UAE’s Golden Visa

• IAS NEXT, Lucknow
• 27, Dec 2021

Reference News:-

Bollywood actor Tusshar Kapoor awarded Golden Visa.

• He joins a growing list of Indian movie stars, including Mohanlal and Shah Rukh Khan, who have received the coveted 10-year residency.

What is it?

In 2019, the United Arab Emirates (UAE) implemented a new system for long-term residence visas, thereby enabling foreigners to live, work and study in the UAE without the need of a national sponsor and with 100 per cent ownership of their business.

So, what does the Golden Visa offer?

The Golden Visa system essentially offers long-term residency (5 and 10 years) to people belonging to the following groups:

• investors, entrepreneurs, individuals with outstanding talents the likes of researchers, medical professionals and those within the scientific and knowledge fields, and remarkable students.

Eligibility requirements (Have a brief overview; need not mug up):

For investors:

• A deposit of at least AED (United Arab Emirates Dirham) 10 million worth of public investment, either in the form of an investment fund or a company.
• 60% of the total investment must not be in the form of real estate.
• The invested amount must not be loaned, or in case of assets, investors must assume full ownership.
• The investor must be able to retain the investment for a minimum of three years.
• May be extended to include business partners, providing that each partner contributes AED 10 million.
• Can also include the holder’s spouse and children, as well as one executive director and one advisor.

For individuals with specialized talents:

The category includes doctors, researchers, scientists, investors and artists. These individuals may be granted a 10-year visa following accreditations granted by their respective departments and fields. The visa also extends to their spouses and children.

Eligibility for a 5-year visa:

• The investor must invest in a property of a gross value of not less than AED 5 million.
• The amount invested in real estate must not be on loan basis.
• The property must be retained for at least three years.

Outstanding students:

• Outstanding students with a minimum grade of 95% in public and private secondary schools.
• University students within and outside the country having a distinction GPA of at least 3.75 upon graduation.

Reasons Behind the Move:

The UAE’s economy has been hit hard by the Covid-19 pandemic and low oil prices, prompting many expatriates to leave.

• The move intends to bring them back now and keep the “talented people and great minds” in the Gulf country and help in nation-building.
• It will attract talented professionals from various fields of expertise and further encourage innovation, creativity and applied research, adding to the appeal of a career in the UAE for the world’s brightest minds.

Significance for India:

• It would attract more Indian professionals and businessmen to the Gulf nation and strengthen the India-UAE Relations.
• It will also facilitate the return of Indians who want to resume work after the relaxation of Covid-19-related restrictions, for which India had requested the members of the Gulf Cooperation Council (GCC) in early November 2020.