The UAE is offering people with lapsed visas a grace period to finalise their status or exit the country. The National
The UAE is offering people with lapsed visas a grace period to finalise their status or exit the country. The National
The UAE is offering people with lapsed visas a grace period to finalise their status or exit the country. The National
The UAE is offering people with lapsed visas a grace period to finalise their status or exit the country. The National

UAE to begin residency visa overstay amnesty in September


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The UAE will begin a two-month amnesty in September to allow people with expired residency visas an opportunity to secure their status or leave the country without incurring fines.

The initiative was launched by the Federal Authority for Identity, Citizenship, Customs and Port Security on Thursday.

The authority said the grace period was being introduced to afford people with expired documentation the chance to “regularise their status”.

“The Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) aims to provide violators with a new opportunity to regularise their status in accordance with the law, as a gesture that reflects the values of compassion and tolerance upon which the UAE is built,” it said.

Crucial lifeline

A community leader welcomed the decision saying that it would open up a much needed path for people to return to their home countries.

“It is a big relief for so many, there are people who came here searching for jobs and they overstayed. There are also people duped by agents who promised higher paying jobs and they end up with nothing and they overstay,” said Ishtiyak Raziq, past president of Sahana, a Sri Lankan welfare association.

“There are people who left Sri Lanka due to the financial crisis and they overstayed as they are unable to pay the fines. “And there are people with health issues without insurance and the fines are piling up. It will be good for all of them to go back and start afresh.”

Mr Raziq said the announcement would grant a reprieve to people who struggled to find employment after the coronavirus pandemic.

“What the government of the UAE has decided is timely and we are grateful as expatriates that they can go back to their home country,” he said.

Latest visa drive

The UAE held a similar visa amnesty scheme in 2018, from August to December.

It allowed residents who had overstayed their visas or people who entered the country illegally to modify their status with the government, to either return home or legally extend their stay without fear of fine or imprisonment.

It followed similar initiatives held in the Emirates in 2007 and 2013.

The huge turnout for a Dubai government event in February 2023 offering advice to people who have overstayed their visas highlighted how pressing a concern residency status is for many in the emirate.

The awareness scheme, titled “A Home For All”, was scheduled to run for three days at City Centre Deira, from 10am until 10pm.

But organisers had to postpone the information session on its opening day after the venue reached capacity by 1pm, with large crowds gathering to seek support.

It was set up to provide help to residents and visitors with lapsed visas about the steps they need to take to remain in the Emirates and find work legally.

A senior official from the General Directorate of Residency and Foreigners Affairs (GDRFA) said at the time that authorities were keen to help people understand the correct procedures to be followed and find solutions to resolve overstay cases.

What are the visa overstay rules?

The financial penalty has been standardised at Dh50 per day for tourists or residents who overstay their visas, following updates by the ICP in October 2022.

Residency visa holders are given six months to leave the country or change their status by finding a job once their visa expires or is cancelled.

The amnesty will support those who remain in the country illegally beyond this existing six-month grace period.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

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Updated: August 05, 2024, 10:48 AM