Dubai’s economy will get a boost of up to one per cent from the 10-year golden visa residency scheme launched to attract foreign direct investment as well as best human capital into the UAE and more categories will also be added in the future, Dubai Economy said on Monday.
An analysis conducted by the corporate strategic affairs department in Dubai Economy found that when all stages of granting golden residency to different groups are completed, economic growth rate in Dubai is likely to increase between 0.25 per cent and one per cent, driven largely by domestic demand and investment.
In June 2019, the UAE government had announced that 6,800 investors and professionals based in the UAE, who hold around Dh100 billion in assets and hail from 70 countries, to receive the golden visa.
On November 15, 2020, the UAE expanded the list of professionals who are eligible for the long-term visa. It included all doctors, all engineers specialized in computers, electronics, programming, electricals, electronics and active technology can get the long-term residency visa. In addition, people who get high score (3.8 or more) in approved universities will also get the golden visa.
The golden residency will also open new markets and horizons in various sectors, including insurance, finance, real estate and university education. It will also be granted to holders of specialised degrees in artificial intelligence, big data, or epidemiology and virology in addition to the top graduates of UAE high schools along with their families. More categories will be added in the future across various stages.
According to the 2019 annual report of the Dubai Health Authority, the number of resident doctors in Dubai reached about 9,120 by the end of last year while the number of resident dentists reached 2,365. Data by the Dubai Statistics Centre’s Labour Force Survey in 2019 indicated that the number of PhD holders in Dubai reached 10,366. Dubai is also home to over 63,000 engineers in the fields of technology, and over 16,000 electrical engineers.
By encouraging the study of engineering sciences, technology, software, and medicine, in addition to providing an incentive for employees in Dubai and the UAE to develop their skills and increase their education levels golden residency will have a positive impact on productivity of individuals, particularly fresh graduates, and the economy overall.
Mohammed Shael Al Saadi, CEO of the Corporate Strategic Affairs sector in Dubai Economy, said that the new amendments to golden residency signifies a strong impetus and a qualitative leap in supporting the process of sustainable development and economic growth in Dubai and the UAE in the short to long term, adding that creativity and talent of the people are the basis of the economic development process.
“The changes in the residency system reflect the UAE's interest in not only attracting creative and talented people, but also in ensuring they remain in the country through providing them with a stimulating environment and increasing family stability. This will have a positive impact on development, especially in promoting investment, including foreign investment,” said Al Saadi said.
According to studies, the consumption and investment behaviour of expatriates mainly depends on their expectations of the duration of their stay in the host country. If individuals and their dependents expect to stay for a long time, their spending will increase and cash transfers abroad will decrease, thus boosting local aggregate demand in Dubai and the UAE in general, and stimulating economic growth.
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