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Sweeping visa changes makes doing business in UAE more attractive

Jun 30, 2018 | Admin

The UAE is one of the most liberal trade regimes in the Gulf. This centralized economic hub is known to be thehome to numerous multi-million-dollar conglomerates and start-ups. Attracting companies from all over the world to shift bases or start offshore branches, the huge inflow of foreign capital into the UAE makes the land of Emirates, the perfect epitome of a thriving business territory.

With the buzz of a new notice in town last week, the government has hooked the attention of the competitive crowd by unleashing another wave of opportunities,

A new set of rules directed towards the relaxation of visa and employment for the UAE private sector has been widely in favor of the resilient business community of the UAE.

So what’s the scoop behind the business upbeat on new rules? Here, at a glance, is an overview briefing the new regulations announced last week

  1. The earlier system of a payment of AED 3,000 bank guarantee for every expatriate employee is painted out of the picture.
  2. A new system of an annual insurance per employee of a comparatively petite amount of AED 60 has come in place.
  3. New 6-month visa to be introduced for job seekers who overstayed their visa but wish to work in the country. Temporary visa to enhance the UAE's position as a land of opportunities, a destination for talents and professionals
  4. Transit tourists are now exempted from an entry visa for the first 48 hours of their stay, and extension up to 96 hours for a fee of AED 50
  5. A generous offer granting a two-year visa to the exemplary students
  6. The government now allows visa status adjustment without the tediousness of leaving and re-entering the country
  7. Also, the government facilitates the voluntary departure of people overstaying their visa without incurring a ban for a temporary period

Striving towards betterment and expansion of this bustling core, the above strategy proposed and to be implemented eases, lightens and provides a game changer to the business world.

As expressed by His Highness Shaikh Mohammad bin Rashid al Maktoum, “It is in the national interest of our country to have the best economy to attract investors”

So what’s to be noted about this catchy replacement and modest new insurance system?

The new low-cost insurance scheme that has come into picture replaces a lump sum amount of AED 3,000 as bank guarantee per expatriate to a meager amount or minimal cost of Dh 60 as annual insurance, This new system offers a coverage of upto AED 20,000.

The generous benefits enjoyed by the private sector employees through this cover

  • Work injuries,
  • Aremuneration for extra working hours,
  • End of service benefits
  • Other provisions such as flight tickets, vacation allowance.

As an effort to benefit the private sector, encourage and enhance better life quality and results in terms of development, this new system will commence soon.

This fresh and schematic guideline is surely protecting employee rights and yes, off course lightens the obligations on employers.

On releasing the current bank guarantees, a total of Dh 14 billion is said to flow into the private sector. This unanticipated injection of liquidity is an added boon to the private sector as they now retrieve this amount. This refund will increase the investments as well as improve comfort of doing business in the UAE

Diversity is an aspect that now comes into play as human resources will now pool in from a lot of countries as the recruitment process is much easier.

Another important sphere to be highlighted is the amendments made on the current visa regulations for transit tourists, residents and students, announced by the UAE cabinet

The new leisurely moves now comprise of

  • Exemption from entry visa fees for transit tourists for the first 48 of their stay.
    • This visa is obtained free of charge for the first 48 hours which comes along with express passport control counters at airports for them as well. Making it much less strenuous and reducing complications. Transit tourists can also avail the opportunity of extending their visa up to 96 hours with a small fee of Dh 50 which certainly is an efficient and propitious move to pull in crowd from all over the world.
  • UAE, certainly an ideal place for the talent pool to be recognized and welcomed. The government now grants a 2- year visa for bright and proficient students. So for all those who have a good knack at a practice, watch out.
    • Reviewing, the current residency system, the UAE cabinet has also officially agreed for the allowance of a two-year extension in the residency period for the dependents of their parents and children upon completion of their university studies.
  • Simplifying the procedure of visa processing and visa status adjustment, the need to leave and re-enter the country is now not a necessity for renewing visa, This is aimed as a cooperative initiative on those individuals with financial burdens.
  • As mentioned above, The UAE cabinet has now initiated to grant a 6- month temporary visa for job seekers without any form of payment.
  • UAE Cabinet adopts a resolution on empowering 'People of Determination', enabling them to equal accessto the job market. . The resolution provides them with the necessary support to obtain equal employment opportunities in various sectors in line with the Government's social development programs for all segments of the society.
    • In the same context, the Cabinet has also adopted the decision to host the headquarters of the Asian Paralympic Committee in the UAE to serve as a unique sports hub in Asia and to provide training courses and workshops for "People of Determination".

Liberal considerations on unwelcomed overstay,

The UAE Cabinet approved a decision to grant people overstaying, a chance to leave the county on voluntary basis without a “no entry” passport stamp, without incurring a ban. Also, for those individuals entering illegally will now be getting a chance to leave with a “no entry” stamp for two years on a condition that they show their valid return ticket.

To sum up it on how the government has loosened its grip,

  • No fines if you exit voluntarily
  • A Minimal fee on fines and possibility of visa transfer
  • Illegally entered individuals can leave the country with a “no entry” stamp for two years.

Focused on the evolvement of a model based on flexibility and openness and striving towards maintaining its position as one among the 10 most competitive countries in the world, the above proposed is expected to come into effect by the 4th quarter of 2018.

So looking forward to the implementation of this seemingly well-crafted system prioritizing effective market prosperity and growth, let us hope to see several gist’s of development and betterment and a bright future ahead.

GSPU TAX CONSULTANCY is one of the leading Tax and Accounting consultancy firm in the UAE