The high net-worth individuals of India and other Asian countries are applying for the UAE Golden visas on a massive scale. The demand for these visas has picked up exponentially ever since European countries imposed restrictions on the issuance of these Golden Visas to non-residents.
These restrictions have not only added to the cost of obtaining a Golden visa from the European counterparts but have also made the process difficult and arduous. As a result, people are now turning towards the UAE in order to tap overseas opportunities.
The European jurisdictions have tightened their visa programs in order to phase out the available relaxations step by step. In addition, these nations have revamped and revised their real estate investment rules applicable to citizens and non-citizens so as to develop a friendly and favorable orientation towards the citizens as against the investors from other countries.
A statement was released by the Secretary of the European Commission stating that such changes are necessary to control the soaring property rates in the Union.
The Golden Visa Programme of the UAE is truly a Golden opportunity for the overseas investors
The country of UAE has always been a friendly destination to invest in. The government of this country has launched numerous initiatives and programs thereby exhorting domestic and overseas investors to invest.
Over the years, the UAE has emerged to be the largest recipient of foreign direct and indirect investment.
The real estate sector in Dubai has been the most prominent shareholder of this foreign investment. Around 56.8% of international currency received through foreign investment was invested in the properties and other ongoing township projects.
In order to build a sustainable ecosystem of investment, Dubai recently introduced its Golden Visa Programme. This program is an additional incentive for overseas investors to come forward and invest in Dubai. In exchange for this investment, the UAE not only offers profitable returns in a short span but also at the same time offers a limited residency.
The country has also enacted rules for certainty and consistency in implementation. According to the present rules, a high-net-worth individual is awarded a 10-year residency visa if he invests more than AED 2 million in Dubai in a given financial year. That is why it is an attractive option for investors to multiply their returns.
The demand for the UAE Golden visa was already high till 2022 but however, it has almost doubled in the last quarter. According to Realiste, a real estate company in Dubai, the number of middle Asian and especially Indian investors has drastically increased.
The amount of the funds pooled in an investment vehicle had also been enhanced considerably. This may be due to the availability of liquid funds with the investors as they no longer can invest in European countries.
Another reason for this growth in forex can be attributed to the declining value of currencies such as the Indian rupee and the like against the Dollar. Therefore, investors seek to protect the inherent value of the currency.
The scheme to exchange residency for investment is a unique trend that benefits not only the UAE but also the investors in many ways. The UAE offers a residency visa for a minimum duration of 10 years in exchange for just AED 2 million of investment. This boosts foreign exchange funds, which promotes development.
On the other hand, the investor obtains innumerable benefits in the form of profitable returns, an opportunity to reside and work in Dubai, and most importantly tax benefits in the home country. This deal is actually beneficial to drive growth at both ends.
The European countries on the other hand have withdrawn most of these Golden Visa Programmes. The basic reason behind this has to be to stabilize the property rates and prioritize domestic ownership in real estate.
It has become difficult for investors to avail the benefits of the European golden Visa programs in light of these exigencies. Therefore, the investors have finally turned to the Golden Visa of Dubai for making their investments.
It is worth mentioning that Dubai and UAE have no such tendency to roll back the golden visa program like their European counterparts. Instead, it has planned to improve the program in order to promise great results.
After this disclosure, the residential market of Dubai has witnessed an increase in demand from 39% to 68.7%. This has been an incredible achievement for Dubai as it will end up increasing the domestic product and employment opportunities. All of these factors are working in Dubai’s favor and it is definitely a big win for the country.