Localization of investment, just like its attraction, needs encouragement from the government and procedural facilitation for the State entry, residency and domestic and livelihood stability. Amidst the global and local competition over the attraction of capitals, localization of investment became a concern that haunts many countries in the last few years for being one of the strongest factors of activating business environment and economic cycle in general.
After the recent global financial crisis, we are now following a marketing race among investment encouraging entities in a number of world continents to attract investors by localizing their works in business projects in exchange for residency, taxes and fees facilitations. We noticed that the real estate crisis that swept most of the world was a key driver for that; for example, owning an apartment in Spain, Portugal or Latvia with a specific price limit gives the landlord an EU residency and exempts him/her from any complications related to the Schengen complications with freedom of movement between EU countries.
The “Golden Residency”, launched by ICA few days ago does not need any sponsor and presents direct solutions for the status of investors residing in UAE for years. It also provides solutions for many others whom UAE is trying to attract towards local investment and benefit from its durability, opportunities and attracting commercial returns. This kind of residency targets around 7K investors residing inside UAE who’re eligible for a renewable “Golden Residency” for a period of 5 to10 years according to the volume of their capital. In addition, the country seeks to provide an investment friendly environment.
The “Golden Residency” is not just a response to the status of the real estate market in UAE and the region, however, it attempts to motivate investors to establish companies, enter into new business partnerships or invest in bank deposits and the like. It is noted that the Cabinet reduced the residency of investors in property to 5 years, while investing in other sectors grants a renewable 10-year residency, on the condition that the investment in property is not less than 60%.
Besides, UAE grants the individuals with talents, innovative ideas and specific skills a 5-year residency without a sponsor provided that they own an already established and successful project with a minimum value of AED500. All of that covers many of the aspects that increase UAE competitiveness and test the efficacy of UAE attractiveness.
We are waiting for more smart well-studied facilitations to stimulate investments in monies and qualifications in UAE. We already have the privilege of being the top of the most favored countries to live-in in the Arab World for eight years.