The UAE has long been a promising business destination for foreign investors and entrepreneurs. With progressive laws and regulations that promote a business-friendly economy, it’s no surprise that people from all over the world travel to the region to take advantage of their business market. And things are only beginning to heat up! Recent visa reforms are predicted to heavily impact Foreign Direct Investments (FDI) in the Emirates. These reforms will encourage travel and economic activities and are expected to draw many talented, skilled, and educated individuals to the UAE.
These new regulations seek to expand the approval criteria and update the rules for several different visa types. And while the UAE government has long fostered a strong economy, this recent push is a significant upgrade that seeks to expand and diversify the economy with foreign talent and investments. In recent years, the effects of the pandemic have had far-reaching implications on all nations and their economies.
Visa Amendments: What’s Changed?
The UAE’s updated visa regulations are in place to provide a greater sense of security for potential foreign investors. By offering more flexibility, entrepreneurs will feel more secure about moving to the region, even if employment situations change. But what are the exact details of these changes?
1. Golden Visa Changes
With the most substantial changes, the 10-year Golden Visa grants UAE residency to investors, entrepreneurs, and a number of skilled and talented professionals. Under new regulations, maximum duration restrictions have been lifted, allowing your visa to remain valid even when out of the UAE.
• Applicants must now hold a valid employment contract within the UAE. This contract must be classified within the first or second occupational level as defined by the relevant authorities.
• Minimum salary requirements have decreased from Dh50,000 to Dh30,000.
• Golden residences are now expanded, allowing off-plan properties to be purchased from valid local real estate services.
• Golden residence visas allow a property to be purchased via a loan as long as it comes from a specific banking institution.
2. Green Visa Changes
A green visa allows residency for five years without the need for an employer or sponsor. Holders can bring family members along, but their timeframe is limited to two years. However, these sweeping regulatory reforms have changed this fact.
• Green visas are now updated to allow sponsored family members to stay for a full 5-years instead of the two.
3. Visitor’s Visa Changes
Under the 2022 reforms, visitor visas will see some changes for increased flexibility. These include:
• Under the new set of rules, this model has increased from 30 days to a full 60 days to allow visitors more options.
• New job exploration visas will be offered to skilled and talented individuals and will not require sponsorship. This will give prospective visitors the chance to find the right direction for their education and skillset.
4. Other Changes
Golden and green visas aren’t the only regulations to see updates. Other visa changes include the creation of a 5-year multi-entry tourist visa and family sponsorship packages that permit children 25 and under to enter the region.
The Benefits of UAE’s Reforms
It’s no surprise that the UAE stands on the cutting edge of business development. For years, government authorities have guided and adjusted business and tax regulations to support businesses and owners. Recent changes to these guidelines are expected to:
1. Increase Tourism
The UAE is a worldwide tourist attraction, and improving business benefits will only serve to energize an already potent tourism industry.
2. Attract Global Talent
A significant factor in the UAE’s success is developing skilled and educated residents. By making sweeping updates to visa regulations, more talented and experienced prospects will venture to the region for business.
3. Fewer Entry Barriers
While the UAE immigration system is one of the most relaxed in the world, there are still factors that can be prohibitive to potential investors and residents. But by eliminating much of this red tape, more individuals will be free to enter the region and conduct business.
4. Job Creations
Having business-friendly regulations will entice potential investors to enter the region to conduct business, increasing the presence of jobs and business potential.
5. Sustainable Economic Growth
A big part of building one of the largest global trading hubs in the world involves developing a system for sustainable economic growth. More investors will operate in the region by implementing measures that make conducting business in the area more straightforward and financially efficient. By combining this with a well-maintained infrastructure and a skilled workforce, the UAE has a solid plan to grow its economy.
UAE Business Reforms: How They’ll Help Long-Term
Since the onset of the pandemic, the UAE has made numerous efforts to change and update policies to become one of the top 10 global FDI regions by 2030. Let’s take a deeper dive into how that might work:
1. Improving Overall FDI
Covid 19 had a devastating effect on the UAE. In addition to shuttering brick and mortar establishments, the region saw a swift decline in foreign investments. The expansion and reform of regulations hope to renew vigor in the minds of potential entrepreneurs and foster an increased presence of investors from other nations.
2. Future-Proof the Job Market
Not only are the 2022 reforms meant to make it easier for investors and businesses to operate in the UAE, but it also serves as a way to permanently bolster the job market moving forward.
Start Your Business in the UAE
With a constantly evolving economy that’s been supercharged by expansive regulatory changes, it’s safe to say there has never been a better time to form your business in the UAE. If you’ve pondered creating a company in Dubai’s offshore, mainland, or one of the many Free Zones, you’ve come to the right place. While many new investors pick the UAE due to its straightforward business formation process, many foreign entrepreneurs consider hiring a third-party business setup consultant to help navigate the terrain.
Business consultant experts, like those at MSZ, are highly experienced in handling business affairs in the Emirates. From company formation to visa renewal services in the UAE, these consultants can help your business manage necessary paperwork, process important renewals, and stay ahead of any potential regulatory changes in the future.
MSZ Can Help You and Your Business Succeed
It doesn’t matter whether you’re a new foreign investor moving to the region to form a business or you’re an established company that’s founding branch offices, MSZ Consultancy has the expertise to help you succeed. Our skilled business experts are dedicated to assisting your company and minimizing the red tape. We have years of experience in handling visa renewals in Dubai, business license applications, establishing legal structures, office rentals, and much more. By liberating yourself from managing the day-to-day minutiae, you’ll be free to focus on the parts of your business that matter the most to you.
So, if you’ve been thinking about establishing a business in the UAE, we can help. Give us a call today at +971 52 544 1248 and supercharge your business potential with MSZ Consultancy.