More than ever before, wealthy expatriates in the UAE as well as the world are pursuing citizenship options elsewhere as the most effective way to access previously inaccessible opportunities.
For wealthy foreigners in the UAE, residence and citizenship planning has become a popular and important investment.
Citizenship-by-investment (CBI) programs in many countries give families the opportunity to obtain an alternate citizenship, allowing them to travel freely to numerous destinations and settle in another country.
Over 100 countries in the world have some form of investment migration legislation in place.
Of these, about 30 residence-by-investment and CBI programs are running successfully.
However, in the Middle East, countries such as Kuwait and Oman have introduced versions of investment visas, which entail long-term residency but no full citizenship.
The UAE introduced a new visa system in 2021 that allowed foreign individuals to obtain long-term resident visas to live, work, and study in the UAE for five or 10 years, depending on the investment type.
However, this is not a permanent citizenship, as some Caribbean countries offer.
A major trend in the UAE
Residency and citizenship investments have become popular among expatriates living in the UAE, especially with those who have documents that do not allow them the freedom to travel without a pre-approved visa..
One of the advantages of getting a second citizenship for such individuals is having the security of a Plan B, especially during uncertain times.
The citizenship of a different country would allow them to migrate there to — for example — access primary healthcare, safety, and security.
“Over the past few months, we have seen a growing increase in UAE residents’ inquiries and interest in securing a Plan B and traveling visa-free around the world. Most of those are UAE residents that are citizens of Egypt, Lebanon, Pakistan, or India,” said Jeffrey Henseler, the founder of Passport Legacy, a UAE-based firm looking after residency- and citizenship-by-investment (CBI) applications.
“Emirati citizens enjoy the benefits of their powerful UAE passports. Since the UAE passport is ranked amongst the strongest globally, Emirati citizens do not seek such applications,” Henseler told TRENDS.
Border closures fueled demand
Two things impede global mobility today: border closures and delayed visa applications.
According to Henseler, “Delayed visa applications from embassies are still catching up from 2020, which means expats are unable to attend business conferences in Europe, the US , or Asia in a timely manner.”
He added: “Most of our clients come from countries whose passports limit their travel plans, especially for business or corporate meetings.”
Henseler went on to explain: “The top five nationalities are Nigeria, Lebanon, Egypt, Bangladesh, and Sierra Leone, from what we gather based on our private consultations.”
He said: “People of these nationalities, among many others, are looking intensely to invest in British Commonwealth citizenship and visa-free access to 160+ countries.”
Cost of acquiring a second citizenship
According to estimates compiled by Investment Migration Insider in 2019, the global residence and CBI market was valued $21.4 billion per year, and might generate $100 billion in revenue by 2025.
The cost of acquiring a second citizenship or permanent residency ranges from $100,000 to $2.5 million, the International Monetary Fund (IMF) estimated.
Requests from high-net-worth individuals (HNWIs) in advanced economies have risen sharply, with demand further fueled by discounts offered by some countries, the IMF noted.
Such programs were initially launched in the 1980s, when wealthy foreigners began to migrate to tax havens in the Pacific and the Caribbean.
Austria, Bulgaria, Cyprus, Egypt, Malta, Portugal, South Korea, Thailand, the UAE, the United Kingdom, Vanuatu, and most recently Bahrain have all implemented different versions of such programs.
Some countries require direct donations to government development funds.
Others mandate contributions to specific government debt instruments or investment in specific sectors, such as property or construction.
Yet others, like the UAE, offer golden visas for those establishing businesses, creating jobs, or adding to the society in a variety of meaningful ways.
Abu Dhabi offers exclusive benefits
The UAE introduced golden visas, which are valid for up to 10 years, to encourage exceptional workers and foreign investors to seek deeper roots in the country.
This includes professionals and researchers in the fields of science and knowledge.
The program is also open to talented creatives and athletes, as well as business and real-estate investors in the emirate.
Unlike most other types of immigration in the UAE, however, the golden visa does not require a foreign national to be sponsored by an established enterprise.
To encourage investment in the emirate, golden visa holders in Abu Dhabi are offered exclusive commercial benefits.
According to the Abu Dhabi Residents Office, a branch of the Emirate’s Department of Economic Development, they will be entitled to discounts and offers on cars, property, health care, hospitality, health insurance and banking services.
The goal, according to the statement, is to assist golden visa holders in assimilating into Abu Dhabi’s business community and to further stimulate investment in the emirate’s economic development.
The conflict in Europe
While Covid-19 and climate change drove wealth and investment migration in the past two years, the conflict in Europe has now emerged as a new factor, a report by residence and citizenship planning company Henley & Partners has said.
The Brexit effect is driving interest for investment migration among UK nationals, the company said.
The biggest growth in investment migration inquiries in Europe, however, came from Turkey, the report found.
On the other side, and while the conflict in Ukraine continues to intensify, it is important to note that Russians are now banned from applying for most of the programs, Henseler said.
“The citizenship by investment industry responded very quickly to the international sanctions, which are very important to keep the current visa waivers of the passports,” he explained.
“Similar sanctions were implemented for residency by investment countries.”