For the foreign expats, who have spent many industrious years and consider UAE as ‘home’, the recent decision by the government, to offer foreign residents the opportunity to remain in the UAE after retirement is being applauded.
The new decision promises to transform the social, economic and cultural fabric of the nation in numerous ways.
There are, of course, certain conditions. To gain the golden year's visa, a retiree must either own property worth at least Dh2 Million have a saving worth Dh1 million, or a monthly income of Dhs 20,000.
UAE has much to gain from the anticipated shift in demographics. At the moment, more than 60 percent of the population is aged between 25 and 54. Thanks to the current retirement policy, only about 3 percent is between 55 and 64, with those over 65 accounting for a mere 1 percent.*
Some immediate benefits of the new rule can be identified as follows:
It will provide options for people with appropriate financial resources, who are already living and working here, should they choose to stay back.
As the expats cross the threshold of 50, there will be no longer that looming feeling of whether they should plan to leave. Many of who have stayed and worked here, might prefer to stay back. While a surge in property priced more than Dhs2 million may not happen, banks, finance companies, and the real estate market should benefit from the flow of mortgage requests.
The residential property market is currently experiencing an oversupply situation. The availability of retirement visas should, in time, provide a useful boost.
Since every individual staying in the UAE needs mandatory insurance, the insurance companies will also benefit from the post-retirement insurance requests.
The new initiative is expected to further cement UAE's image as the most investor-friendly country in the region.
Beyond all that, there’s another benefit for the nation each year. As people retire and leave, the country loses its knowledge and experience. If even some decide to stay, the nation retains these valuable resources.
The decision also indicates how the UAE government is keen to deliver a balanced economy, where growth is underpinned not only by oil, but also by talent.
*courtesy: The National