Golden Visa schemes in Dubai and Abu Dhabi compared

Data on UAE Golden Visa approvals from 2021 to 2023 reveals a remarkable upward trend, displaying the program’s growing popularity and success. In 2021, there were 47,200 approvals, which increased to 79,600 in 2022, and surged to 158,000 in 2023 says Patricia Casaburi, CEO at Global Citizen Solutions.

The tripling of approvals over three years underscores the effectiveness of the UAE’s initiatives to attract investors, entrepreneurs, and highly skilled professionals. The substantial year-on-year growth highlights the strategic efforts by the UAE to diversify its economy, enhance its global competitiveness, and establish itself as a prime destination for talent and investment. The Golden Visa scheme’s increasing appeal reflects its role in boosting foreign direct investment and contributing to the country’s economic resilience and development.

Abu Dhabi and Dubai, the two largest and most prominent emirates in the United Arab Emirates (UAE), have become highly attractive destinations for investment migration. Through a combination of strategic economic diversification, robust infrastructure, and favourable business environments, both cities offer a range of Golden Visa programs aimed at attracting global investors, entrepreneurs, skilled professionals, and exceptional talents. These programs provide long-term residency and numerous benefits, making them appealing to individuals seeking stability, growth opportunities, and a high quality of life in the UAE.

The concept of investment migration in the UAE has evolved significantly over the past few decades. Initially, the UAE’s economy was heavily reliant on oil and gas, with limited avenues for foreign investment outside the energy sector. However, with the realization that sustainable economic growth required diversification, the UAE began implementing strategic reforms in the late 20th and early 21st centuries. Abu Dhabi and Dubai spearheaded these efforts, developing world-class infrastructure, establishing free zones, and introducing favorable business policies (see above).

The Golden Visa programs, launched in 2019, are a culmination of these efforts, reflecting the UAE’s commitment to attracting and retaining global talent and investment. These programs offer long-term residency to investors, entrepreneurs, and skilled professionals, aligning with the UAE’s vision of becoming a global hub for business and innovation.

The allure of Abu Dhabi and Dubai’s investment migration programs lies in the comprehensive benefits they offer to investors and their families. Firstly, these programs provide long-term residency, typically ranging from 5 to 10 years, with the possibility of renewal. This provides a higher degree of stability compared to standard work visas, which are usually valid for 1 to 3 years and are tied to employment contracts. Stability allows investors to plan for the future and integrate into the local economy and community. Secondly, the UAE’s favorable tax environment, which includes no personal income tax, makes it an attractive destination for high-net-worth individuals and businesses. Additionally, the Golden Visa programs cover investors’ immediate family members, ensuring that their spouses and children also benefit from the same privileges, including access to high-quality education and healthcare services.

Abu Dhabi and Dubai’s strategic locations at the crossroads of Europe, Asia, and Africa further enhance their appeal. These cities offer unparalleled connectivity through world-class airports and seaports, facilitating global trade and travel. Moreover, both emirates boast vibrant, cosmopolitan environments with a high standard of living, modern infrastructure, and a wide range of recreational and cultural activities. Investors can enjoy a luxurious lifestyle, with access to premier shopping, dining, and entertainment options. The safety and security of the UAE, combined with its political stability, provides a conducive environment for both personal and professional growth.

The investment migration programs of Abu Dhabi and Dubai, as highlighted, are integral to the UAE’s broader strategic vision of becoming a global leader in innovation, sustainability, and economic diversification. When comparing both schemes, Dubai has a highly diversified economy, with significant contributions from tourism, finance, real estate, and trade. While also diversified, Abu Dhabi’s economy remains more heavily reliant on oil and gas compared to Dubai. However, significant investments have been made in sectors such as renewable energy, tourism, and finance.

