UAE’s Plan to Boost Investment – The “Golden Card”
After most of the Gulf’s stock markets became accessible to foreign direct investment, they were upgraded to ‘emerging market’ status; this helped them in getting more sizeable investments. Some of these gulf emerging markets have made moves to attract even more foreign capital, high-end technical expertise and advanced technology.
An example of this, is how the UAE and KSA both have taken major steps to offer a stable environment to international investors by offering privilege and long term residency schemes. This allows the investors as well as their families to enjoy a secured stay in the countries.
According to the report by the International Monetary Fund (IMF), GCC countries have seen a significant outflow of remittances in the last decade which is around $120 billion in 2018. Despite the flexible investment systems, some analysts have considered GCC economics to be very competitive when it comes to attracting foreign investment. Why was that? Because before there were restrictions on the movement and settlement of these investors who ended up finding more favorable opportunities in other locations and that affected the balance of payments and size of GNP of Gulf states.
Therefore, UAE’s cabinet approved to give permanent residency in the form of “Golden Card” to more than 6500 investors with a total investment of Dh100 billion, to help them stay longer in the UAE and keep their investments. This move will definitely attract large investments and also positively contribute to the economic environment of the UAE.
You may wonder how the terms of this long term residency contributed to improving Dubai business and Dubai investment? It offers 5-10 year visas to investors, entrepreneurs and people of special talents. They no longer need to have sponsors to give them permits to stay in the UAE and will have 100% ownership of their businesses. This is really encouraging for the investors and entrepreneurs to now permanently stay in the UAE and expand their businesses without relying on the local sponsors – which was seen as a hindrance or a disadvantage before. The investors can also call in their families now in UAE to settle and create a future.