2004, and his pro-western policies have set the tone for
UAE’s exponential growth. One of UAE’s attributes which
attracts foreign investors and workers, is the fact that
there are no personal or federal income taxes imposed
on anyone living there. This is due to change on January
of 2018, when a mere 5 percent value added tax is being
introduced for the very first time, with many exemptions,
including on rental income, healthcare and education.
UAE expects a revenue generation of over three billion
dollars, adding to its already thriving economy. Another
attribute which has drawn a multitude of Investors to UAE
is the fact that there is no minimum capital requirement to
establish a business here. In fact, they have made it quite
easy for foreign nationals to start their own business by
establishing “Free Zones.”
The first Free Zone (FZ) was pioneered in Dubai, which
offered foreign businesses very attractive concessions
and incentives. Currently there are over 40 FZ’s in the UAE,
with many of them specializing in certain fields such as
finance, media or healthcare. The main benefit to a start-
up in the Free Zone is that the FZ Companies generally
enjoy 100 percent ownership and profit, with no corporate
taxes, customs duty, currency restrictions, trade barriers
or labor restrictions. Generally, there are two ways for a
U.S. start-up to become licensed in the UAE: the Free Zone
option and a Mainland option.
While UAE encourages foreign business activities, the
UAE Department of Economic Development carefully
evaluates the legitimacy of the foreign entity and its
intended business activities in the UAE prior to issuing a
business license. Therefore, a U.S. entity considering to
market in the UAE must carefully evaluate the structure of
its business with local UAE counsel prior to proceeding.
THERE IS NO PATH TO UAE
CITIZENSHIP FOR A NON-EMIRATI
UAE has become home to many affluent foreigners who
continue to grow their net-worth in the region, instead of
their home country, because of the incentives offered
by the UAE government. The underlying reason for their
migration though, is often the socioeconomic or political
situations back home. The unrest in their countries derives
them for a better place to live and to grow their families.
The UAE provides for many opportunities for foreigners to
grow and thrive.
However, UAE does not provide for a path to citizenship
as you have to be of Emirati heritage to be considered a
citizen of the UAE. So unlike the US, not even children born
to foreign parents will ever be considered UAE citizens.
This factor may be the reason as to why many wealthy
and thriving foreign families there still seek citizenship
to another country. Many happy UAE residents, who still
continue to live in UEA, have acquired citizenships to
countries such as St. Kitts or Cyprus through investment,
simply because the prospect of ever having to go back to
their home county is not an option for them. Others seek
the EB-5 option of immigrating to the United States.
WITH THE INCREASE IN TENSIONS IN
THE MENA REGION, THE U.S. MAY
EXPERIENCE AN INCREASE IN EB-5
APPLICANTS FROM THE AFFECTED
COUNTRIES
UAE has had a long history for being a safe haven to
many citizens from the MENA region. While there is some
EB-5 presence in the UAE, unlike China there is no formal
agency system in place. However, some immigration
companies in Dubai have reportedly experienced a “spike
in demand” for U.S. investment visas, according to a
CNN Money report. Especially after President Trump’s
proposed Travel Ban, which has been struck down twice
by U.S. District Court Judges, the U.S. immigration law
community has experienced an increase in volume of
callers from the affected countries, inquiring about EB-5
visas. From the perspective of U.S. regional centers and
developers, instead of extending resources to each and
every promising emerging market, an investment in
the UAE, geared towards marketing in the seven MENA
countries, may be a prudent choice.
MARJAN KASRA
Marjan Kasra, Esq is the founder and managing
attorney of the Law Offices of Marjan Kasra
LLC. She has extensive experience in Middle
Eastern specific EB-5 and E-2 visa issues
and assists clients at U.S. Consular posts
worldwide. She has been recognized as one of the “10 Best
Immigration Attorneys” of Connecticut by the American
Institute of Legal Counsel. She is also actively involved in
several prestigious professional associati