others, the body will aim to avoid the duplication of projects and guarantee that they add value to the economy.

In addition, the higher committee’s role is to ensure that semi-governmental real estate companies do not compete with the private sector and that over the next decade, a strategic comprehensive plan will be developed for all property projects in Dubai.

The arrival of the five or 10-year visas for eligible entrepreneurs, investors, professionals and executives in 2019 is expected to have a particularly big impact on the property sector. Gold Card holders are allowed to stay out of the UAE for longer than six months – something that other residents cannot do without risk of losing residency. On 6 January 2020, the Government announced that visit visas in the UAE will be issued for five years. Previously, these visas were only valid for 30 to 90 days. Some experts say the new visas are in line with the Green Card in the US and permanent residency in Australia or Singapore. 

These initiatives help the expat community to think and plan with a longer term perspective, to stay in the UAE permanently and also attract overseas investors and clients.

Further information

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