Investor Visa vs. Golden Visa in Dubai: Understanding the Key Differences

 I am holding an investor visa in a mainland Dubai-based company and plan to buy a new house to make me eligible for the Golden Visa. What happens to my investor visa if I decide to get the Golden Visa?

 As an individual holding an investor visa in a mainland Dubai-based company, the prospect of obtaining a Golden Visa is undoubtedly enticing. The Golden Visa offers a pathway to long-term residency in the UAE, providing a host of benefits and privileges to its holders. However, the decision to pursue a Golden Visa raises questions about the status of one's existing investor visa and the implications of transitioning between the two.

 In the context of transitioning from an investor visa to a Golden Visa, it is important to note that the Golden Visa is typically granted based on specific criteria, such as property ownership. Therefore, if you decide to purchase a new house in Dubai to meet the eligibility requirements for the Golden Visa, it is likely that your investor visa will be affected.

 In most cases, obtaining a Golden Visa would supersede your existing investor visa, as the Golden Visa represents a higher level of residency status in the UAE. This transition may involve the cancellation or modification of your investor visa, as you would no longer be solely reliant on it for your residency rights in the country.

 Once you acquire your Golden Visa, you are granted a 6-month visa to enter the country before getting residency2. When you acquire your residence visa, you don’t need to stay in the country for long to maintain your status.

 Please note that this information is based on the rules as of early 2024 and may have changed. For the most accurate and up-to-date information, please contact the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) or the UAE’s embassies and consulates. For Dubai visas, contact the General Directorate of Residency and Foreigners Affairs - Dubai (GDRFAD).

This service allows the real estate investor owning a property the purchase value of which is equal to or more than 2 million AED at the time of purchase, to apply for a 10-years renewable residence permit. The husband or wife, children, and parents can be sponsored. In the event that a mortgaged property, a bank letter indicating 2 million AED paid amount as proof to be provided.

 How can I apply for a Golden Visa in Dubai?

Documents Required to Land department.

1- A passport

2- Availability of an e-Certificate of Title / Title deed

3- A personal photo

4- UAE ID (if any)

5- A copy of the current residence permit (if any).

 Charges for 10 years residency permit

1- AED 700 fee for medical examination

2- AED 1,153 fee for UAE ID (10 years)

3- AED 2,656.75 fee for confirmation of residency permit (10 years)

4- AED 4,020 fee for the Land Department

5- AED 1,155 administrative fee

The total is AED 9,684.75

 Family residence permit for 10 years

AED 5,668.50 fees

AED 318.75 fee for opening a family sponsorship file

A residence permit for the parents for 10 years

AED 5,668.50 fee for 10 years

Service Procedures:

Step I: A customer will move to a service center

Step II: A customer will submit the service requirements and pay the fees

Step III: A customer will perform a medical examination at the center

Step IV: Sending the residence permit of the applicant via e-mail

 However, it's important to consult with an immigration professional for specific advice on your situation. They can advise on any potential conflicts between your current visa and the Golden Visa based on your company's specific investor visa program.

New Unified Remote -Transform Court Proceedings in the U.A.E

 The chances of "Unified Remote" court hearings and investigations into one digital platform in GCC countries are looking promising, especially with recent developments in Dubai. The Dubai Public Prosecution (DPP) has announced a partnership with tech solutions provider e& Enterprise

Dubai prosecution and e&Enterprise are signing an agreement

to create a centralized digital platform that will streamline remote investigations and court hearings1. This initiative is set to enhance the efficiency of the justice system, promising faster processing times and a more efficient system overall.

 Scheduled for completion by 2026, the platform will be the first of its kind in the world and will include features such as centralized storage, archiving capabilities, and the capacity to schedule remote interviews and reserve spaces in multiple locations. It will also improve communication among prosecutors, lawyers, translators, witnesses, and other parties involved while maintaining strict confidentiality and privacy standards.

 This project represents a significant step towards a more accessible, efficient, and progressive vision of law in an interconnected and rapidly evolving world. It’s a clear indication that the GCC countries are moving towards modernizing their legal systems with the help of technology

 Unify remote court hearings, and investigations in one digital platform chances in GCC countries.

The chances of unifying remote court hearings and investigations into one digital platform in GCC countries are looking promising, especially with recent developments in Dubai. The Dubai Public Prosecution (DPP) has announced a partnership with tech solutions provider e& Enterprise to create a centralized digital platform that will streamline remote investigations and court hearings. This initiative is set to enhance the efficiency of the justice system, promising faster processing times and a more efficient system overall.

 How will this platform handle evidence presentation during remote hearings?

 The handling of evidence presentation during remote hearings in the U.A.E is guided by several regulations and protocols to ensure the integrity and effectiveness of the judicial process. Here’s how the platform is expected to manage evidence presentation:

 Virtual Litigation: The U.A.E courts have adopted virtual litigation to ensure justice is served while maintaining public health measures. This includes the use of electronic channels for court hearings, where evidence can be presented remotely.

Regulations and Amendments: Federal Law No. 5 of 2017 on the Use of Telecommunication in Criminal Proceedings allows the use of remote communication technology in criminal procedures, including evidence presentation involving all parties. Additionally, amendments to the Law on Evidence in Civil and Commercial Transactions have introduced remote communication technologies in evidence-related procedures.

Digital Pleading: The digital pleading process involves the exchange of defenses, arguments, evidence, and requests using memoranda, documents, previous judicial rulings, and evidence through a virtual platform.

Evidence Bundling Protocol: The DIFC Courts’ Virtual Hearing and Bundling Protocol provides guidance on how to prepare and present evidence during virtual hearings, ensuring that all relevant materials are accessible and presented in an orderly manner.

These measures are designed to maintain the standards of a fair trial, including the proper presentation and examination of evidence, even when proceedings are conducted remotely. The platform will likely incorporate features that allow for the secure upload, storage, and sharing of evidence, as well as functionalities to present evidence live during virtual hearings, ensuring that all parties have the necessary access and that the evidence is handled in compliance with legal standards.

 How will the platform handle the cross-examination of witnesses remotely?

Cross-examination of witnesses remotely presents unique challenges, especially in virtual court proceedings. Here are some considerations for handling cross-examination effectively:

 Virtual Setting Challenges:

Remote trials lack the physical elements of a traditional courtroom, such as atmosphere, live confrontation, and spectators.

The absence of these elements can impact both witnesses and lawyers during cross-examination.

The GCC Tourist Visa a new era of travel & business to the U.A.E and GCC

GCC Tourist

 The highly anticipated unified GCC tourist visa is poised to revolutionize travel in the region. By eliminating the need for separate visas for each country, this initiative will significantly boost travel, where business trips are extended for leisure pursuits. Visitors can seamlessly explore the diverse offerings of all six GCC nations – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – on a single visa, much like the Schengen Area in Europe.

The Unified GCC Entry Permit is an anticipated online visa system designed for GCC residents and their companions, facilitating entry into the UAE. As of May 9, 2024, this permit is in the pipeline and is slated for launch by the end of 2024.

This, coupled with the growing appeal of the GCC's tourist attractions and streamlined visa processes, is attracting a new wave of tourists. Furthermore, the region's burgeoning MICE (Meetings, Incentives, Conferences, and Exhibitions) sector in major cities is drawing increased business travel to the UAE. As a result, the hospitality, travel, and tourism industries are experiencing a surge in demand.

The Unified GCC Entry Permit is a system that streamlines the visa application process for GCC residents and their companions traveling to the UAE. This online platform allows individuals to conveniently apply for a visa from the comfort of their own homes, eliminating the need to visit embassies or consulates in person. 

Advantages of the Unified GCC Entry Permit:

• Simplified Travel: Eliminates the need for multiple visas for each GCC country, streamlining the travel process.
• Tourism Boost: Expected to enhance the region’s appeal as a tourist destination by simplifying travel across the six nations.
• Extended Duration: May offer the possibility of stays beyond the current limit of 30 days.
• Key Aspects of the Permit:
• Validity: Grants a 30-day stay, extendable for an additional 30 days

By simplifying the visa application process, the Unified GCC Entry Permit promotes ease of travel and enhances the overall experience for visitors to the UAE. This system not only saves time and effort for applicants but also ensures a more efficient and organized visa issuance process.

 Furthermore, the Unified GCC Entry Permit reflects the commitment of the UAE government to fostering strong relationships with its GCC neighbors and promoting regional cooperation. By facilitating travel for GCC residents, this system contributes to the growth of tourism and business activities in the UAE, ultimately benefiting the economy and strengthening ties within the Gulf region.

 In conclusion, the Unified GCC Entry Permit is a valuable tool that enhances the travel experience for GCC residents and their companions visiting the UAE, showcasing the country's dedication to innovation and efficiency in its visa processes. 

Important Guide for Ex-pats -Property Laws in Saudi Arabia

 Eligibility for GCC Nationals and Companies: Nationals of the Gulf Cooperation Council (GCC) and GCC-owned companies have the privilege to own land in Saudi Arabia, albeit with certain limitations. These entities can lease or acquire land for conducting licensed business operations and may possess residential properties, except in areas near Mecca and Medina.

Foreign Ownership Regulations: Non-GCC nationals and companies not entirely owned by GCC nationals are granted specific rights to own property in Saudi Arabia. The acquisition of real estate by foreigners is governed by the Foreign Ownership of Real Estate Regulation, established by Royal Decree No. M/15 on 17/04/1421H (19 July 2000). Foreign investors are allowed to own and invest in property, contingent upon securing an investment license from the Saudi Arabian General Investment Authority (SAGIA). 

Development and Investment by Non-GCC Entities: Non-GCC development firms may own property linked to specific development projects, provided they meet SAGIA’s licensing requirements. The construction must be investment-driven, aiming for sale or lease, and executed by a contractor licensed in Saudi Arabia.

Real Estate for Business and Residential Use: Non-GCC entities can own property necessary for their business operations, including headquarters and storage facilities. They may also own residential units for their employees or for personal use by individuals with legal residency.

Restrictions in Holy Cities and Specific Locations: Foreign-owned entities cannot acquire property rights within Mecca and Medina’s city limits. Additional restrictions apply as per the Saudi Council of Ministers’ resolutions and royal decrees, which prohibit real estate acquisition in certain designated areas.

Legal Residency and Ownership: Foreign individuals with legal residency status in Saudi Arabia may own property if they obtain a permit from the Ministry of the Interior. It’s important to note the stringent anti-fronting law in Saudi Arabia, which should be considered when structuring investments through an entity.

Land Registration and Titling System: The Realty in Kind Registration Law, decreed by Royal Decree No. 6 on 9/21423H, aims to establish a clear and transparent system for land identification and registration, which will eventually encompass all the Kingdom’s real estate. This initiative is supported by:

The Law of General Survey Authority

The System of Ownership of Units and Estates, issued by Royal Decree No. 5 on 11/2/1423H (24 April 2002)

Despite these laws, the current system is somewhat unstructured and resembles a deeds system, where ownership is traced through contractual agreements, and changes in ownership are recorded by the First Notary Public in a register maintained by the Ministry of Justice. Practices may differ across regions, and unique regulations may be in place for Economic Cities.

Economic Cities and Foreign Registration: Saudi Arabia is developing several economic cities, including King Abdullah Economic City, Knowledge Economic City, Prince Abdulaziz bin Mousaed Economic City, and Jazan Economic City. The Economic Cities Authority has set forth regulations for registering foreign companies and land titles for foreign entities within these cities. 

REITs and related real estate regulations in Saudi Arabia:

Introduction to REITs in Saudi Arabia: In 2016, the Capital Market Authority of Saudi Arabia established regulations to facilitate the creation of Real Estate Investment Traded Funds (REITs) on the Saudi Stock Exchange (Tadawul). This move aimed to diversify the real estate investment landscape, inviting a broader spectrum of investors. The regulations encompass the governance, functioning, and proprietorship of REITs. 

Investor Participation in REITs: REITs are accessible for investment to Saudi nationals, GCC citizens, and expatriates residing in Saudi Arabia. Additionally, non-resident international investors have the opportunity to trade REIT units on the Tadawul. 

Regulations on Off-Plan Property Sales: The 6th of September 2016 marked the enactment of Resolution No. 56, which introduced the Regulations on the Sale of Off-Plan Real Property. This legislation enhances consumer safeguards concerning off-plan property transactions.

Developers are mandated to register their projects with the Off-plan Sale Committee at the Ministry of Housing, demonstrating financial competence and securing adequate protections, notably through escrow accounts, to ensure funds from buyers are allocated correctly to the respective projects.

A consulting office, certified by the Saudi Council of Engineers, oversees construction progress, delivering quarterly technical updates until the project’s completion.

 Real Estate Mortgage Legislation: The Registered Real Estate Mortgage Law, promulgated in 2012, was designed to establish clarity regarding the precedence of debts secured by registered mortgages, eliminating the previous practice of banks taking temporary title transfers from borrowers.

A pivotal element of this law is its adherence to Sharia-compliant financing, as the secured debt must not be associated with conventional interest-bearing finance under the laws of Saudi Arabia.

Management of Jointly Owned Property: The governance of jointly owned properties is outlined in the Law of Proprietorship and Sorting of Real Estate Units, enacted by the Council of Ministers Resolution No. 40 and further supported by Royal Decree No. M/5, both dated 09/02/1423 AH, along with subsequent amendments and Executive Regulations.

These laws establish a framework for the formation and administration of homeowners’ associations, ensuring industry-standard management of common areas, association funds, and collective assets. While the application of these laws varies, developers often maintain a managerial role in such properties.

With the anticipated rise in apartment ownership, the Ministry of Housing is increasingly involved in endorsing and overseeing homeowners’ associations, having recently issued a Bylaw delineating optimal practices for the associations’ internal management. 

Understanding VAT and Real Estate Services in Saudi Arabia

Value Added Tax (VAT) Implementation: Saudi Arabia, in unison with the United Arab Emirates (UAE), pioneered the introduction of Value Added Tax (VAT) within the Gulf Cooperation Council (GCC). Effective from 1 January 2018, VAT applies to various transactions.

VAT Rates on Real Estate: Commercial real estate transactions are subject to a standard VAT rate of 5% annually, similar to the UAE. However, unlike the UAE’s initial zero-rated supply, residential real estate in Saudi Arabia is also standard-rated. The exception lies in residential leases, which are exempt from VAT.

VAT Exemptions: The sale of occupied commercial buildings might be considered a business transfer, thus potentially exempting it from VAT obligations.

Etmam – Developers Services Centre: Etmam is a governmental initiative designed to streamline the process for real estate developers at different project stages. It includes key ministries as permanent members and acts as a facilitator to prevent delays in licensing and approvals for large-scale residential and commercial developments exceeding 50,000 square meters.

Etmam’s Support Services Include:

• Land subdivision approvals
• Comprehensive development plan approvals
• Building permit issuances
• Building completion certificate issuances
• Off-plan sales license issuances
• Off-plan marketing license issuances within Saudi Arabia for projects abroad

Etmam encourages developer interaction and regularly convenes meetings to address project challenges and enhance service quality. 

Ejar – Rental Service Network: The Ministry of Housing’s Ejar platform is a digital rental service network that simplifies property renting processes. Through its app, users can:

1. Locate licensed real estate agents
2. Verify identities of landlords and tenants before finalizing tenancy agreements
3. Confirm property ownership and the authority of landlord representatives
4. Report any infractions to Ejar’s supervisory team, such as overcharging by brokers, commission on tenancy renewals, rent manipulation, or failure to register tenancy agreements on the Ejar network.

Real Estate General Authority

The Real Estate General Authority was established by the Council of Ministers Decision No. 239 of 25/4/1438. Its primary objectives include enhancing transparency, promoting investment, and safeguarding consumer interests within the real estate industry.

Key initiatives undertaken by the Authority include:

Transparency Enhancement:

Developing price indicators (for both sales and rentals).

Monitoring construction progress through relevant indicators.

Benchmarking and Best Practices:

Conducting local and international comparisons.

Learning from reputable real estate regulators worldwide (including Australia, the United States, Hong Kong, Singapore, and the United Arab Emirates).

Proposing regulatory changes to streamline property dispute resolution.

Capacity Building:

Organizing training programs and accredited courses.

Elevating skills and quality among stakeholders in the real estate market.

 Idle/White Land Tax Law

The Saudi Arabian government has introduced a tax on undeveloped urban land, commonly referred to as “white lands.” The objectives of this tax are as follows:

Land Availability and Balance:

• Encourage land development to strike a balance between supply and demand.
• Facilitate the availability of residential land at reasonable costs.
• Fair Competition and Monopoly Prevention:
• Promote fair competition by discouraging land hoarding.
• Combat monopolistic practices related to vacant land.

Tax Rate and Impact:

Non-government-owned vacant lands are subject to an annual tax rate of 2.5% based on the land’s value.

While not excessively high compared to similar land taxes elsewhere, it encourages landowners to utilize their properties for income-generating purposes.

 Exciting Developments for Foreign Investors in Saudi Real Estate

 A Welcoming Change: If you’re a foreign investor eyeing the Saudi real estate market, there’s promising news on the horizon. Saudi Arabia is crafting new property ownership regulations that will expand the rights of non-Saudi nationals to own a wider array of real estate assets.

Announcement from the Top: Abdullah Ahmed, the leader of the Real Estate General Authority (REGA), unveiled these plans in March 2023, signaling a significant shift in the Kingdom’s economic diversification efforts.

Awaiting Details: While the finer points of these regulations are still under wraps, the final touches are being applied, and a public announcement is imminent. Rest assured, we’ll bring you the latest updates and insights into the new law as soon as it’s enacted. Customers who have invested in the Saudi Arabia Property Pack will receive a detailed breakdown to navigate the changes with ease.

A More Inclusive Framework: This legislative move is set to create a more expansive and welcoming property ownership environment for international investors, surpassing the limitations of the existing system.

Current Restrictions: Presently, Saudi legislation restricts foreign ownership in the sacred cities of Makkah and Madinah.

Anticipated Reforms: The anticipated reforms, however, are poised to open up ownership rights to foreigners across the Kingdom, including the revered cities of Makkah and Madinah.

Diverse Property Types: The scope of these new rights is expected to cover an array of property categories, including commercial, residential, and agricultural real estate, offering a wealth of opportunities for foreign investment.

 Conclusion

Saudi Arabia’s Vision 2030 is poised to create significant opportunities in the real estate sector. As the country aims to become a leading global real estate jurisdiction, additional regulations and guidelines will be issued to align with international best practices. These developments will contribute to stimulating development, increasing affordable housing, and fostering a dynamic real estate market in the Kingdom. 

How can an expat owner secure his company's future after his sponsor dies in the U.A.E?

The sponsor of the company Passed away

 Here's how an expat owner can secure their company after the sponsor passes away in the U.A.E

Understanding the Situation:

• Sponsor vs. Ownership: It's crucial to distinguish between the sponsor and the owner of the company. While the sponsor is responsible for visa sponsorship, the expat owner may hold full legal business ownership.

Immediate Actions:

1. Inform Authorities: Notify the relevant authorities, including the Department of Economic Development (DED) and the General Directorate of Residency and Foreign Affairs (GDRFA), about the sponsor's passing.
2. Continue Business Operations: The expat owner, if holding a valid residency visa, can continue managing and operating the company.

Ownership Transfer and Legal Considerations:

1. Probate Process: The deceased sponsor's estate, including any ownership stake in the company, will undergo probate. This process determines the legal heirs and their inheritance rights.
2. Ownership Transfer: Once the heirs are identified, the expat owner may need to negotiate with them to acquire their shares or reach an agreement for continued ownership. This may involve legal procedures to update ownership records with the DED.
3. Visa Sponsorship:
• Temporary Grace Period: The GDRFA typically grants a grace period of 30 days after the sponsor's death for the expat owner to regularize their visa status.
• New Sponsor: The expat owner will need to secure a new sponsor for their residency visa. This could involve finding a new business partner, a family member within the UAE, or utilizing alternative visa options like freelance permits or establishing a company in a free zone.

Seeking Legal Advice:

Consulting with a lawyer specializing in UAE business and immigration law is crucial. They can provide guidance on:

• Navigating the probate process and potential inheritance claims.
• Negotiating ownership transfer with the heirs.
• Complying with visa sponsorship requirements and securing a new sponsor.
• Addressing any other legal or tax implications arising from the situation.

Important Points:

• The specific process may vary depending on the ownership structure of the company, the sponsor's nationality, and the presence of a Will.
• Acting promptly and seeking legal counsel is essential to secure the company's future and ensure the expat owner's continued residency status in Dubai