New permanent residency scheme to have a positive impact on the logistics sector

Published: Thursday, August 8, 2019

A survey of UAE investors and residents show that the recently implemented UAE Permanent Residency Scheme has created a positive sentiment in the investment community.

A random survey of 1,012 respondents indicates that existing investors have more appetite to increase their portfolio, while would-be investors are now more open to start investing.

Seventy-nine per cent of UAE investors say that with the launch of the permanent residency scheme (golden card), they will consider expanding their investments in the country.

Logistics included in UAE economic activities eligible for 100% foreign ownership

This is according to a survey conducted by Lootah Real Estate Development, the real estate development arm of Lootah Holding.

Sixty-eight per cent of the UAE-expat investors said they plan to grow their investment portfolio by investing in property, more specifically in properties located in Dubai. Property leads the investment class option (68 percent), followed by business (26 percent), and stocks (4 percent).

Of those who expressed interest on property investments, 79.7 percent said that they prefer investing in Dubai.

The optimism also extends to those who do not have investments yet. As per the survey, among the 819 respondents who are not yet investors, 29 percent said that they will consider investing in the UAE because of the permanent residency scheme.

Saleh Abdullah Lootah, CEO at Lootah Real Estate Development, said, “The growth in the number of expats who are interested in real estate investments signify that they are becoming more confident of the market. The property sector is one of the major sectors that drive the UAE economy and the shift of their mindset to buying from renting is definitely a great boost.”

Aimed at boosting UAE’s business economy, the new scheme allows property investors with a gross value of at least Dh5 million, expatriates with investments worth at least Dh10 million and entrepreneurs with an existing project amounting to Dh500,000 or more to stay in the UAE longer.  As a part of the special talent section, personnel such as executive directors or senior management with a bachelor’s degree, five years’ experience in the UAE region and a monthly salary of Dh30,000 will be eligible for a 10-year visa too.

The UAE government is also keen on investing in the knowledge-based economy as the new visa scheme also allows people with specialized talents and outstanding students to avail it. These include researchers, scientists, physicians, artists, and people who are working in the fields prioritized in the UAE and students with at least 95% in secondary school and a GPA of 3.75 upon graduation.

“The permanent residence visa is a great initiative by the government to stabilize the country’s economy, most especially the real estate market. An increase on the interest of foreign investors and expatriates in buying properties in the UAE is expected which will eventually drive the real estate sector to a boom,” Saleh Abdullah Lootah added.