Property Residence Visa in Dubai and other Emirates

The good old days, many expatriates who purchased property in select areas of Abu Dhabi, Dubai, Ajman, Ras Al Khaimah, and Umm Al Quwain were able to obtain three-year residency permits. In these cases, the property owners were sponsored by the UAE master development company they had bought from.

Visas with property in Dubai

Freehold ownership in selected areas of Dubai was first introduced in May 2002, sparking the real estate boom. In 2006 the emirate's three master developers - Emaar, Nakheel and Dubai Properties - facilitated the issuing of three-year renewable residence visas to owners under a special arrangement with the Department of Residency

The law

The law states, "If the homeowner has no alternative means of sponsorship for a residence visa, the first owner may be sponsored by your master developer (Nakheel, Dubai Properties or Emaar) for residency in Dubai, UAE, subject to the applicable immigration laws of the country."

However, the purchase of a freehold property does not automatically qualify for a resident visa, officials say. "There is no direct link between property ownership and residence visas. Developers should not lure investors to the property sector with promises of a residence visa."

Cannot work in UAE

Those who have purchased property in Dubai and qualified for a residence visa cannot work in the UAE on that visa. Furthermore, the visa is renewable every three years. If you bring your family to your residence in Dubai, then you will need to get a family residence visa. Dubai residence permits are issued by the Dubai immigration authority. Work permits are issued by the UAE Ministry of Labour. Just as with spouse residence permits, student residence permits, investor resident permits, they are all residence visas that allow the holder to live in the UAE. If the holder wants to work, then their potential employer must apply for a separate work permit from the Labour department

Restrictions

A person will not qualify for a visa of any type in the UAE if you are a citizen of Israel, have an Israeli entry stamp in your passport or if your passport is valid for only six months or less.

Change in Ajman

Until recently, Ajman also issued visas to freehold property owners. According to a report in Gulf News earlier this month, the Ajman Naturalisation and Residency Department has stopped issuing and renewing investors' visas for freehold property owners in Ajman.

Sharjah's stance

Sharjah allows expatriates to invest in land, villa or an apartment for a maximum 99 years, but has never issued residency visas to investors.

The number

All expatriate purchasers of freehold property in the UAE are only entitled to own it for 99 years.

If you think your property is going to get you a visa, think again.

Residency visas were put on hold or suspended in around mid-2008 for most/all Dubai and Ajman property purchases. From 01 June 2009, the UAE will implement a new system of residence visas for UAE property owners which supersede the old property investor residence visa that was valid in Dubai, Ajman, and Ras Al Khaimah (previously there was no residence visa based on expat property ownership in Abu Dhabi). "Article 33 of the executive regulations of the entry and residency law for entry and residency of foreigners", and a new article, number 34, will be included in the by-law specifying the conditions of the new visa.

UAE multi-entry visa valid for 6 months at a time, permits multiple entries to the UAE, Commonly referred to as a residence visa but not clear if that's the official term. The difference in terminology might be significant.

Property owner residence visa can be renewed indefinitely but the visa holder must exit the UAE and re-apply. The applicant can apply right away rather than wait for a month outside the UAE, according to information on 05 May 2009. When the multi visit visa issued to a property owner expires abroad, his/her visa will be renewed at the airport at arrival." Cost of six-month UAE residence visa is AED 2,000. Renewal cost is the same. Minimum salary requirement of investor is AED 10,000 per month, or equivalent. Not clear if income must be sourced only from outside the UAE - conflicting reports seen.

Property value must be at least AED 1 million. Appears to be based on purchase price (evidence needs to be shown) rather than original price or current market value. Medical insurance is required for investor and family members applying for residence visa under property ownership scheme.

Property must be complete, and title deed in visa applicant's name has been obtained. Joint property owners cannot apply for residence visa (in contrast to the previous system which allowed first named owner to apply).

Direct family members (spouse, children) can be included under the property owner's sponsorship. Not clear if primary sponsor must be male, if there is an maximum age limit for children, or if family members can travel in and out of the UAE independently.

Property must be of an appropriate size to house family members if applicable i.e. a family of 4 is unlikely to be granted a visa if the property is a studio flat (not that there are many studios over AED 1 million in the UAE).

