Dubai’s golden visa policy helping defy global office slump: report

Several of Dubai’s policies, including easing restrictions around its much coveted 10-year golden visa, have attracted expats and businesses, ultimately helping the city “dodge the commercial real estate crisis rippling across the globe,” according to a Bloomberg report.

“Policymakers wanted to help Dubai shed its reputation of being a transient city by attracting expatriates and encouraging some of them to set up businesses. That seems to have paid off,” the report added.

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Not only have the city’s active business licences jumped 30% from 2022 levels to hit over 411,000 in 2023, its commercial real estate market has seen occupancy reach record highs, in stark contrast to other business hubs like London and New York.

Just last week DIFC announced it is now home to 5,523 active companies. A total of 1,451 new companies were established in DIFC in 2023, it said, which is the highest number of new registrations annually in its history, up 34 percent. DIFC also announced it is ahead of schedule in achieving its target of doubling its GDP contribution by 2030.

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New registrations included several global powerhouses such as Alliance Bernstein, Edmond de Rothschild and Farro Capital.

Meanwhile DIFC’s “office space is scarce and rents are still rising”, the Bloomberg report said.

This is all in part because Dubai realised the importance of “providing long-term horizons and predictability - the bedrock of decision-making for executives. Golden visas ensure that to a degree, even though citizenship remains largely off the table.”

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And as expats stream in, Dubai’s residential property prices are closing in on records, with Pakistanis among the city’s top 10 buyers.

Other than the golden visa, it’s also other policies that are behind the city’s popularity: it is no longer necessary for companies to have a majority local partner, the working week is now Monday-Friday, and unmarried couples can live together legally.

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“When taken holistically, the changes made are significant,” Bloomberg quoted Ryan Bohl, a senior analyst at risk intelligence consultancy Rane Network, as saying.

Saudi Arabia and Qatar “are both going to be pressured to try to find ways to liberalize their economies in ways that make sense for themselves, if they want to compete with the economic freedom Dubai gives businesses,” he added.

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On the flip side, according to Renee McGowan, CEO of India, Middle East & Africa at Marsh McLennan, Dubai needs to establish retirement programs and health insurance plans to allow residents to retire in the city.

The report also noted that “Dubai’s diminishing tax-free status may hinder its ability to lure more foreigners.”