The new rule allowing a 10 year residency visa and 100% ownership for foreign companies will boost heavy flow of foreign direct investment and also be extremely beneficial to the Property Market. Read below to find out the expected changes likely to come into play.
Dubai is an attractive destination for investors and professionals and the new rule has made investors/business professionals have gained more confidence over investing in Dubai. Dubai is a diverse global community which has established itself and the 10 year visa rule as well as 100% ownership will act as an impetus to the whole economy. Initially it was a short term visa where the visa was renewable very two year, some investors/professionals underwent a little apprehension because there is no long term tenure but new rule will generate an overall momentous impact. The population demographics of UAE will change dramatically, people use to come to Dubai to work and save then go back to their home country to retire, but now they will be able to work here and retire here as well. Families usually avoided bringing their older family members due to the two year visa stint but now since the long term visa rule is announced there will be older people and better educated professionals in the UAE demographics. The change in demographics will increase the demand of properties impacting real estate on a larger scale. Stable and sustainable demand of residential and commercial properties will be witnessed. The mainland companies in Dubai were given some ownership and also required to have a local partner who owns a 51 percent stake in the business, whereas the free zone companies were given 100 percent ownership, according to the new rule be it mainland or free zone both companies will be given a 100 percent ownership, new business start ups will emerge and existing business are likely to remain in Dubai for a longer period of time.
There will be a greater sense of belonging due to the semi permanency available now. A renewed confidence will be instilled within investors, end users and professionals due to long term clarity the new rule will offer. A greater sense of long term well being will develop strong communities in UAE. Developers and mortgage providers will grant smart mortgage packages because the visa tenure covers a longer period. A demand and supply balanced economy will emerge, there will be ups and down but with remarkable growth.