UAE targets middle-income earners with long-term visas

Middle-income earners are set to be the biggest beneficiaries of the UAE’s new visa system, experts have predicted, encouraging existing residents to set down roots.

Five-year Green Visas will be available to people earning Dh15,000 ($4,084) or more per month, as part of sweeping changes to attract new talent to the Emirates.

That brings teachers, young professionals and ordinary working families into a broader long-term visa regime originally aimed at high-net-worth individuals.

Khatija Haque, chief economist and head of research at Emirates NBD, said the government move would encourage existing expats to settle for longer and foreign workers to move here.

It includes five-year visas for people who have a bachelor’s degree and are on much lower incomes than the initial golden visa scheme was targeting

Khatija Haque,
chief economist, Emirates NBD

“The most interesting thing about the package was that it included new five-year visas for people who have a bachelor’s degree – and are on much lower incomes than the initial golden visa scheme was targeting,” she said.

“You’re potentially attracting a much more middle-income component and broadens the number of people that can be included in these longer-term visa schemes.”

Graduates in education, social sciences or culture, among other fields, will be able to apply for the Green Visas. The visas are part of the broader residency regime that offers at least 10 visa types. It was approved by the Cabinet on Monday and comes into effect in September.

“It does make the UAE a very attractive place destination for people in Europe, people in other parts of the world,” Ms Haque told Bloomberg TV.

“These regulations will perhaps make it easier for people who want to come and try their luck.”

Several of the visas do not require residents to be sponsored by an employer.

“You could come in as a freelancer, you could come in as an investor, you could come in as an entrepreneur. These are avenues which weren’t open just two years ago.”

The Emirates aims to recover from the pandemic, boost its population and attract bright new talent.

About 76 per cent of UAE employers plan to expand their workforce in 2022, according to a survey in February by jobs portal Bayt.com and market research company YouGov.

Dedicated jobseeker visas will benefit new graduates, among others. The duration has not yet been announced. Prior to the pandemic, when it was first mooted, it allowed for a six-month stay.

“It gives people a purpose to come here and it helps the government understand they are on a mission to find a job, rather than being here as a tourist,” said Louise Vine, from recruiter Inspire Selection.

Many of the visa changes, including golden residency, were announced during the pandemic and were in effect when the Cabinet rubber-stamped them this week.

Others are new, including a 60-day entry visa – up from 30 days – that will benefit tourists and jobseekers. Parents will be able to sponsor male children until the age of 25, allowing them to remain in the UAE after school and university.

Multi-entry five-year visas will benefit frequent visitors from countries that do not have a visa-on-arrival arrangement, such as India, Pakistan and the Philippines.

At the other end of the scale, there are now at least several paths to achieving a Golden Visa.

A skilled professional with a university education earning more than Dh30,000 ($8,100) is eligible to apply for 10-year residence.

Impact on property market

An investor buying a property for Dh2 million or more can obtain the 10-year Golden Visa.

Property agents believe the visa decision will fuel the property boom seen in the past year, and attract foreign buyers worried by rattled markets in Europe.

Total transactions during the first three months of 2022 stood at nearly 18,000, with a sales value of about Dh43 billion ($11.7 billion), compared with about 10,000 in the same period last year.

Andrew Cummings, head of prime residential, Middle East, at property broker Knight Frank, told The National: “Monday’s announcement is a further step in opening up Dubai to foreign investors and will likely lead to a significant influx in buyers, bolstering an already active market.

“The changes to enable off-plan investors to also gain residency will have the biggest impact, and we are likely to see a increasing demand for off-plan properties, with buyers no longer being restricted to having to have a title deed of a ready property in hand.”

Lewis Allsopp, chief executive of Allsopp & Allsopp, said: “Dubai and the UAE is no longer a temporary place to stay but rather a country to call home, to make a life for a family and to thrive in a professional capacity.”

_______________________________

UAE salary guide 2022: in pictures

'Cheb%20Khaled'

%3Cp%3E%3Cstrong%3EArtist%3A%20%3C%2Fstrong%3EKhaled%3Cbr%3E%3Cstrong%3ELabel%3A%20%3C%2Fstrong%3EBelieve%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A

While you're here

Samanth Subramanian: Imposing Hindi could undermine India's linguistic diversity

Phil Mercer: Aboriginal musicians are struggling to be heard

Gavin Esler: What we lose when we allow languages to die

Sun jukebox

Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)

This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.

Elvis Presley, Mystery Train (1955)

The B-side of Presley’s final single for Sun bops with a drummer-less groove.

Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)

Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.

Carl Perkins, Blue Suede Shoes (1956)

Within a month of Sun’s February release Elvis had his version out on RCA.

Roy Orbison, Ooby Dooby (1956)

An essential piece of irreverent juvenilia from Orbison.

Jerry Lee Lewis, Great Balls of Fire (1957)

Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.

The British in India: Three Centuries of Ambition and Experience

by David Gilmour

Allen Lane

Mina Al-Oraibi: Iraq is in a fight to show its people who is really in charge

Khaled Yacoub Oweis: Iraq PM goes from shy writer to the political peak

The National Editorial: Iran's 'failed model' should be discontinued

MORE FROM ED HUSAIN: The UAE-Israel accord is a win for every Muslim

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.

- Abdullah Ishnaneh, Partner, BSA Law

While you're here

Hussein Ibish: There are reasons for Democrats and Republicans to be happy

Rashmee Roshan Lall: Who are the women driving Joe Biden's success?

