The UAE’s residency reforms and a rate war among various free zones are turning out to be a boon for expatriates, including non-resident Indians (NRIs), to start own businesses at a lower cost and without local sponsorship and partnership.
Included among the residency reforms are green visa and freelancer visa schemes, which allow foreigners to work in the country without the need for employer sponsorship.
Holders of the new green visa will be able to work without corporate sponsorship and can sponsor their parents and children up to the age of 25 years.
At present, for sponsoring a parent, the applicant should be drawing a monthly salary of a minimum AED20,000 (£3,932, $5,444, €4,608). Also, sons above the age of 18 years are not allowed to stay in the country if they are not enrolled in any educational institutions.
Half a century
The residency reforms are part of ‘Projects Of The 50’, which will commemorate the country’s half centenary through a series of initiatives that outline the roadmap for the next 50 years.
The initiatives aim to accelerate the UAE’s development and consolidate all sectors into a comprehensive hub and establish its status as an ideal destination for talents and investors.
Foreigners account for 90% of the 10 million population of the UAE.
NRIs will be the largest community to benefit from the new visa rules as Indians make up 60% of the expatriate population in the country.
“The reforms, including the launch of the green visa and freelancer visa, are aimed at attracting and retaining talents, investors, entrepreneurs, professionals and experts. The whole idea is to make the UAE the global hub for talented and influential human resources. The new visas give the holders a sense of permanence in the UAE,” said KV Shamsudheen, managing director, Barjeel Geojit Financial Services, Dubai.
The green visa is targeted to attract highly-qualified individuals, investors, business people, entrepreneurs as well as exceptional students and graduates.
Like the golden visa, it gives self-residency status to holders. It distinguishes between work permits and residencies, meaning the residence permit is not linked to a company work permit. The self-residency visa will be sponsored by employees themselves, not their companies if they are employed.
Expatriates currently can get limited validity visas attached to their employment, which required them to exit the country on expiry of the visas or renew them periodically.
Different from golden visa
The green visa scheme is distinct from the golden visa scheme launched in 2019, which is issued for five or 10 years and offered to high net worth individuals who bring large investments to the UAE. The golden visa offers expats the opportunity to live in the country without having to renew their visa every two or three years and without the need for a sponsor.
A new visa is also being introduced for expatriate students aged 15 and above who are looking to gain work experience across several different sectors. This is to project the UAE as an ideal destination for work, education, and entrepreneurship for people in any field.
Earlier, golden visas were offered to a particular set of expatriates. But the eligibility has now been expanded to include managers, chief executives, specialists in science, engineering, health, education, business management and technology.
“This means the procedures for the 10-year visa has been simplified for attracting highly skilled and specialised residents, investors, entrepreneurs, scientists, pioneers, leading students and graduates,” said Shamsudheen.
Freelancer Visa
The freelancer visa is aimed at self-employed expats. It is the first federal scheme of its kind, and enables the self-employed to sponsor themselves. Workers based in the UAE and overseas in specialised fields such as artificial intelligence, blockchain and digital currencies are eligible for the freelancer visa.
The other specific regulatory changes related to visas:
- Extension of business trip permits from three months to six months
- Sponsorship of parents under the visa of direct family members
- One-year residency extension for humanitarian cases
- Extension of children’s age limit on parents’ residency from 18 to 25 years
- Extension of grace period upon job loss or retirement to 90 to 180 days.
Job loss a blessing in disguise
Hundreds of expatriates, who lost their jobs in the wake of the economic slowdown following the spread of the covid-19 pandemic, have set up their own businesses, making use of the change in sponsorship rules and incentives offered by various free zones in the UAE.
Further, the cost of setting up businesses is coming down drastically with the free zones offering competitive rates for issuing trade licences and setting up businesses.
As it is, 100% foreign ownership is allowed in the free zones. Further, this 100% ownership is now allowed for companies outside the free zones. The average cost of setting up a business ranges from AED15,000 to AED50,000, depending on the nature of the business.
Set up new firm for a song
Several new consultancy services have sprung up, offering comprehensive services such a visas, trade licences, emigration services and attestation services to facilitate the setting up of new businesses within and outside the free zones.
The latest is from Arabian Express Services, functioning under Al Nahda Centre, a super market for various government services.
“A professional licence, including partner visa, can be obtained for AED8,799. No sponsorship fee is charged,” said M Mustafa, chief executive of Arabian Express Services.
“Here is a golden opportunity to start business and be your own boss. The facility is available to expatriates on visit visa also. Freelancer visa is an opportunity for serving professionals as well as retired professionals to stand on their own,” said Nissar Syed, chief executive of Asia Vision Services.
