Recently in the UAE, there has been a welcome change in the VISA rules which has encouraged more entrepreneurs and foreign investors to arrive in the UAE and start their business. Sheikh Mohammed bin Rashid, the Vice President and Prime Minister and Ruler of Dubai has clearly stated that the major reason to bring such changes to the existing regulations is to attract more foreign investors and businesses and exceptional talents to UAE. This will help to create a more tolerant environment, promote better infrastructure all over UAE and make the process of Company Setup in Dubai much easier.
The major change that has been implemented in the new VISA regulations is the change in the duration of the visa time frame. Earlier every individual was eligible to select a maximum of Five-year residency visa. But the Sheikh announced that this rule will be discarded and some categories of individuals will be able to apply for a long time residency VISA for 10 years as well from now. This longer-term VISA is available only to the people belonging to medical, scientific, research and technical fields along with their families as well.
Another brilliant announcement that the Sheikh has confirmed is from now the investors and business owners will be able to own 100% of their UAE based ventures and businesses without any government restrictions. Currently, every business owner needs to have an Emirati partner and hand him 51% of the business in mainland cities. However, if the company is conducting a Free Zone Business then they are already eligible for 100% ownership. This new announcement of 100% ownership even in the mainland business areas, will encourage more investors to come in and launch their business in the UAE.
Side Effects of the New VISA Regulations
Even though the positive aspects of the new VISA regulations are more attractive, there are certainly some negative consequences of them as well. Here are some side effects which can be seen across UAE as soon as the new VISA regulations will be implemented.
● Even though the residential sector will receive a huge boost thanks to the 10 years of residence VISA, this will seriously affect the demographic graph of the country. At present, there are roughly 10-11% UAE inhabitants in the country and with more foreigners flocking in UAE it will drastically reduce the amount further.
● With an increased population, the government will need to expand the residential space and amenities so that the citizens can sustain their livelihood. If they are unable to do so there will be significant unemployment, lack of schools and other important commodities.
The new changes in the VISA regulations will significantly help the businessmen and entrepreneurs to set up their business in UAE. But an increase in the number of people will also need to be tackled properly so that there are no negative side effects of the changes that have been announced and will be implemented shortly.