Sponsor-free visas, pensions, may soon become a reality in Dubai

It suggests a package of five policy initiatives to sustain the growth of the financial sector and to spur foreign direct investments (FDIs).  Dubai — Sponsor-free visas, pensions and other measures can help boost the economy and attract global talent, the Dubai Economic Council has said. The government advisory body and Deloitte, in a recent policy package, has recommended state pension schemes for expatriates, sponsor-free visas for skilled workers, easing of foreign ownership and trading restrictions for companies in free zones to support business activity in mainland Dubai. The Council has also advised doing away with caps on mortgage amounts, easing criminal implications of bankruptcy and bounced cheques, simplifying residency rights processes and making travel procedures easy within the GCC. It suggests a package of five policy initiatives to sustain the growth of the financial sector and to spur foreign direct investments (FDIs). The advisory body said the government support is important for the creation and growth of SMEs and start-ups, improvement in trading capability, development of the financial services industry, enhancement of capital market activity, and formalising a regulatory framework. Analysts and consultants supported the Council’s proposals and said that these are definitely a step in right direction and would help Dubai reach the level of top global leaders like Singapore and Hong Kong. They said the proposal to introduce state pension funds and sponsor-free visas for highly-skilled expatriates will change the dynamics of the job market which depends heavily on expatriates. “Dubai has excelled in many areas ahead of countries like Singapore or Hong Kong to which Dubai is generally compared; there is always scope to improve further,” Atik Munshi, managing partner at Crowe Horwath, told. Regarding issuance of visas for highly-skilled expatriates without the need for a sponsor, he said the only distinction between residence visas currently in place is the validity of visas for investors or employees for three and two years, respectively. “This visa period is quite inconvenient for business owners who also have to travel frequently. The government can consider a longer visa regime for investors who have invested a considerable amount in the UAE,” he said. “Non-sponsored visas for skilled personnel and professionals can attract such persons to the UAE; it will also ease hiring and firing processes. Such non-sponsored categories have to be closely scrutinised as there is a possibility of misuse,” Munshi said. To improve the residency rights and security of employed persons, Munshi said most countries have a system of depositing the end of service benefits in a government-monitored bank account which gives a reasonable return on the deposit. “Here the employee is protected even if the company goes bust. In addition, there will be huge surplus funds with banks which can be productively utilised.” “Currently the gratuity entitlement of the employees is accrued in the employer company’s books and is paid on retirement or termination. Here there is uncertainty and insecurity for the employee plus there is no return on such amounts,” Munshi added. Jitendra Gianchandani, chairman and managing partner of Jitendra Consulting Group, said easing foreign ownership investment will certainly improve the UAE’s ranking in ease of doing business. “Easing bankruptcy law will give confidence to business community as well as banks. It’s long overdue,” Gianchandani said.   Khaleej Times