Dubai is known for its vibrant business environment and extensive free zones that encourage foreign investment. Free zones in Dubai offer numerous advantages for foreign businesses, making them highly attractive for international investors. One of the primary benefits is the allowance for 100% foreign ownership, eliminating the need for a local sponsor or partner. Additionally, companies operating within these zones enjoy significant tax benefits, such as exemptions from corporate and income taxes for a specified period. Businesses also benefit from simplified customs procedures, facilitating smoother and more cost-effective international trade. Furthermore, free zones allow for the repatriation of 100% of profits and capital, providing investors with financial flexibility. There are no currency restrictions enabling businesses to operate in multiple currencies freely. Finally, these zones are equipped with state-of-the-art infrastructure, catering to various industries, and enhancing the overall business environment.

The city is also renowned for its openness to new businesses, with numerous initiatives to attract startups and international companies. The ease of doing business, quick registration processes, and supportive policies make it an ideal destination for entrepreneurs and investors.

Abu Dhabi is steadily increasing its openness to new businesses, with initiatives like Hub71, which supports tech startups and innovation. However, the emirate is more prone to offer substantial governmental support for large-scale investments and long-term economic projects. Abu Dhabi has developed a robust framework to attract and support large-scale investments and long-term economic projects through various initiatives and programs. A cornerstone of this strategy is the Abu Dhabi Economic Vision 2030, which aims to diversify the emirate’s economy and reduce its reliance on oil. This comprehensive plan focuses on developing key sectors such as tourism, aviation, real estate, and manufacturing, thereby encouraging substantial investments.

To stimulate economic growth, the Abu Dhabi government offers a range of incentives including tax exemptions, subsidies, and grants. These financial supports are designed to attract FDI and stimulate growth in strategically important sectors. Significant investments in infrastructure projects, such as the development of airports, seaports, and road networks, facilitate efficient logistics and make Abu Dhabi an attractive destination for large-scale investments.

These incentives are intricately linked to the Golden Visa program, which is aimed at attracting substantial investments into the emirate. Investors who commit more than AED 10 million to public investments, deposits, company establishments, or partnerships are eligible for the Investor Golden Visa. This visa provides long-term residency benefits not only to the investors but also to their families, including spouses, children, an executive director, and an advisor. The alignment of investment incentives with the Golden Visa program underscores Abu Dhabi’s strategy to create a stable and attractive environment for high-net-worth individuals and their families.

The cost of living in Abu Dhabi is generally lower than in Dubai, especially concerning housing. This can make it a more attractive option for families and individuals looking for a high standard of living at a more affordable cost. Additionally, many expatriates are drawn to Abu Dhabi due to the attractive remuneration packages, which are significantly enhanced by the absence of income tax, property taxes, or VAT. This fiscal advantage allows expatriates to retain a larger portion of their earnings compared to many other countries, where such taxes can substantially reduce take-home pay. Consequently, real wages in Abu Dhabi are far higher, making it a highly appealing destination for skilled professionals and workers seeking lucrative employment opportunities.

Comparison of Golden Visa Schemes in Dubai and Abu Dhabi:

Both Abu Dhabi and Dubai offer robust Golden Visa programs with attractive benefits for various categories of applicants. The choice between the two depends on individual preferences, investment capacities, and specific personal or professional goals. Dubai may be more appealing for those seeking a dynamic, fast-paced environment with a diverse range of opportunities, while Abu Dhabi offers a more serene and culturally rich setting with strong governmental support for large-scale investments and research initiatives.

Case Studies: Increasing Mobility Through UAE Citizenship

Consider a successful entrepreneur from India, who acquires UAE residency through a significant investment in a tech startup in Dubai. Previously, with their Indian passport, the investor had limited visa-free access to 92 countries (GPI). After five years of residency, their substantial contributions to the tech sector led to their nomination for UAE citizenship under the new legislation for exceptional talents and investors. Upon receiving UAE citizenship, their mobility increases dramatically. With a UAE passport, they gain visa-free or visa-on-arrival access to over 177 countries. This transformation not only facilitates easier and more frequent international business travel but also opens numerous personal and professional opportunities globally, significantly enhancing their ability to operate on a worldwide scale.