Property residence visa holders under the previous system must change their visa to the new system from 01 June 2009 otherwise they will be regarded as being in breach of UAE immigration laws .Property owners (and family) might be required to have to have a medical test as with other residence visas (visitors with short term entry permits do not have to do a medical test).

Unknown if property residence visa holders can apply for UAE driving licenses, bank accounts, telephone connections, etc. Other residence visa holders can, and previous property residence visa holders could. If the new visa is a "visit" visa rather than a "residence" visa, then probably not. Employment while on a Dubai property residence visa

In simple terms, any type question about UAE visas for work and residence can be answered by asking two questions.

Does the applicant want to live in the UAE? If yes, they need a residence permit from the immigration department.

Does the applicant want to work in the UAE? If yes, then they need a work permit from the labour department.

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UAE prepares laws to boost investment

Our laws are quite old and should be revised to cope with the current economic situation and to stand up to the market challenges, UAE Minister of Economy says

Dubai: The Ministry of Economy is putting the final touches to 12 new laws, which are part of a plan to modernise the legislative system and enhance the UAE business environment, in line with the UAE strategic vision for 2021.

During an event held by Dubai Chamber of Commerce and Industry, the Minister of Economy Sultan Bin Saeed Al Mansouri said: "Our laws are quite old and should be revised to cope with the current economic situation and to stand up to the market challenges, according to the fundamentals of justice."

He said the new laws seek to address concerns about commercial regulations and arbitration and to promote efficiency, transparency, and investor confidence in the business sector.

The Competition Law, new Companies Law, Auditors Law, Arbitration Law, Foreign Investment Law, Industry Law, Industrial Ownership, the International Intellectual Property Rights Organisation, Certificate of Origin Law and Anti-Fraud Law are some of the laws that have been drafted to strength the country’s legal infrastructure and boost the economy.

Various other ministries have also been involved in this process, for which the Ministry of Economy is responsible.

The minister added that, despite the fact that the economy has recently seen some challenging times, it appears to be on the road to recovery.

"The UAE has enough reasons to be confident. The trade and economic statistics show that the macro-economic fundamentals remain strong, although there's cautious optimism among the private sector," he said. "The liquidity situation has improved and we expect slow recovery in the next two to three years.

New bad cheque court urges changes in the law

A new Dubai court has been set up to specifically handle cases relating to bad cheques and has led to calls for a change in the law relating to bounced cheques, it was reported on Sunday.

Judge Ahmed Saif, chief justice of the Dubai Criminal Courts, said around 100 bad cheque cases are heard before the weekly court, The National newspaper reported.

It is a criminal offense to bounce a cheque in the UAE, but the increase in cases relating to this has led to calls within the legal community for a review of the law and how the cases are heard.

“People have to sign blank cheques to rent, borrow, purchase and do business in Dubai. If conditions make it the only method of [doing] business, the courts must not criminalise non-payment,” criminal lawyer Harun Tahlak is quoted as saying in the report.

“Article 401 of the UAE penal code needs to be changed or dropped. [It] states that one who defaults on a cheque with criminal intention can be jailed or fined. But the courts routinely sentence people to jail,” he added.

Fellow lawyer Ali Musabah from PanGlobe Advocates and Legal Consultants argued that the courts rarely issue fines for cheque cases and that jail time should only be for repeat offenders.

“I believe the courts should issue fines for first-time offenders [owing] small amounts. If a person was unable to repay his credit card or bank loan for good reason, he should be fined not jailed,” he told The National.

UAE bounced cheques rise in Q1 but value falls 25%

The number of bounced cheques reported in the UAE in the first four months of 2010 rose but the amount of money involved declined by 25 percent, it was reported on 19th of Aug 2010.

The value of invalid cheques stood at AED18.6bn compared with AED24.8bn in the same period of 2009, Central Bank data showed.

This is despite the total number of bounced cheques rising more than 8 percent during the same period to 588,570 in the first four months of 2010, Emirates Business reported.

While that number equated to one in every 18 cheques for the first four months of 2009, it now stands closer to one in every 16 cheques, the UAE website added.

In November 2009, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum issued a decree to set up a bounced cheques committee which will settle cases related to dud cheques in real estate transactions.Judgments pronounced by the committee will be decisive and unchallengeable, and the committee will be granted “a set of powers in order to discharge its duties properly”, he said.

Under UAE law bouncing a cheque is a criminal offence, which carries a prison sentence, although most instances involving small amounts are settled out of court