The UAE's new residency and foreign ownership rules in local firms

PUBLICATIONS / Articles / 2018 / UAE Approves new visa facilitation and foreign employees plans

The cabinet of the United Arab Emirates, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the UAE and Ruler of Dubai, approved a number of strategic decisions over foreign employees’ insurance in the private sector, as well as a legislative set of visa facilitation.

The action will be introducing the new insurance plans for employees’ guarantees. The former mandatory deposit of AED 3,000 ($817) per worker is now being substituted by new insurance that costs AED 60 annually per employee, according to the report of state-owned WAM news agency.

According to WAM, the new measures ‘secure employees’ rights in the private sector and cuts the burdens on employers. It will give an opportunity for businesses to recover about AED 14 billion, representing the value of current guarantees paid by employers, which will allow them to further invest in the development of their businesses.

The significant change for newcomers would be that the cabinet has approved visa facilitations for visitors, families and residents overstaying their visas.  The new decision will exempt transit passengers from entry fees for the first 48 hours while transit visa can be extended for up to 96 hours for a charge of AED 50. The new visa support will ease travelling without having to re-enter the country.

On another note, the cabinet adopted a decision allowing people overstaying their visa the option of leaving the country voluntarily without a ‘no entry’ passport stamp.  Moreover, a new six-month visa will be introduced for job seekers who overstayed their visa but wish to work in the country.

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