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IMPACT – MEDIUM
What is the change? Authorities have lifted a ban on UAE nationals traveling to Lebanon.
Background: The travel ban to Lebanon was implemented in Feb. 2016 and blocked tourist, business and work travel from the UAE to Lebanon. The decision to remove the ban follows a visit by Lebanese Prime Minister Saad al-Hariri to Abu Dhabi.
Analysis & Comments: The removal of the travel ban is good news for tourists and companies coordinating business travel from the UAE to Lebanon and represents an easing of political tensions between the two countries.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services.This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? The UAE Cabinet has adopted 10 resolutions to support Emiratisation and employment of 20,000 Emirati workers over the next three years.
What does the change mean? The resolutions provide for hiring and training Emiratis in key sectors, among other changes. The plan has been rolled out for the mainland, and there is an expectation that Emiratisation will also eventually apply to free zones.
Background: The goal of the resolutions is to open up 20,000 jobs in the next three years to Emiratis in key sectors including telecommunications, civil aviation, banking and real estate development.
Among the resolutions passed by the Cabinet, the government will set up a 300-million-dirham fund to train Emirati workers, subsidize 6-12 month training programs for graduates in government and private sector jobs, introduce specialized diplomas in technology, provide incentives for employers to give job opportunities to Emiratis, and amend the pension system to encourage Emiratis to gain skills in the private sector. An annual Emiratisation index will track progress across economic sectors.
Analysis & Comments: The UAE is stepping up Emiratisation efforts with the new resolutions. Employers should anticipate the push to train and hire local workers. Companies that rely heavily on expatriate labor will be asked to help support skills programs for Emiratis.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? The United Arab Emirates has made it easier to sponsor dependent sons for visas past their 18th birthday.
What does the change mean? UAE residents can now obtain one-year residence visas for 18-year old dependent sons. The visas are renewable once for an additional year. Unmarried daughters remain eligible for dependent status no matter their age.
Background: The Federal Authority for Identity and Citizenship announced the change this past summer. Up until that point, dependents sons had to apply for their own work visas to stay in the country once they turn 18. UAE residents also had the option of applying for a humanitarian appeal to sponsor dependent sons past the age of 18 with additional supporting documents. Under the new process, renewals for 18-year-old sons will be granted almost immediately with an attested degree certificate or letter from the university, and applicants will no longer be required to pay a security deposit of AED5,000, as was previously mandatory for those applying for a humanitarian appeal.
Analysis & Comments: The change is welcome news because it will be easier for dependent sons of UAE residents to remain in the country after they turn 18. Dependent sons applying for the new visa will, however, need to obtain separate authorization to work in the UAE. Sponsors should note that while dependent visas for sons and daughters allow dependents to reside in the UAE, separate work authorization may be required for dependent sons or daughters who work in the UAE.
IMPACT – HIGH
What is the change? The United Arab Emirates has begun providing work authorization to male dependents of UAE residents.
What does the change mean? Men who are sponsored for residence by their wife, a parent or a child can now apply for work permits on the basis of their dependent status. This will help employers meet some of their workforce needs without recruiting outside of the country.
Background: Up until now, only female dependents meeting the age requirements and sponsored by their husbands or fathers were eligible to obtain work authorization as dependents. Work permits for male dependents are valid for two years, can be renewed for an additional two years, and are issued separately from the dependent’s residence permit. The fee for these work permits is AED 300.
Analysis & Comments: The change is good news for companies in the UAE. Companies will save on the cost of recruiting foreign workers and benefit from hiring foreign dependents as it is more costly to take on staff on work visas than to employ staff with work permits in the UAE.
What is the change? The United Arab Emirates has eased requirements for sponsoring dependent spouses and children.
What does the change mean? UAE residents can now sponsor dependents provided the income of one or both spouses (family income) is at least AED 4,000 or AED 3,000 if the employer provides housing.
Additional information: Previously, eligibility to sponsor dependents was limited to men working in certain professions and women who made at least AED 10,000. Earlier this year, the UAE announced that the limitations by profession would be lifted and that residents would be able to sponsor dependents on the basis of the income qualifications listed above. The Federal Authority for Identity and Citizenship (ICA) announced on July 14 that the changes had been implemented. The ICA said that in order to sponsor dependents, applicants would not only need to meet the income thresholds but also provide proof of accommodation, health insurance, registration in the Population Register System and the issuance of an ID card for each dependent.
