Catalin: So since 2019, we have seen that the real estate investment in Dubai have been rapidly gaining popularity among the overseas investors. Following the announcements of the UAE Golden Visa. The numbers of transaction in both sectors, residential and commercial, have been grown exponentially. At the moment, the sweet spot of the real estate, it is in the off land market where the developers are competing each other in delivering the highest living standards in the industry that we know as of today.
Salman: Welcome to the investment immigration podcast by Uglobal.com with weekly in-depth interviews with the world's leading investment immigration professionals. Welcome to another episode of Uglobal Immigration Podcast. Today we are going to focus on the UAE region, about its visa programs, about its residency programs. And a lot has been happening since 2019 there. The country has launched its so called green visa. There's news about its golden visa program. A lot of people don't know about this still. And part of the reason is that most people don't really I should say, they really didn't think about that region in terms of long term residency. But that is changing in the region, especially in the Gulf region. We are seeing a lot of activity. So to discuss all of this, to unpack all of this. Today we have a very special guest with us. His name is Catalin Trifan. He's the director of sales for the MENA Region for Discus Worldwide, a company which provides services in the area of residence and second citizenship planning, financial planning and tax consulting. So welcome to the show Catalin.
Catalin: Thank you so much, Salman, for the invitation and thank you so much for your audience.
Salman: Thank you. So we're just going to start by asking you to help our listeners understand the golden visa options in the UAE for high net worth individuals. What visa categories are there for them, especially for investors, and which one should they apply for?
Catalin: Yeah, let's start with the beginning. So let's identify what the golden visa is. It is a long term residency which enables foreigners to live, work and study in the UAE. Now there are a few segments of investment that can be done. One, it is a real estate investment and the second one it is the public investment. So every category has its own characteristic. The real estate requires a minimum investment of 2 million dirhams, and the public investment can be considered opening a company in UAE and having shares in the company of value of 2 million. So both of them are in the category of 2 million. Now, this visa, the major benefits of it are that you get an entry of six months period from four multiple entries to proceed with your residence issuance, a long term renewable residency visa valid of ten years.
Salman: To understand from your answer is that there's at the moment just one option then for high net worth individuals in terms of visa.
Catalin: Yes.
Salman: And 2 million dirhams is roughly about half a million dollars, isn't it?
Catalin: Yes, it's around $500,000. It is coming with the acquisition of a real estate. This can be in both sectors, the real estate and commercial. So there's not a restriction on that. And along with that, it is coming the residency permit of ten years.
Salman: Right. And on that point, is it just the real estate, though, or can one invest in a business or buy government bonds to become eligible for the golden visa?
Catalin: There is an option which is currently used by many of the investors, which is a fixed deposit. Currently, the banks in UAE are offering between starting from 3.8% all the way up to 5%. So this has been extremely attractive to investors and this is one of the options that it is often chosen by them.
Salman: And the threshold for the money is the same as it's a 2 million dirhams or for the fixed deposit, you need more.
Catalin: The limit is 2 million, the minimum investment.
Salman: Okay, that's good. Now, of course, everybody comes to Dubai and the UAE, especially for the real estate. Please tell our listeners what makes real estate so attractive for global investors in the UAE. And also, how safe is that investment in 2023, given the fact that as there's talk of a global recession and also there is a background of the global recession, especially in the context of the Middle East, which has seen some rough days in the early 2000s, if I can remember correctly. So give us that context, please.
Catalin: Yes. So currently, Dubai real estate market offers some of the most attractive rental yields in the world. Property prices per square feet are lower than many other major capitals of the world today. Apart from that, we have the environment which is for investors, which is a tax free income country, a high standard of living safety, world class infrastructure. It is having a strategic location, economic growth, stability in the region. And the most important it is that it is a regulated market compared with many other markets. You brought in discussion the challenges of 2000, which is which was a global recession. So I believe that that affected most of the countries in the world. And it was not a regional crisis or a challenge. However, Dubai has managed all these challenges and the latest, which has been proven to us, it is the COVID 19. So the government was extremely adaptable to the situation. And it has been overcome to most of the challenges. So we have not even felt the restrictions or the impact of the COVID. Like many other countries and talking about the real estate, just so you understand how the government of UAE has managed the situation during the period of lockdown, you were able to process a transfer of property while being at home. So this was unique in the world, and I've never heard that this type of process or services is available in any any of the countries.