The investors’ family also benefits significantly from their new UAE citizenship. Their spouse and children, now also eligible for UAE citizenship, experience a similar enhancement in their travel freedom. This increased mobility allows the family to travel more freely for leisure, education, and business purposes, providing them with greater global opportunities and improving their quality of life. This example underscores the profound impact that UAE citizenship can have, not just for individual investors, but for their families as well.

In the case of an accomplished professor from South Africa, relocating to the UAE under the Golden Visa scheme, is an opportunity to benefit from country’s professional growth opportunities, enhanced research funding, and superior quality of life. This move offers her long-term residency, family sponsorship, and a significant increase in global mobility, enabling travel to 177 countries compared to the 116 accessible with her South African passport. The UAE’s strategic location and advanced infrastructure will facilitate her participation in international conferences and collaborative projects, thereby advancing her academic influence and research endeavors. This relocation underscores the UAE’s appeal to top global talent through progressive visa policies, fostering an environment ripe for innovation and scholarly excellence.

For a renowned medical doctor from Lebanon relocating to the UAE under the Golden Visa scheme, the move provides him with long-term residency, family sponsorship, and a significant increase in global mobility, allowing travel to 177 countries compared to the 64 accessible with his Lebanese passport. The UAE’s strategic location and state-of-the-art medical facilities will enhance his ability to participate in international medical conferences and collaborative research projects, thereby expanding his professional influence and expertise. Dr. Haddad’s relocation highlights the UAE’s capacity to attract top global talent through its progressive visa policies, creating an environment conducive to medical innovation and excellence.

Conclusion

In the last five years, the UAE has emerged as a magnet for foreign direct investment (FDI) and wealth relocation due to the implementation of numerous laws that have both stimulated FDI by relaxing company ownership restrictions and imposing business-friendly tax regimes. Central to this strategy has been the introduction of attractive Golden Visa schemes, which provide long-term residency to investors, entrepreneurs, skilled professionals, and their families. These initiatives have significantly enhanced the UAE’s appeal, making it an attractive destination for global talent and capital. The ease of doing business, combined with substantial governmental support, and streamlined processes, has positioned the UAE as a leading hub for international investment.

Dubai and Abu Dhabi, the two primary emirates, offer remarkably similar Golden Visa schemes in terms of applicant typology and requirements. Both emirates cater to investors, entrepreneurs, and professionals, providing long-term residency options that ensure stability and security. However, the key distinction lies in the investment threshold and focus of the projects. Dubai’s Golden Visa for non-real estate investors requires an investment of AED 2 million (approximately USD 545,000), whereas Abu Dhabi’s program demands a significantly higher investment of AED 10 million (approximately USD 2.72 million). This difference reflects the respective strategic priorities of each emirate, with Dubai emphasizing tech and innovation-driven startups, while Abu Dhabi focuses more on large-scale structural projects supported by substantial public funding to diversify its GDP.

Another pivotal reform has been the UAE’s recent relaxation of its naturalization laws, allowing expatriates to obtain citizenship after 30 years of residency. This is a bold move, particularly in a country where 88.5% of the population consists of foreigners. By offering a path to citizenship, the UAE is fostering a more inclusive society and providing long-term residents with a greater sense of belonging and security. This change is expected to attract even more interest from global investors and skilled professionals, further enhancing the UAE’s position as a leading destination for international talent and capital.

These reforms are particularly attractive to wealthy families, especially those from Southeast Asia, who are drawn to the UAE by the promise of a better quality of life, enhanced mobility, and improved future prospects for their children. The UAE’s high rankings in global indices for innovation, quality of life, and safety, combined with its world-class education and healthcare systems, make it an ideal place for families to live and thrive. The comprehensive benefits provided by the Golden Visa programs, including long-term residency and access to superior amenities, ensure that the UAE remains a top choice for those seeking a stable and prosperous environment to invest, work, and raise their families.

By Patricia Casaburi, CEO at Global Citizen Solutions