The United Arab Emirates (UAE) is stepping up its governmental and economic initiatives to attract foreign investments and provide residents with greater stability and opportunities. One key measure is the updated Golden Visa program, allowing families and foreigners to obtain long-term residency through property investment.
Since January 2024, acquiring the UAE Golden Visa via real estate investment of Dh2 million or more has gained significant traction. The removal of the 50% payment requirement, which previously had to be made before processing the Golden Visa, has made it even more appealing. Libbie Burtinshaw, Head of Operations at Sovereign PPG, noted, “Since the requirement from the authorities for a 50% payment to be made to start processing a Golden Visa has been removed, the interest from buyers has seen no drop.”
This newfound flexibility not only has drawn attention from aspiring investors but has led to increased sales activity. According to sources, more international buyers—particularly from regions like Asia and Europe—are exploring this option, driven by enticing payment plans and the allure of long-term residency. “The best part is the residency program finds acceptance among all age groups,” remarked one developer source, highlighting the program's appeal across demographics.
Meanwhile, the UAE's economic strategy is also reflected in its impressive M&A activity. The MENA region attracted more than $92 billion through mergers and acquisitions (M&A) just last year, signaling strong investor confidence. Notably, the UAE and Saudi Arabia led this expansion with significant reforms aimed at enticing foreign investments. Brad Watson, EY MENA Strategy and Transactions Leader, stated, “With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver.”
The 2024 EY MENA M&A Insights report noted 701 deals, marking a 3% increase from the previous year, with total deal value rising 7%. Cross-border M&A made up 52% of deals by volume and 74% of value, showcasing the UAE's appeal as a strategic hub. Among notable transactions, the acquisition of Truist Insurance by Mubadala for $12.4 billion stood out as the largest of the year.
Anil Menon, EY MENA Head of M&A and Equity Capital Markets Leader, emphasized the regional focus on technology as “we’re living through a productivity renaissance fuelled by technology and AI,” indicating strong potential for growth and innovation within the sector. Indeed, technology and consumer products are becoming significant drivers of the M&A market as businesses seek to adapt to rapid digital transformation.
But the UAE’s governmental initiatives extend beyond mere economic strategies. Reflecting its commitment to community stability, President Sheikh Mohamed bin Zayed Al Nahyan has ordered the release of 1,295 inmates as part of measures to support families during Ramadan. This significant gesture aims to alleviate the hardships faced by the inmates' families and also fosters stability within the local community.
By settling financial obligations incurred as part of the inmates’ sentences, the UAE government not only promotes ethical standards but also compassion within society. Such initiatives serve as reminders of the UAE's efforts toward social welfare alongside its economic ambitions.
This blend of economic growth and social responsibility encapsulates the UAE's multifaceted approach to development. These initiatives are likely to attract even more investments and create conducive living conditions for expatriates and citizens alike.
Overall, the UAE's blend of cutting-edge economic policies, investment-friendly regulations, and community-focused reforms continues to solidify its status as one of the most attractive destinations for investors and residents. With increasing interest purely driven by the Golden Visa opportunities, alongside promising statistics from the M&A domain, the future looks bright for this vibrant nation.