Salman: So what do you mean by that? For example, somebody sitting in the US or in Europe could just file their applications while being in Europe, while being in the US without even visiting the UAE and buy property? Is that what you're saying?
Catalin: Yes, that is correct. So Dubai Land Department had an option of virtual property transfer, so they would have been organised videoconference between the parties where they were processing the transfer, identifying the parties and then exchanging the information of the transaction. So the transaction could be done while being online.
Salman: Right. But you know, still, I'm sure there are lots of due diligence processes that applicants have to fulfil and this is something which other countries also do. For example, if I remember correctly, countries like Portugal or Malta, what happens there is that you have to ask a lawyer to represent you on your behalf, and then they do the process for you. While you might be in some other country after you give a power of attorney or something. So I'm assuming that that sort of thing should be required in the UAE as well, isn't it?
Catalin: You can represent yourself as a resident on own resident in a transaction of real estate. So you do not need a local party or you do not need to provide a power of attorney. You can represent yourself. However, if you wish to delegate this service or this action to any of your trusted service providers, you can give this power of attorney to any of the lawyers, real estate practicant, or any of your family members to conclude this transaction.
Salman: Okay. That indeed sounds easier process. So then what happens after that? Say, for example, I put in half a million dollars in real estate and I put in my application. So in how much time will I get my long term residency, which you said is ten years?
Catalin: Yes. So you'll be able to get a ten years residency permit with an investment of 2 million. The government process are extremely streamlined to the customer satisfaction in the sense that within ten working days you'll be able to receive your Emirates ID and your visa issued ten years. We have recently pleased to conclude some of these transactions with with our customers.
Salman: Ten days sounds extremely quick. I'm really surprised to hear about that. So in ten days you're saying I can just buy property and become a long term residence? That is extremely quick. So is it just for one applicant or like for the entire families? This becomes a thing.
Catalin: So this is the process for the investor after completing the acquisition of the property. This is the process for him of obtaining the residency permit and the Emirates ID. Now, after he has successfully received both of these Visa and the Emirates ID, the investor might proceed with sponsoring any of his family members with no restrictions. And the advantage of the Golden Visa is that you can also sponsor the helpers around the house, whether you have a driver or maid or any of the workers around the house.
Salman: Okay. But tell me something in terms of how does one become eligible for the Golden visa? So you're saying that is it just like I have to just show the money and that's good enough? Because at the moment it seems for somebody, I'm sure sitting in the US or Europe, it seems a bit vague, the eligibility criteria, I mean apart from the money bit. So what is the other thing that the UAE is looking to determine that a certain investor meets the criteria?
Catalin: So as I was telling before, UAE, it is a very regulated market in both areas, whether it is a real estate investment or you choose to go to the public sector investment, if you decide to go for a real estate investment, you have to approach a real estate practicum, whether it is a developer or a real estate broker to help you find the right asset for you. And if you choose the other route, which is the fixed deposit with the bank, this is also very streamlined. All the banks, they are having the process available for opening a bank account for non-resident, for the purpose of opening a bank account for a fixed deposit and obtaining a golden visa. So both areas are extremely well streamed and regulated.
Salman: Right. But do they have to meet other eligibility criteria, as I don't know, like, for example, knowing the local language, like Arabic, they should know or I don't know. You know, different countries have different criteria. So is it just they should have enough money in the bank and that's good enough?
Catalin: What what we should know about it is, is that language. It is Arabic and English. And regarding the eligibility, we can note the fact that it's only the financial condition that requires to be met and there is no restriction on nationalities or age limit or anything else.
Salman: Okay, that's good. And now there's also a lot of buzz in the region about how the UAE also gives citizenship to long term. And so a lot of people are also interested in knowing more about this. Let's say somebody buys property there. Therefore, as a long term resident, then is it possible for them to become citizens? Is that the route or is it totally a different process?
Catalin: There are always rumors that citizenship will might be available soon for people which they have already applied for Golden Visa, but we do not have any official communication at the moment.
