Long term impact of Golden Visa on Dubai economy
The Government of UAE had been taking various progressive steps over the last few years that could take the country toward its long term Centennial Plan 2071. So it is no wonder that they had sought to look into their visa policies as well. Till now Visa in UAE was based on employment and for fixed periods of time or one could be sponsored by someone who already holds a valid employment Visa if all the other requirements are fulfilled. But the fixed short duration of these Visas meant that despite Dubai boasting 92.05% expat population, no one was able to put down roots here and subsequently no one was willing to invest more than necessary that would add to Dubai’s economy.
Keeping this in mind, the Visa policy is being made more flexible in the recent past. The Golden Visa is to allow long-term residency for certain businessmen/ investors, professionals and students without any national sponsors. Following are few facts about the Golden Visa and how it impacts the economy of Dubai:
- The Golden Visa would allow the holder to reside in UAE for 10 years.
- It was launched in June 2019 when it was issued to 6800 professionals and investors from 70 countries who help approximately 100 billion AED worth of assets in UAE.
- The first categories who were made eligible to be issued the Golden Visa were Doctors, Doctorate degree (PhD) holders, engineers (specialized in electronic, electrical, Artificial Intelligence, computers, programming), epidemiologists, virologists and top graduate students from approved universities along with their families.
- Primarily when it was launched, the Golden Visa was expected to revive only Real Estate but it surely has a long term positive impact on the overall economy.
- The plan is to make the Golden Visa available to various categories in different stages. According to Emirate’s Department of Economic Development, the more categories the Golden Visa would be extended to, the better would be the growth and productivity and consequently Dubai’s economy would grow.
- An analysis by Corporate Strategic Affairs Department in Dubai Economy, once the Golden Visa is extended to different categories in various stages as planned, Dubai’s economic growth rate should enhance by 0.25% to 1%.
- This estimate is based on the simple concept that one’s duration in a host country dictates their consumption and investment in that country. The longer one stays in a particular country, they choose to spend more instead of transferring cash abroad. This adds to Dubai’s and UAE’s economic growth.
- The Golden Visa attracts foreign investors and creative and talented people to come and live in Dubai. It also ensures that such skilled individuals do not leave the country any time soon. With family stability and a nurturing, stimulating environment, productivity increases. This is thus expected to hugely enhance economic development.
- It is anticipated that the Golden Visa would pave the way for new markets in various sectors like Real Estate, finance, etc.
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