The UAE’s newly announced long-term residency Golden Visas and Green Visas, which are aimed at attracting and retaining global talent and skilled workers, will boost residents’ savings goals and encourage increased spending locally, personal finance experts have said.
“Furthermore, since all foreign residents would like to unlock the Golden Visa criteria, they will choose to save more to receive residency permits for longer-term periods.”
Golden Visa recipients will have the stability to put down roots in the UAE and this will enable them to make long-term plans and goals, says Rupert Connor, partner at Abacus Financial Consultants.
“People may now plan to save to buy property in the UAE as opposed to buying property in their home countries,” he says. “They will also think about the UAE as a place to retire and save more.”
Residents across different age groups are initiating discussions with their respective wealth managers to start looking at portfolios and retirement income to suit their current living standards in the UAE, says Sharad Nair, vice chairman of Abalone Capital and group board adviser.
“The government has strategically retained a large chunk of capital that could have left the shores of the UAE in the future. This was done when residents were completing their 25 to 30 years’ lifecycle in the UAE,” Mr Nair says.
People who want to live in the UAE for the long term will be able to receive a Golden Residence visa for 10 years with a property worth Dh2 million.
The new regulations allow the property to be mortgaged, so with a loan-to-value of 75 per cent, a Golden Visa could be yours if you can save Dh500,000 for a property deposit, says Steve Cronin, founder of DeadSimpleSaving.com.
“With a clear savings goal to work towards, people are less likely to spend their money on unnecessary items that will further delay their dream of long-term residency."
This would enable the mass affluent to obtain a Golden Visa and not only high-net-worth individuals (HNWIs), says Ramzi Khleif, general manager of digital wealth manager StashAway Mena.
Stars who have received a UAE Golden Visa
“The new visa rules, including ones announced earlier for retirees, create a greater sense of reliability for residents to increase their savings corpus in the UAE where they believe they will spend most of the time going forward, including for their retirement,” says Vikas Arora, chief executive of UAE-based strategic and financial consulting firm CXO Factor.
Meanwhile, the new rules will the change the entire dynamics of business and trade in the UAE, says Ali Rao, chief executive of investment conglomerate Elixir Group.
“The liberal visa terms and threshold criteria have been introduced to encourage investment in the country,” he says.
“With more time to spend in the country, lesser investment amounts, more banking access and availability of off-plan properties, the changes touch multiple sectors such as banking, tourism and real estate. It is the perfect boost in confidence an investor needs from authorities while establishing a business or participating in commercial activities in the UAE.”Source: