The UAE cabinet, presided over by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has approved steps that would allow for 100 per cent ownership of UAE-based businesses by foreign investors by the end of this year.

The new visa system will increase the chances of attracting investors and competencies to the UAE and thus increase the country's economic competitiveness globally and also provide a major boost to the country's real estate market, said a report from Dubai Media Office.

Sheikh Mohammed directed the Ministry of Economy in co-ordination with the concerned parties to implement the resolution and follow up on its developments, and also submit a detailed study in the third quarter of this year.

"The UAE will remain a global incubator for exceptional talents and a permanent destination for international investors. Our open environment, tolerant values, infrastructure and flexible legislation are the best plan to attract global investment and exceptional talents in the UAE," he stated.

Under this system, investors and specialists in medical, scientific, research and technical fields, would be granted up to 10-year residency visas along with all scientists and innovators. Also a five-year residency visa would be granted for students studying in the UAE, and 10-year visas for exceptional students.

The new decision will also review the current residency system to extend the residency time for the dependent students after completing their university studies, said the Dubai Media Office report.

This will give them the opportunity to study their practical options in the future, it added.

The UAE cabinet move has been welcomed by several of the country's leading business experts and industry specialists, who have dubbed it as a game-changing initiative.

"This will help boost the real estate market in a big way. Now families, assured of the 10-year residency could call the UAE their home and will be encouraged to invest in their freehold homes," remarked Atif Rahman, the director and partner at Danube Properties.

"This will also help developers and mortgage providers to offer better choices and options now that the visa tenure has been extended to cover a longer period," he stated.
 
"This landmark decision will change the economic landscape of the region as we expect other countries to follow the trend set by the UAE. The UAE’s visionary leadership has always been a step ahead in implementing game-changing ideas," he added.

Sudhakar R. Rao, the chairman of Gemini Property Developers, said: "It is a timely and wise decision by the visionary leadership of the UAE, which will have a positive impact on all sectors of the economy."

"The real estate will get direct benefit as the property buyers, with families, will have the comfort of 10 years stay in the UAE," noted Rao.

"From the property sales point of view, it will help sell the properties and clear the backlog of large chunks of inventory available in the market. It will encourage developers to invest more in the sector. The decision will not only improve the market sentiment, but also will have a chain effect to accelerate investments in general," he stated.

Samana Developers Group CEO Imran Farooq dubbed it as a timely and strategic move by the UAE, which will have economic and social impact.

"UAE is already a magnet for international investors. The new law will further boost investor confidence, especially in real estate and construction sectors. I expect an influx of new businesses, new investors coming to UAE," noted Farooq.

"The 100 per cent business ownership and 10 years residency for investors will attract FDI to Dubai’s real estate sector," he added.

Avin Gidwani, the chief executive of BNC Network, said: "This policy will mark the beginning of the next economic wave - it clearly answers the question about the driver behind the aggressive ongoing construction."
 
"The UAE’s leadership has always been visionary and this policy demonstrates their sophisticated economic outlook and far-sightedness. This is a game-changing initiative that will boost investor confidence and add rocket fuel to the UAE economy," remarked Gidwani.
 
"We have been predicting an infection point this year and this could very well be it for the UAE," he added.-TradeArabia News Service