Wednesday, Jun 29, 2011
Gulf News
Dubai: Foreign investors who own properties worth more than Dh1 million will be entitled to three-year multiple-entry visit visas, the UAE Cabinet said yesterday.
The government, which is keen to encourage more foreign investors to enter the UAEs property market, has raised the validity of visas from the present six months.
The decision was taken during a Cabinet meeting yesterday chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
Major General Nasser Bin Al Awadi Al Menhali, assistant undersecretary for naturalisation, residence and port affairs, confirmed the decision to Gulf News yesterday.
Investors who own property worth Dh1 million can get three-year multiple-entry visit visas. However, they have to exit the country every six months, Al Menhali said.
Pointing the benefit of this rule, he remarked: Our visa procedures for investors are exactly the same, but have been extended to three years, which gives more flexibility and ease of investor movements in and out of the UAE.
Real incentive
The decision will take effect immediately after the details are worked out and coordination is completed among government bodies and the naturalisation and residence departments in the country.
Sultan Butti Bin Mej-ren, Director General of the Dubai Land Department, said that the move will have a great impact on the real estate market.
This is the right decision at the right time, he said.
The decision will bring more strength to the market.
It is another government service to be added to the benefit of the real estate sector to serve the interests of investors.
Bin Mejren added that it is a service that every investor in any country needs.
It will be a real incentive for more investors to come and buy properties in the UAE.
I expect a 20 per cent increase in demand from people to buy property in the UAE. However, it will not lead to a rise in real estate prices.
Bin Mejren said that this move requires close cooperation between the Land Department and the Department of Residency and Foreigners Affairs.
We work closely with the Department of Residency and Foreigners Affairs, but it is always necessary to provide the correct documents and procedures.
Craig Plumb, Director of Reseach at Jones Lang Lasalle, told Gulf News: It is a very good decision which clarifies vague areas for real estate investors.
Most of the properties sold between 2007 and 2009 were sold on the promise that the owners would get three-year residence visas.
He said that in the past there were no clear or official rules and regulations in this regard when these properties were sold.
Earlier the government declared that there would be no three-year visa for the purchase of any property, and people who own properties in the UAE or invest in the real estate sector will not receive a residence visa for three years, he said.
But he added that the UAE Cabinets decision is clear evidence of the governments response to the market and investor needs.
The government brings clarity and certainty to replace the confusion that has been in the real estate market for the past years until today.
This decision will be very significant in attracting people to invest in the UAE or to buy property here.
Plumb said that the six-month visa is not enough to attract investors, but the three-year multiple-entry visa will bring in investors who had left the real estate market during the recession.
Primarily most real estate prices are still falling and this decision will help protect the market from further decline.
He also said that this decision might not increase prices, but it is certain to achieve stabilisation.
On the other hand, Plumb remarked that there should be no minimum property investment in order to get a three-year visa.
The coming days will make the rules and regulations clearer but it is very useful to have such a law, he said.
Other decisions
The Cabinet also allocated Dh1.3 billion from the 2011 budget for the Zayed Housing Programme and approved an additional allocation of Dh540 million to the Federal budget, out of which Dh105 million will be allocated to the Ministry of Health, and Dh150 million to finance federal universities and help them increase their student capacity.
Moreover, during the Cabinet meeting, Shaikh Mohammad stressed the importance of a balanced federal budget performance, and to harness the governments financial resources for the benefit of the nation and its citizens, and providing Emiratis with all their needs for a dignified life.
The Cabinet approved the optional retirement system for employees of federal government agencies and authorities who have served 30 years or more.
The federal government will bear the subscription value for the employee and its own share from the pension for the remaining period to raise the total to 35 years. It also decided to issue a new Federal Law on competitiveness and another decision to amend the bylaws of Federal Law No 6 of 2007 regarding the setting up and regulating of the Insurance Authority.
The Cabinet passed the National Media Councils strategy for 2011-2013, and wished the council success in its operations and duties under the chairmanship of Shaikh Hamdan Bin Mubarak Al Nahyan, Minister of Public Works.
It approved setting up a board of trustees for the Higher Colleges of Technology.
The board will be chaired by Shaikh Nahyan Bin Mubarak Al Nahyan, Minister of Higher Education and Scientific Research. It also approved setting up the National Transport Authority board of directors, chaired by Shaikh Hamdan.
The Cabinet agreed to complete the payment of the Emirates Transport budget, approved its final account statement for 2009, in addition to approving the final account statement of the Higher Committee of the UAEs Civil Seaports and Airports Security.
The cabinet also approved a system proposed to regulate the boards of directors of federal agencies, and a federal law regarding care for children of unknown parentage, and to amend the bylaws regarding the National Transport Authority structure.
Regarding the UAEs foreign relations, the Cabinet approved the signing of air services agreements with Benin, Luxembourg and Montenegro.
It also agreed to the signing of a double taxation avoidance agreement with Cyprus, and forbidding the evasion of income tax between the two countries.
It approved an agreement between the UAE and Azerbaijan pertaining to cooperation and assistance in customs management, and approved the signing of the 1946 convention on the privileges and immunities for the United Nations.
It also passed a resolution regarding the National Transport Authority becoming a member of the International Union of Railways.
By Zaher Bitar, Staff Reporter
Gulf News 2011. All rights reserved.
