New Visa For Expat Retirees in UAE
The UAE government has announced a new law which states that expats aged 55 and over may secure a retirement visa – which may affect how retirees in the UAE decide to live post-employment.
The approved law will allow expats or non-Emiratis to stay in the UAE after retirement, should they meet any of the following requirements:
- AED 2 million of property value;
- At least AED 1 million in savings;
- or an active monthly income of minimum AED 20,000.
The new visa regulations will be implemented in 2019.
The new law is expected to especially leave a positive impact on life insurance and management consulting sector, as it encourages more products such as investment packages with high returns in exchange for monthly premiums.
The approved law by the government certainly encourages more expats, who make up most of the country’s population, to stay in the UAE after retirement.
The visa development is deemed beneficial to those who have set up businesses and/or own property in the UAE. With the retirement visa, expats would no longer worry about leaving the country once they reach the retirement age.
Additionally, the UAE property market is also expected to experience a boost as the visa may lead to more expats investing in family homes. Many expats usually move back to their home country after earning and saving enough money, as most expats view staying in the UAE as a short-term plan. The new long-term retirement visa law can allow expats more longevity.
The retirement visa attracts residents with significant assets, who would want to remain in the UAE.
During retirement, residents are recommended to dedicate some of their investments in the local market that will match their current expenses.
However, when an individual decides to stay in the UAE once reaching the retirement stage, the government will not provide any national benefits, which makes it critical for retirees to look for a sustainable source of income after retiring from work.
It is therefore crucial when retiring in a foreign country, to consider options such as security, cost, quality of living, and taxation. Retirement at the UAE offers certain benefits. Management consulting helps evaluate the pros and cons of retirement stage and determine which is best suited for business conditions.