Wednesday 22 January 2020

Saleh Abdullah Lootah

UAE’s permanent residency scheme lures investors

DUBAI, July 11, 2019

Seventy-nine per cent of UAE investors said that with the launch of the permanent residency scheme (golden card), they will consider expanding their investments in the country, according to a survey conducted by Lootah Real Estate Development, a unit of Lootah Holding and one of the leading providers of state-of-the-art residential and commercial properties in the UAE.

Sixty-eight per cent of the UAE-expat investors said they plan to grow their investment portfolio by investing in property, more specifically in properties located in Dubai. Property leads the investment class option (68 per cent), followed by business (26 per cent), and stocks (four per cent).

Of those who expressed interest on property investments, 79.7 per cent said that they prefer investing in Dubai.

The optimism also extends to those who do not have investments yet. As per the survey, among the 819 respondents who are not yet investors, 29 per cent said that they will consider investing in the UAE because of the permanent residency scheme.

Saleh Abdullah Lootah, CEO at Lootah Real Estate Development, said: “The growth in the number of expats who are interested in real estate investments signify that they are becoming more confident of the market. The property sector is one of the major sectors that drive the UAE economy and the shift of their mindset to buying from renting is definitely a great boost.”

Aimed at boosting UAE’s business economy, the new scheme allows property investors with a gross value of at least Dh5 million ($1.36 million), expatriates with investments worth at least Dh10 million and entrepreneurs with an existing project amounting to Dh500,000 or more to stay in the UAE longer.

As a part of the special talent section, personnel such as executive directors or senior management with a bachelor’s degree, five years’ experience in the UAE region and a monthly salary of Dh30,000 will be eligible for a 10-year visa too.

The UAE government is also keen on investing in the knowledge-based economy as the new visa scheme also allows people with specialized talents and outstanding students to avail it. These include researchers, scientists, physicians, artists, and people who are working in the fields prioritized in the UAE and students with at least 95 per cent in secondary school and a GPA of 3.75 upon graduation.

“The permanent residence visa is a great initiative by the government to stabilize the country’s economy, most especially the real estate market. An increase on the interest of foreign investors and expatriates in buying properties in the UAE is expected which will eventually drive the real estate sector to a boom,” Lootah added.

Reports also stated that the increased interest of investors in property is attributed to the stability of the real estate industry in the UAE and the most-awaited Expo 2020 which is expected to yield Dh122 billion investment windfall for the UAE.

In the long run, business experts and industry leaders see the permanent residency scheme as a game-changing shift that will enable UAE to be the top destination not just for investors but for talented beings as well. – TradeArabia News Service


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