UAE Cabinet approved 5-year, 10-year visas for investors, entrepreneurs, talented expats

Shaikh Mohammad, Shaikh Mansour, Shaikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, Shaikh Nahayan Mabarak Al Nahayan, UAE Minister of Tolerance; Mohammad Abdullah Al Gergawi, Minister of Cabinet Affairs and the Future at the cabinet meeting.

The UAE cabinet on Monday approved the regulatory framework for the issuance of five and 10-year UAE residence visas to certain categories of applicants.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has announced on Twitter that the regulatory framework to start issuing long-term residence permits for investors, entrepreneurs, innovators and specialized talents is now in place. Departments in the UAE will now start receiving applications, he tweeted on Monday.

“The UAE has been and will remain a destination for talents... and land to fulfil the dreams of all pioneers", Shaikh Mohammad added in the tweet, as part of his announcements following a cabinet meeting held at the Presidential Palace in the capital on Monday.

The UAE Cabinet approved a long-term visa system for investors, entrepreneurs, specialised talents and researchers in the fields of science, knowledge and outstanding students to facilitate business and create an attractive and encouraging investment environment for the growth of business for investors, entrepreneurs and professional talents.

The decision aims to maintain the position of the UAE as an optimal business environment. The visa benefits also include the spouse and the children to ensure a cohesive family and social structure and to create a stimulating environment for stability and growth.

For investors

 

The provision defines two categories for investors:

• Investors in the property of a value of Dh5 million or more will be granted a residence for five years.
• Investors in public investments through a deposit, an established company, business partnership of Dh10 million or more, or a total investment of not less than Dh10 million in all areas mentioned - as long as non-real estate investments are not less than 60 per cent of the total investment - will be granted a renewable residency visa every 10 years.

For entrepreneurs

The decision also includes the terms to grant a long-term visa to two categories of entrepreneurs:

• Those having a previous project with a minimum of Dh500,000, or having the approval of an accredited business incubator in the country.
• Entrepreneurs will be granted a five-year visa with a possibility for upgrading to an investor’s visa provided they meet the requirements.

 The benefits of the entrepreneurial visa cover entrepreneurs, partners, three executive directors, spouse and children. The entrepreneur is allowed entry into the country for six months, multiple-entry visa period, with renewal for another six months.

For professional talents

The decision also includes provisions for granting a 10-year visa for specialized talents and researchers in the fields of science and knowledge for doctors, specialists, scientists, inventors and creative individuals in the field of culture and art.

 

The visa also covers the spouse and children.

All people categorized as professional talents are required to have a valid employment contract in a specialised field, which is of priority to the UAE. Depending on this field, the requirements can include a doctorate degree, publications or global organisation memberships etc.

How to Calculate UAE gratuity pay

Calculating your end-of-service (gratuity) pay is important. Knowing how the total sum is reached will help you identify any errors made by your company.

Contract types

A limited or fixed term contract is where the employee agrees to stay with the company for a certain number of years with a set end date. Resigning before the end of this period could mean one or all of these; a labour ban, loss of labour rights or even payment of compensation to the employer.

An unlimited contract has no such period clause or number of years, and therefore, has no end date. However, a notice period of one to three months is applicable for termination of contract from either side.

Gratuity pay is calculated based on the most recent salary paid into your account without allowances and/or bonuses. Check Article 134 of the Labour Law here to get clarification on what this constitutes.

If you are terminated from your job, unless you break the rules as stated in Article 139 of the Labour Law, the employee is still entitled to gratuity pay.

Calculations for Limited Contract gratuity pay

Less than 1 year of service

Leaving work before completing one (1) year of service means that you are not entitled to any gratuity pay.

Between 1 year and 5 years of service

The employee is entitled to full gratuity pay based on 21 days salary for each year of work.

5 or more years of service

The employee is entitled to full gratuity pay based on 30 days salary for each year of work.

Calculation example

Basic salary example: Dh10,000

a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh330.30

b. 330.30 x 21 = 6,936.30. So 21-days salary is Dh6,936.30 in gratuity entitlement for each year of service. Multiply this figure for every year of service for up to 5 years.

For 30 days calculation for those exceeding 5 years of service

c. 330.30 x 30 = Dh9,909. So 30-days salary is Dh9,909 in gratuity entitlement for each year of service – so long as the total figure does not exceed two years total salary figure.

Calculations for Unlimited Contract gratuity pay

Less than 1 year of service

Leaving work before completing one (1) year of service means that you are not entitled to any gratuity pay.

Between 1 year and 3 years of service

The employee is entitled to one third (1/3) of the 21-days gratuity pay.

Between 3 years and 5 years of service

The employee is entitled to two thirds (2/3) of the 21-days gratuity pay.

5 or more years of service

The employee is entitled to full 21-days gratuity pay.

Calculation example

Basic salary example: Dh10,000

a. 10,000 ÷ 30 = 333.30. Your daily wage is Dh330.30

b. 330.30 x 21 = 6,936.30. So 21-days salary is Dh6,936.30

Of this figure of Dh6,936,30, only 1/3 is payable if you have worked between 1 and 3 years, so the total gratuity pay would be Dh2,312.10.

Only 2/3 is payable if you have worked between 3 and 5 years, so the total gratuity pay would be Dh4,624.20.

The full Dh6,936.30 is payable if you have completed 5 years.

These calculations are not to be treated as law, they are for your reference only. For any disputes or further clarification, contact the UAE Ministry of Human Resources and Emiratisation.

Formula

1. Basic salary ÷ 30 = Daily wage

2. Daily wage x 21 = 1-year gratuity figure (Or x30 if applicable)

3. 1-year gratuity figure x years of service = Total gratuity owed

Only continue for Unlimited Contract calculation

4. Total gratuity owed ÷ 3 = One third (1/3) of total gratuity

5. Either take this figure (between 1 and 3 years) or multiply it by two (between 3 and 5 years)

6. For over 5 years, the total gratuity owed will be payable.

Calculate your gratuity here using this formula

Ministry Gratuity Calculator https://www.mohre.gov.ae/en/end-of-service-calculator.aspx

Emirates ID and visa at the same time from home

You will now be able to renew your Emirates ID and residence visa online at the same time, saving you precious time and money.

According to a senior General Directorate of Residency and Foreigners Affairs official, those who want to renew their Emirates ID and residence visa can fill up the application form online at the same time without the need to visit typing centres.

All residents have to do is visit the GDRFA app, Colonel Arif Al Shamsi, director general of GDRFA Sharjah said.

The app also allows you to apply for visit visas and residence visas from inside and outside the country, as well as track progress of applications.

Applications received via the app will be renewed within one to three days, compared to the two-week waiting time earlier.

Through the app, applicants can track the status of their visas and clarify their concerns via the chat feature linked to a customer service representative.

"The chatrooms also cater to the deaf and the blind and can process complaints, suggestions and other enquiries," the official said.

For companies and sponsors applying for the visas of their staff who are outside the country, procedures are completed within a week.

People on a three-month visit visa who no longer have to leave the country to extend their visas may also apply for the renewal online, at a fee of Dh500. However, they should allow enough time for processing and apply a few days before their visa expires.

To ensure the success of the application, all requirements must be submitted properly, including a clear scanned copy of the Emirates ID and a valid passport, among others.

For procedures where a medical fitness test is required, Lt Juma said that since the Federal Authority for Identity and Citizenship is linked with the health ministry's centres, test results are synced seamlessly.