Salman: Okay. Because at the moment we see in the news that a lot of people are given citizenship in the UAE. There's a big splash in the news, local newspapers there that some celebrity got it or some other people are big investors actually are also getting it. So a lot of investors would be particularly interested in that angle as well. But you're saying that there is no roadmap to that at the moment?
Catalin: Yeah, there is no program in this way at the moment. There is a citizenship which is offered by exceptional by the rulers in here or the highest authorities.
Salman: Right. And you know that exactly what I was reading about, that there's exceptional talent and exceptional category. And that's a little bit vague for people who are in other parts that what exactly does that mean?
Catalin: It has been kept at the discretion of the authorities and the highest rulers of the area, how to assess them.
Salman: I see. Okay. So now let's talk also about the sales trends in the real estate. And given your sales background, I would like to know from you that what have you observed since 2019 when the UAE launched its Golden Visa, this residency program? So are you seeing people buying more residential flats or residential villas, or is there a trend towards buying commercial properties like hotels?
Catalin: So since 2019, we have seen that the real estate investment in Dubai have been rapidly gaining popularity among the overseas investors following the announcements of the UAE Golden Visa, The numbers of transaction in both sectors, residential and commercial, have been grown exponentially at the moment. The sweet spot of the real estate. It is in the off land market where the developers are competing each other in delivering the highest living standards in the industry that we know as of today.
Salman: Okay, and say an investor doesn't want to buy a personal villa or a property like that. He wants to or she wants to buy a hotel or invest in that. Is that something that they can do and gain the residency?
Catalin: Yes, definitely. Any of these real estate investments can satisfy the requirement of the Golden visa as long as they are at the threshold of a billion. Now, hotels, I would say there are more rewarding in terms of yield compared with residential or commercial. So for someone who purely wants a yield investment, I would highly recommend them hotel investment. However, if you require residential property where you want to occupy it yourself or your family, definitely you can go for residential project. Villa Communities. We have, as I was mentioning, one of the highest standards in master planning in here in Dubai and one of the newest technology in the areas most of the developers, they are competing in managing the communities again to the highest standards that we know in the industry.
Salman: Right. And another thing that most investors do is that they don't necessarily live themselves there. They buy properties, residential villas or flats, but then they would like that to be rented out and gain profit through that. So is that also possible?
Catalin: Yeah, that is correct. We have in here service provider which are called manager companies, they can do all this service for the overseas investors, the investor. They don't need to come in here or visit to sign the agreements for the maintenance issues of the property. So everything can be handled by this so called property management service providers.
Salman: Okay, good. Now tell me something about this thing that I also read called the Green Visa. Now, how is this green visa different from the Golden Visa? From what I could understand was that maybe the green visa is more suited for freelancers as as opposed to investors. Is that what it is?
Catalin: Yeah. The UAE visa is a type of residency visa Golden one, which allow the individual to sponsor himself for five years. So the difference is that this is only for five years. It is suitable for freelancer, self employed or skilled employed.
Salman: Can this green visa then be converted to a long term one? Eventually, if somebody stays there for five years, likes it and wants to stay for longer, period, they can do that.
Catalin: So the green visa can be renewed with the same condition that it has been given initially.
Salman: Okay, good. And I've also read that your wealthy retirees from all over the world are also being pushed towards considering UAE. So is there a special visa category for them?
Catalin: There is a five year long visa option for individuals who decide to retire in the UAE, and the requirements are similar to the investor visa or the Golden visa, which is acquisition of a real estate or investment into a public sector.
Salman: Good. Now we've talked about the different visa categories and the possible options that are available for investors and freelancers and retirees. But what about entrepreneurs, somebody who wants to establish a business in the UAE? Is there a separate category for them? How does one even go about setting up a business and gaining residency in the UAE?
Catalin: Yes, So this is a separate category. So if you want to open up a business, there will be a service provider in this regard for company formation depends on your sector, where you want, what you want to wait. There are certain regulations which need to be followed along with the company. You will be getting a residency permit for two years, which is renewable now while forming a company. If you have the capacity to inject up to 2 million in this company, you'll be eligible also to apply for a golden visa.
Salman: That clears up the options for all different kinds of people, I would say. So you're a sales guy. So let's talk about the challenges of sales. And this is something which I've been thinking that UAE regional competitor, if you look on the map, the first thing that one looks there is Turkey. Turkey is just around the corner and it has a lot of options. What do you have to say? How difficult a sell is Dubai for you?