Pad Man

Dir: R Balki

Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte

Three-and-a-half stars

Kareem Shaheen on Canada

A second lockdown will be especially tough in cold countries

Hard-hit Canada is springing back to the cliched 'new normal'

Justin Trudeau 2.0 will need to take all of Canada with him

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

At a glance - Zayed Sustainability Prize 2020

Launched: 2008

Categories: Health, energy, water, food, global high schools

Prize: Dh2.2 million (Dh360,000 for global high schools category)

Winners’ announcement: Monday, January 13

Impact in numbers

335 million people positively impacted by projects

430,000 jobs created

10 million people given access to clean and affordable drinking water

50 million homes powered by renewable energy

6.5 billion litres of water saved

26 million school children given solar lighting

TUESDAY'S ORDER OF PLAY

Centre Court

Starting at 2pm:

Elina Svitolina (UKR) [3] v Jennifer Brady (USA)

Anastasia Pavlyuchenkova (RUS) v Belinda Bencic (SUI [4]

Not before 7pm:

Sofia Kenin (USA) [5] v Elena Rybakina (KAZ)

Maria Sakkari (GRE) v Aryna Sabalenka (BLR) [7]

Court One

Starting at midday:

Karolina Muchova (CZE) v Katerina Siniakova (CZE)

Kristina Mladenovic (FRA) v Aliaksandra Sasnovich (BLR)

Veronika Kudermetova (RUS) v Dayana Yastermska (UKR)

Petra Martic (CRO) [8] v Su-Wei Hsieh (TPE)

Sorana Cirstea (ROU) v Anett Kontaveit (EST)

UK to quarantine incoming airline passengers for 14 days

Coronavirus: British public rally around government despite mounting death toll

Arab artists in the UK thank NHS staff by painting their portraits

Coronavirus: Europe will emerge stronger than ever

Kareem Shaheen on Canada

Canada should look past the US election outcome

There would be no Alphonso Davies without open borders

Hard-hit Canada is springing back to life – or to the already cliched 'new normal'

Skoda Superb Specs

Engine: 2-litre TSI petrol

Power: 190hp

Torque: 320Nm

Price: From Dh147,000

Available: Now

While you're here

New prosecution unit for domestic workers 'will encourage victims to come forward'

Domestic workers, far from home, must be protected

India retaliates as US sends diplomat home after indictment

UAE families must now earn Dh25,000 to sponsor a maid

THE DETAILS

Deadpool 2

Dir: David Leitch

Starring: Ryan Reynolds, Josh Brolin, Justin Dennison, Zazie Beetz

Four stars

Day 1, Dubai Test: At a glance

Moment of the day Sadeera Samarawickrama set pulses racing with his strokeplay on his introduction to Test cricket. It reached a feverish peak when he stepped down the wicket and launched Yasir Shah, who many regard as the world’s leading spinner, back over his head for six. No matter that he was out soon after: it felt as though the future had arrived.

Stat of the day - 5 The last time Sri Lanka played a Test in Dubai – they won here in 2013 – they had four players in their XI who were known as wicketkeepers. This time they have gone one better. Each of Dinesh Chandimal, Kaushal Silva, Samarawickrama, Kusal Mendis, and Niroshan Dickwella – the nominated gloveman here – can keep wicket.

The verdict Sri Lanka want to make history by becoming the first team to beat Pakistan in a full Test series in the UAE. They could not have made a better start, first by winning the toss, then by scoring freely on an easy-paced pitch. The fact Yasir Shah found some turn on Day 1, too, will have interested their own spin bowlers.

Jurassic%20Park

%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESteven%20Spielberg%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Sam%20Neill%2C%20Jeff%20Goldblum%20and%20Richard%20Attenborough%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%205%2F5%3C%2Fp%3E%0A

While you're here

Damien McElroy: It's too early to say who will win the vaccine hurdle race

Mustafa Alrawi: To get the 'jab' done, governments must show patience and empathy

Editorial: The fight against Covid-19 should be guided by science

More on G20 meeting

Saudi Arabia convenes online G20 meeting to talk coronavirus

World Bank and IMF call for debt relief to help poorer countries

Saudi king to chair extraordinary G20 video summit on Covid-19

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates

MORE FROM COMMENT

RASHMEE ROSHAN LAL: How the pandemic is testing the solidarity of the European Union
ALISTAIR BURT: Despite Brexit, Britain can remain a world power

Directed: Smeep Kang
Produced: Soham Rockstar Entertainment; SKE Production
Cast: Rishi Kapoor, Jimmy Sheirgill, Sunny Singh, Omkar Kapoor, Rajesh Sharma
Rating: Two out of five stars

More from Neighbourhood Watch:

Neighbourhood Watch: away from Dubai's glitz, Hatta is where present and past collide

Neighbourhood Watch: A rare glimpse of Bedouin life in the humble border town of Qoa

Neighbourhood Watch: Al Ghadeer, the Abu Dhabi satellite town that could be the future of transport

UAE targets middle-income earners with long-term visas

Graduates in education or social sciences on Dh15,000 salaries eligible for five-year Green Visa

Impact on property market

UAE salary guide 2022: in pictures

'Cheb%20Khaled'

While you're here

Sun jukebox

Labour dispute

While you're here

Kareem Shaheen on Canada

Quick pearls of wisdom

Paatal Lok season two

Ten tax points to be aware of in 2026

At a glance - Zayed Sustainability Prize 2020

TUESDAY'S ORDER OF PLAY

Related

Kareem Shaheen on Canada

Skoda Superb Specs

While you're here

THE DETAILS

Day 1, Dubai Test: At a glance

Jurassic%20Park

While you're here

More on G20 meeting

MORE FROM COMMENT

More from Neighbourhood Watch: