Resident visa rule change in UAE -house rent contract requiered for renewing the Visa

Foreigners residing in Abu Dhabi as well as those who work in the capital and live in other emirates must also present a rent copy along with other documents required for their visa extension, the semi official Arabic language daily Alitthad said, quoting Major General Nassir Al Minhali, Ministry of Interior assistant undersecretary for naturalization and residence.

“All expatriates in the UAE are now required to submit a copy of their house rent contract when they want to have their visa renewed…they should also present valid water or power bills to support that contract,” he said.

“This is part of a new data system enforced by the Ministry of Interior…we need accurate and comprehensive data regarding the expatriates residing in the country…this is very important as this data base will also serve applicants in their dealings with other departments,” he added.

He said the new term affects families and bachelors and that residents of other emirates are also required to submit a copy of the rent contract.

“Those who work for Abu Dhabi-based companies and live in other emirates must bring a copy of the contract of their rent in those emirates…expatriates seeking to have their visa renewed in Abu Dhabi are not required to be living in the emirate…all they have do to is to bring a copy of their rent contract.”

Typing centres confirmed that the requirements are the same in other emirates, too. The Immigration Department has a new documentation requirements for  individuals sponsoring dependents whether it's a new visa or renewal, documents are: Original tenancy contract attested by the municipality of the Emirate (Abu Dhabi, Dubai, Sharjah etc.).  The tenancy contract must be under the name of the sponsor. Also needed is the latest electricity bill or if it is a new contract, the deposit receipt.

This new policy also applies to sponsoring housemaids, drivers, parents, etc.

Some expatriates who share apartments are unhappy with the new rule. Some of them are of the opinion that this will add undue pressure to their budgets, as they will now have to look for independent accommodation. Said one extremely disturbed worker, "I earn just about Dh4,500 and have to support a family of 16 back home. With this new rule, I'm very uncertain of my future."

Meanwhile, some are optimistic the rule will be amended considering the hardships it would entail on numerous expats. One resident said: "My visa is valid for more than a year. Am sure by then there would be more amicable amendments made to the rule."

More than seven million expatriates are believed to be living in the UAE, with a total population of around 8.2 million in mid 2010, according to the Statistics Bureau.

UAE set to have its first anti-corruption law to end financial malpractices and corruption

The UAE is set to have its first anti-corruption law as the second largest Arab economy is pushing ahead with plans to become more transparent and end financial malpractices and other offences related to corruption.

The state Audit Bureau will enact the Gulf country’s first anti-corruption law as per instruction by President His Highness Sheikh Khalifa bin Zayed Al Nahyan to fulfill the country’s commitment to UN charter on corruption.

“The Bureau will draw up an anti-corruption law and we urge all competent departments to join hands to ensure this law will see light and is implemented successfully,” the Bureau’s chairman, Hareb bin Saeed Al Amimi, said.

“This law will greatly support the UAE’s efforts to fight corruption and related offences, protect public funds and better utilize national resources for comprehensive development,” he told the semi-official daily Alittihad.

The Bureau is currently the UAE’s sole anti-corruption authority. Created by late President Sheikh Zayed bin Sultan Al Nahyan, it has played a major role in safeguarding public funds and curbing financial malpractices.The Bureau has recorded many cases involving misappropriation of federal finds since it was set up in the 1990s and has succeeded in recovering large sums of money wasted by some departments although it had not reported any arrests.But in a recent statement, the Bureau said it had detected more illegal financial operations at federal offices and informed the attorney general about such offences and those involved so they can be prosecuted.

“Over the past year, we have uncovered some financial abuses related to corruption and misappropriation of funds at federal level….several employees are involved in such operations and they are have been referred to the public prosecutor,” Amimi said in press remarks in 2011.

“We are pursuing our monitoring assignment at the instructions and with the support of the supreme authorities…we will exert strenuous efforts to preserve the public funds in line with the intensified measures undertaken by the UAE to combat all forms of corruption and other financial offences.”

In another statement earlier, the Bureau said it had unveiled major fiscal offences at federal government establishments involving nearly Dh300 million in fiscal year 2007-2008  but said all the funds had been recovered. It said many civil servants were involved in what it described as illegal financial practices.Officials said recently cases involving abuse of public funds have sharply declined thanks to intensified auditing and anti-corruption measures.

As a result, the UAE has been classified by several global rating and research organization as having one of the lowest corruption rates in the developing world. Other Gulf oil produces have taken measures to set up the war against corruption following the 2008 global fiscal distress.Saudi Arabia, the largest Arab economy and the world’s oil powerhouse, announced last year the establishment of an anti-corruption body on orders by King Abdullah following reports of widespread financial offences.

Other Gulf countries said they were taking steps to widen anti-corruption measures and boost transparency at public departments.“The instructions by the President to issue the anti-corruption law illustrate the leadership’s keenness to combat financial malpractices, which are alien to our society and to curb any practices that violate Islamic law,” Amimi said.ends

Employee six months out of country for Labour Card cancellation

UAE employees who stay outside the Emirates for more than six months can have their labour cards cancelled. This was revealed at the weekly labour ministry meeting, according to 'Al Ittihad' newspaper. Companies must submit proof of absence along with documents of due settlement. The ministry officials refused to accept an employer's request to cancel an Arab's labour card who has been outside the country for only five months.

The company was asked to wait for another month and then submit the proof of the worker’s absence to the department of naturalisation and residency along with  documents to prove settlement of all his dues. Only then can the employer apply  for cancellation of the worker's labour card.

Amending Labour Contract

Addressing another case, ministry officials clarified that companies can amend  labour contracts - change names of professions or salaries - only in the presence of the  employees concerned. Else it will be considered a violation of labour rights.

Temporary work permit

Issuance of temporary work permits would depend on the type of labour dispute and  would be considered by the ministry only once the case has been referred to the  labour court. Once the terms and conditions as stipulated by the labour laws are adhered to, the ministry reserves the right to issue temporary work permits without the approval of employers. Similarly, the worker in dispute, need not necessarily have a residence visa provided it is proved that the case has been  referred from the labour court.

Job transfer

Workers under three skill levels can end their contract without an agreement with  the employer even before completing two years. They include employees who have a  bachelor's degree and earns a minimum Dh12,000; or diploma holders with Dh7,000  monthly salary; and those who possess secondary school certificate earning  Dh5,000.

Meanwhile, officials approved a request of a company to hire as director a British  who has no university degree but holds a certificate from a institute which he  attended for three years after high school.

Explaining its decision, the labour committee, including Khalil Khouri, Director  of work permits, and Saleh Al Jabri, Director of the Unit of facilities in Abu  Dhabi, said in this case the employee has 10 years’ experience in the same job at  the headquarters of the company in his country.

UAE plans to provide multiple entry visa for cruise tourists

The United Arab Emirates may provide multiple entry visa for cruise tourists from September, sources disclosed. The issue was under discussion for almost three years.

“It is finally expected to be in place by September,” a senior official of Dubai Department of Tourism and Commerce Marketing (DTCM) disclosed.

“We have reemphasized the importance of having implemented a multiple entry UAE visa for the cruise tourists to the highest level and it is under way. Hopefully, we will have a positive feedback before the next cruise season commencing in October this year,” Hamad bin Mejren, DTCM Executive Director of Business Tourism, said at a press conference recently.

The UAE has the most modern and the largest cruise facility in the GCC, spanning over a 12,000 sq m with a dedicated pier length of 2000 meters with the capacity to accommodate five to six cruise ships simultaneously.

The current visa process imposes financial burden as well as a lot of documentation procedures for the tourists of nationalities who are not on the list of countries whose citizens get visa on arrival. The multiple entry visas will help in removing such obstacles and will create a wider marketing perspective to bring tourists from key source markets such as Russia, China, India, South Africa, Brazil and other emerging markets.

Dubai Cruise Terminals, managed and operated by DTCM for the government of Dubai, catered to 396,500 cruise tourist who arrived from 108 ship calls in 2011. This year, Dubai is expected to see 420, 000 cruise tourists to the emirate, giving a big push to the tourism growth and the economy. The projections for 2013 are 125 cruise ships and 450,000 passengers and in 2014 the number of cruise ships and passengers will be 135 and 475,000, respectively. In 2015, this number will go up to 145 cruise ships and 500,000 passengers.

UAE reaping the benefits of its early efforts to diversify the economy IMF Staff Report for UAE - 2012

The UAE economy is gradually recovering from the 2009 crisis. The banking sector was strengthened through significant capital injections, and some progress has been made in restructuring the debt of government-related entities (GRE). The ailing real estate sector is beginning to find bottom but, given the ongoing oversupply, an early and broad-based recovery of the sector remains unlikely.

Outlook and risks. The recovery of the nonhydrocarbon economy, however, looks set to continue this year, backed by strong trade, tourism, logistics, and manufacturing, and helped by high oil prices. With limited near-term potential for further increases in real oil production, overall GDP growth is expected to moderate to 2.3 percent. Downside risks relate to a possible increase in regional geopolitical tensions, a potential decline in oil prices, a renewed worsening of global financial conditions, or a marked slowdown in Asia.

Macroeconomic policy mix. The UAE plans a gradual fiscal consolidation this year which will help unwind the fiscal stimulus of recent years and lower the currently high fiscal breakeven oil price without undermining the economic recovery. The planned fiscal consolidation will also increase the room for maneuver in case the downside risks materialize. Monetary policy will stay appropriately accommodative under the U.S.dollar peg.

Government-related entities. The GREs continue to face financial challenges in light of their high debt and rollover needs. Further deleveraging and strengthening of impaired GRE balance sheets is needed. Improving GRE corporate governance and increasing transparency about their financing strategies, financial conditions, and debt profile would be important to strengthen market confidence. Channeling bank funding to non-viable GREs should be avoided.

Financial stability. The banking system maintains significant buffers to withstand a further deterioration in asset quality and external liquidity conditions. The central bank should nonetheless continue to closely monitor banks’ liquidity and capital buffers as individual banks could be affected if downside risks materialize.

Statistics. Effective policymaking is contingent on timely and accurate data, rendering further improvements in the statistical framework important

BACKGROUND

1. Following the 2009 crisis, the economy has been slowly recovering and repairing its balance sheets. The Dubai World debt restructuring was completed, but several other troubled government-related entities (GRE) are still in the process of restructuring. The authorities strengthened the banking sector through liquidity support, recapitalization, and deposit guarantees, and the emirate of Abu Dhabi provided financial support to the emirate of Dubai. The Dubai Financial Support Fund (DFSF) was called to support troubled entities in the emirate and has now almost exhausted its funding of $20 billion.

2. The UAE has been reaping the benefits of its early efforts to diversify the economy. As the UAE developed into a major services hub in the Middle East, its dependency on oil exports declined markedly.

Based on its well-developed hospitality and services sectors, tourism, transportation and logistics have been major drivers of the post- 2009 recovery. The UAE has also been benefiting from high oil prices and strong growth in Asia. As a result of its perceived safe haven status and developed services sector, the country benefited from an increase in demand for property by expatriates and a

surge in tourism in the wake of the turmoil in the MENA region that began last year.

Recent Developments

3. The economic recovery continued and the external position strengthened significantly in 2011. Real GDP growth reached an estimated 4.9 percent, supported by high oil prices and production in response to disruptions in Libya. Nonhydrocarbon growth also strengthened, to around 2.7 percent, backed by strong trade, logistics and a surging tourism sector, despite the continued weakness of the construction and real estate sectors in the aftermath of the 2009 crisis. Backed by high oil prices and buoyant Nonhydrocarbon exports, the external current account surplus increased markedly, to around 9 percent of GDP. Inflation remained subdued at an average of 0.9 percent in 2011, mainly due to a continuing decline in housing rents and limited pass-through of international food prices.

4. The large property overhang continues to be a drag on the economy. Since mid-2008, real estate prices have fallen by more than 60 percent in Dubai, and to a lesser extent in Abu Dhabi. The large supply overhang and the completion of additional projects in the coming years render an early and broad-based recovery of the sector unlikely (Box 1).increased its current and development expenditures, and extended substantial financial support to Aldar, its flagship real estate developer.2 Following a contraction in 2010, Dubai’s deficit increased slightly in 2011, mostly on account of further spending from the DFSF. Nonetheless, high oil prices led to an improvement in the consolidated overall balance from a deficit of 2.1 percent of GDP in 2010 to an estimated surplus of 2.9 percent of GDP in 2011.

 5. The recovery was supported by an expansionary fiscal policy. The consolidated government nonhydrocarbon primary deficit (including loans and equity) rose to nearly 42 percent of nonhydrocarbon GDP in 2011 (from 36 percent in 2010), as Abu Dhabi increased its current and development expenditures, and extended substantial financial support to Aldar, its flagship real estate developer.2 Following a contraction in 2010, Dubai’s deficit increased slightly in 2011, mostly on account of further spending from the DFSF. Nonetheless, high oil prices led to an improvement in the consolidated overall balance from a deficit of 2.1 percent of GDP in 2010 to an estimated surplus of 2.9 percent of GDP in 2011.

6. Supported by accommodative monetary policy, banks remained amply liquid but private sector credit growth did not pick up. In light of low U.S. interest rates, monetary policy stayed accommodative under the fixed exchange rate regime. Lending to the private sector has nonetheless remained sluggish and lagged behind the recovery in credit growth in neighboring GCC countries, as

excess capacity in the real estate sector and the debt overhang still limit lending opportunities. Despite a continued rise in nonperforming loans (second highest level among GCC countries), the banking sector has remained well-capitalized and profitable, as the net interest margin has remained

comfortable. In October 2011, the authorities quickly resolved Dubai Bank through a takeover by Emirates NBD bank

1 The Dubai Financial Support Fund, financed in equal parts by the central bank and Abu Dhabi, was established in 2009 to provide financial support and liquidity to government and government-related entities undertaking projects of strategic importance in Dubai.

2 The consolidated government comprises the federal, Abu Dhabi, Dubai, and Sharjah governments accounting for over 99 percent of total UAE fiscal expenditures.

3 In connection with this transaction, Emirates NBD received a Dh2.8 billion deposit from the ministry of finance. The government of Dubai has provided a guarantee—with a fair value of Dh768 million—for any losses relating to existing assets for seven years.