Catalin: It is very clear to me and this is also what I am telling to most of the investors in here. We do not have a real inflation like in Turkey. This is one of the major driver, no risk of foreign exchange control. And the most important thing, which is not mentioned anywhere, UAE doesn't have a military service where Turkey has. So there is a big risk of military service going to Turkey or being a citizen or a resident of that country.
Salman: For the military service. But at least from what I know, is that only citizens have to do that. Foreigners are not really asked to do that sort of thing. And Turkey's advantage is that it offers citizenship. And that's where the advantage and the pros and cons are sort of very competitive with the way.
Catalin: I think Turkey. It is only a place for certain nationalities which you cannot apply. Or obtain a citizenship in any other countries. Other than that, I feel this inflation, which is currently happening over there and currency depreciation which they are experiencing, I think it is a high risk for most of the investors in today's market.
Salman: Right. But coming back to this point, do you think the passport and citizenship would come on the table for long term investors eventually? Because if you want to be competitive, that has to be there.
Catalin: Yeah, definitely. There is a market requirement and market push on this from the investors long term residence in UAE. So they are all dream of getting the first passport in the world because the UAE has been ranked the first passport in the world. So I think the government, the background that they are working on, putting a plan together on obtaining such a citizenship.
Salman: That's good to know. You run a residency by investment business, you're with a company that runs that. So what are your challenges and benefits of doing that?
Catalin: I think I am in the perfect place. This is a multi multicultural environment which is giving you exposure to many cultures and having the possibility to provide the services to many, many nationals. The other key point in this business, it is the efficiency of the government processes which are helping us a lot compared with the bureaucracy which we find it in other programs or other environments. If it is a challenge that I can I can name, I think, the huge number of competitors which is in the in the area. But I find it the environment, the challenges that we are finding in this industry to upgrade or upscale the standards that they are offered to the customers.
Salman: Did you have to change your business model during the pandemic? How is that COVID era for you?
Catalin: So Dubai all together and the rulers and the government of this country has been very fast adapted to the current situation. Within weeks we had most of the processes already online streamline, and we were able to execute from home any of the service, which during the normal days you could do it outside. It was available to do it from your comfort of your home.
Salman: Okay. So you were able to overcome those challenges. We are coming towards the end of the show, but I would still like to hear about the trends that you have observed, especially in terms of sales in the real estate. Are you in recent years seeing a lot of applicants from certain parts of the world? Like, for example, are you seeing applicants from the US? Are you seeing a lot of applicants from China? And in the context of the ongoing war in Europe, are you seeing now a lot of applicants from Russia who are heading towards Dubai for long term residency? If you could share something about that?
Catalin: Yes, definitely. The current situation with Ukraine has been impacted. This segment and this region. We have a good influx of Russian nationals, Ukrainians, Belarusians and within this area. This has been added big number of sales to this segment and we are still seeing citizens coming from countries like us, China not so much as the China was having still the COVID procedures in place, and it was extremely difficult for Chinese investors to travel and return back to China. So we have we didn't have so much of customers in that area. But definitely for US and the other countries in the Europe, they are contributing to this segment.
Salman: Right. And for listeners who are in the US especially, how would you sell them? I'm giving you an opportunity here to take the mic and address the high net worth individuals in the US and Europe. How would you sell UAE as a destination for long term residency to them?
Catalin: World class infrastructure and economic growth and stability and the regulated market. I think one of the biggest, biggest driver for everyone in the world today will be safety. And Dubai and UAE has been the country which is striving to zero crime rate, and it is successfully doing that.
Salman: Right. Thank you so much for sharing those insights with us. It was wonderful talking to you about the UAE long term residency market. And I'm sure the trends that you mentioned will continue to increase there because that region has always been of interest to a lot of investors. And now with this long term residency category, which did not exist just a few years back, a lot of people don't realize this, how huge that has made an impact in that region. So I thank you again.
Catalin: Thank you so much, Salman.
Salman: I'm now going to address our listeners. Please stay tuned to the show and talk to you guys next time and with more guests from all around the world. You've been listening to the investment immigration podcast by Uglobal.com. Join us again soon for more in-depth conversations exploring investment immigration opportunities from around the world.

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