Permanent Residency Program: UAE launches 'Golden Card' to stimulate economy
Updated 00:01, 10-Jun-2019
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The United Arab Emirates has launched a so-called "Golden Card" permanent residency program aimed at a select group of foreigners who have invested a combined $27 billion in the country. The program is designed to stimulate the UAE economy and it will be extended later to a variety of skilled professionals as well. Jacob Greaves has more from Dubai.
A growing number of expats may soon be able to call the UAE home – permanently. Investors appear to be the immediate beneficiaries, but skilled professionals in fields such as medicine, engineering and science are also set to be eligible. It comes as the UAE, alongside its Gulf neighbours, face more challenging futures. Adjusting to lower oil prices and less reliance on state spending.
GARBIS ARADIAN MENA, CHIEF ECONOMIST INSTITUTE OF INT'L FINANCE "The UAE economy is slowing down, we're still working with a growth rate of 2%, last year it was 1.7, so such a growth rate, compared to before 2014, is not very high and it's not enough to create enough jobs and I know that many expats left the UAE as in the case of Saudi Arabia, about 1.5 million expats left the country, so hopefully, beyond the near term, things could change and growth will accelerate driven by the private sector and mainly because of this measure which will encourage investment in the non-energy sector and will create new SMEs."
Last year the UAE announced 5- and 10-year visas for some investors. But this notable shift in policy could be timely. In its Q4 economic review for 2018, the UAE's central bank acknowledged job creation had softened in some labour intensive private sectors.
JACOB GREAVES DUBAI "But just as the UAE isn't alone in facing tougher economic conditions in the Gulf, it's also not the only regional power trying to lure in foreign talent and money, neighbour Saudi Arabia has been embarking on its own diversification drive."
MARWAN HADDAD, SENIOR PORTFOLIO MANAGER EMIRATES NDB ASSET MANAGEMENT "Certainly there's competition we see Saudi coming back from nowhere and honestly achieving huge milestones in terms of regulation reforms, ease of doing business and finally the green card, which we believe ultimately is the solution to address the challenge of keeping the population in this country, engaged investing and saving at the same time."
In both Saudi Arabia and the UAE, such measures have been seen by analysts as a step in the right direction. But only time will tell how far the reforms actually go. And whether the UAE's Golden card, can help its economy shine. JG, CGTN, Dubai.