Analysis & Comments: The change expands the number of workers in the UAE who will be able to sponsor dependents for residency visas. This may provide foreign workers, particularly those in lower income jobs that were not covered by the previous rules, with a greater incentive to move to the UAE with their families.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Authorities have clarified that the UAE’s new Golden Card program is a long-term residence program, but not a permanent residence program.
What does the change mean? Foreign investors, top international specialists, researchers and high-performing students are now being invited to apply for Golden Cards, which are valid for up to 10 years and renewable indefinitely.
Background: Officials began issuing Golden Cards, as the long-term visas are known, in May. At the time, the program was described as a permanent residence program. Officials subsequently clarified that the Golden Cards will be valid for up to 10 years. Golden Cards are renewable, provided card holders continue to satisfy the terms of their visa and complete required renewal processes.
Analysis & Comments: While the Golden Card program is not a standard permanent residence program, it is nonetheless expected to boost the UAE’s economy by attracting business and foreign investment.
What is the change? The UAE is waiving visa fees for dependents traveling to the UAE for tourist purposes this summer.
What does the change mean? Dependents 18 years and younger will not need to pay visa fees between July 15 and Sept. 15. The change is expected to boost tourism during the off-peak season.
Background: The exemption was first announced by the UAE Cabinet in September last year. This will be the first year of its implementation.
Analysis & Comments: The change is good news for tourists as they will not need to pay visa fees for tourist stays this summer.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? The Ministry of Human Resources and Emiratisation has announced a multi-pronged Emiratisation program aimed at employing tens of thousands of Emiratis in public- and private-sector jobs this year. The plan will require private-sector employers to consider local candidates before applying for a work permit.
What does the change mean? Mainland companies seeking to hire in more than 300 designated professions in skill level 1-3 will be required to interview Emiratis who are selected by the ministry. The company will need to justify reasons for rejecting an Emirati before the ministry approves a work permit. Companies with fewer than 10 employees will be exempt.
Background: The labor market test is part of an ongoing Emiratisation strategy. The government is also implementing a national employment policy to train and prepare local workers and increase their participation in the labor market, and will introduce a program to promote self-employed individuals.
Analysis & Comments: The Emiratisation plan signals that UAE authorities continue to prioritize boosting local employment in certain industries and either restricting employment of foreign nationals in certain jobs or providing incentives for hiring and training Emiratis. The labor market testing provision requires mainland employers to adopt new recruiting procedures and is expected to be gradually implemented. It is not expected to be applied to free zones.
What is the change? The United Arab Emirates has launched a new Golden Card permanent residence program aimed at attracting foreign investors, top international specialists, researchers and high-performing students.
What does the change mean? The Golden Card plan builds on a program that was implemented last year to provide long-term visas to qualifying investors, specialists and students. The initial grants of permanent residency will likely be for business people and students who are already in the UAE and who will be given the opportunity to change their status and obtain a Golden Card.
Background: In May of last year, the UAE announced a program to provide five- and 10-year visas to leading investors, specialists and high-performing students. Officials have now taken another step and announced that many of these same people will be eligible for permanent residence in the UAE. Qatar and Saudi Arabia have also recently announced new permanent residence programs.
Analysis & Comments: The Golden Card program will be the UAE’s first permanent residence program. The program follows a regional trend and is intended to boost the UAE’s economy by attracting more business and foreign investment to the country. About 6,800 residents will benefit from the scheme under the first round of applications.
What is the change? The United Arab Emirates has introduced a new job-classification system that lists occupations that foreign nationals are eligible to fill.
What does the change mean? Mainland employers will need to consult the list for appropriate job titles and descriptions and make sure that foreign nationals have the relevant degree certificates matching the jobs in order to qualify for work permits.
Background: The new scheme simplifies the previous scheme by reducing the number of jobs to fewer than 800 job titles classified into nine categories with a unique classification code. The previous scheme contained more than 3,000 job titles.
Analysis & Comments: The new job-classification system is one of the steps the UAE is taking toward greater Emiratisation and encouraging companies to hire local workers. Employers should anticipate that further steps are likely to follow from the job-title streamlining—for example, the government may move to restrict some job titles to Emirati nationals exclusively. Emiratisation measures that have always been strictly applied to state-owned companies are gradually being introduced for mainland-incorporation companies. While the UAE has announced that it will allow companies greater freedom by permitting 100-percent foreign-owned companies to incorporate on the mainland, the government will be looking to expand Emiratisation policies to cover foreign-owned mainland companies. Free-zone companies are not subject to Emiratisation initiatives and are unlikely to be for the foreseeable future.