Investors in the UAE used to need a labour card to live and work there. This card was usually for employees. For many investors, this was a challenge because it made getting residency more complicated.
To improve things, the UAE government has updated its rules. Now, investors do not need a labour card. This change means that investors do not have to get employment visas like regular employees do. This makes it easier for investors to get residency.
What Changed in the Labour Card Requirement?
The new ministerial order changes how investors can get residency in the UAE. Before, investors needed a labour card, like employees, which had to be sponsored by their company. This card was necessary to get a residence visa.
Now, investors no longer need a labour card. They can apply directly for an investor visa through places like the Naturalisation and Residency Department (NRD). This makes the residency process easier so investors can focus more on their business instead of complicated visa rules.
This change helps investors who have different roles in their companies. In the past, there was confusion if an investor also worked in the company in other ways. They had to get a labour card then. With the new order, investors do not need a labour card, no matter their roles in the company.
Timeline and Implementation of the New Policy
The UAE government has decided to cancel the need for a labour card for investors. This change is already in effect. The Ministry of Labour and Social Affairs is working on putting this into action.
Current investors who have valid labour cards will see them cancelled within a certain time. They will need to switch to other visa options, like the investor visa. The government wants to make this change easy. They will give clear rules and enough time for investors to follow the new requirements.
This new policy shows the UAE’s goal to be a better place for foreign investment. With a simpler visa process, the government is making it easier for global businesses to enter and succeed here.
Impact of Labour Card Cancellation on Investors
The removal of the labour card requirement has a big effect on both new and current investors in the UAE. For those who are already investing, this change means they need some time to find new visa options. Still, many think this is a good move for the future.
Getting rid of the labour card makes things easier for investors. It helps the UAE look better for foreign investment.
Immediate Effects on Current Investors
Existing investors in the UAE will notice changes with the cancellation of the labour card. Their current labour cards will no longer be valid, but the government has given a grace period for them to adapt to the new rules.
During this grace period, investors can keep using their labour cards until they expire. This helps them plan and start getting other visas without penalties. The government has set up clear ways for investors to get answers to their questions during this time.
Overall, the government wants to reduce problems for current investors and help them move peacefully to the new system.
Long-term Benefits for Investors in UAE
The cancellation of the labour card requirement brings many long-term benefits for investors in the UAE. This change will help grow the economy.
Here are some key advantages:
- Streamlined Visa Process: Investors can now apply directly for visas. This cuts down the red tape and makes starting a successful business venture in the UAE easier.
- Enhanced Ease of Doing Business: The simpler process makes the UAE more appealing to global business owners and entrepreneurs.
- Increased Foreign Investment: With a more straightforward visa process, and other attractive business benefits, we expect more foreign investment. This will help boost the country’s economy.
This new policy is good for investors and the UAE. It helps support economic growth and prosperity.
Steps to Transition for Existing Investors Without a Labour Card
Existing investors with canceled labor cards must follow some steps to make the transition easy. First, they need to apply for a new visa that matches their investor status.
This means they should collect the required documents, send their applications to the right authorities, and possibly pay any fees that apply.
Necessary Documentation for Transition
The documents needed for the visa application can change based on the type of visa you choose. But some documents are required for all visas related to investors.
If you’re an investor, make sure you have these:
- Valid Passport: You need a passport that is valid for at least six months.
- Trade License Copy: Provide a copy of your valid UAE trade license. This shows your business activity in the UAE.
- Company Ownership Documents: These papers confirm your ownership in a company based in the UAE. The documents may differ based on the company type.
- Bank Statements: You might also need to show bank statements. These are proof of your funds and show you can invest and live in the UAE.
Investors should check official government sources or get advice from experts. This way, they can be sure about the document requirements for their visa type. This helps make the visa application process smooth and effective.
Where to Submit Applications and Seek Assistance
Investors can submit their visa applications and seek assistance from the relevant government authorities, primarily the General Directorate of Residency and Foreigners Affairs (GDRFA) and the respective residency departments in each Emirate. Here is a table showing where to seek assistance:
| Department/Authority | Emirate |
| GDRFA | Dubai |
| Federal Residency Department | Abu Dhabi |
These government bodies provide online and offline channels for visa applications and information dissemination. Investors can access the GDRFA website or visit their offices for detailed guidance on the application process, required documentation, and any applicable fees.
Additionally, investors can seek assistance from business setup consultants familiar with the visa regulations and can guide them through the process.
Understanding the Legal Framework Behind the Cancellation
The UAE government is canceling the labour card for investors. This action is part of their plan to improve the laws about foreign investment and residency. The goal is to make it easier for investors to come and stay in the country, attracting talent and money from around the world.
Instead of treating investors like employees, the government now sees them as important members of the economy. The new laws show this change and give investors a smoother way to start and expand their businesses in the UAE.
Role of the Ministry of Labour and Social Affairs
The Ministry of Labour and Social Affairs (MOLSA) has an important job with this new order. Even though investors no longer need to get labour cards, the MOLSA will still manage labour relations. They will make sure there are fair work practices and protect the rights of all workers. This includes those who work for investor-owned companies.
The MOLSA will keep issuing and managing labour cards for employees not connected to investors. They will also check any changes needed for employment contracts and visa statuses after the end of investor labour cards.
The Ministry wants to work closely with investors and businesses. They aim to help everyone move smoothly to the new policy and handle any issues that may come up. The Ministry’s main goal is to keep a balanced labour market and support the economic growth of the UAE.
Implications for Visa and Residency Status
Existing investors need to fix their visa status now that investor labor cards are canceled. A common way to do this is by moving to an investor visa. This kind of visa often lets investors sponsor family members for residency.
Investors can sponsor their spouses, children, and sometimes their elderly parents. They must show proof of their relationship through documents like marriage and birth certificates. Investors also need to meet certain income rules to show they can support their family members living in the UAE.
This new rule makes it easier for investors to keep their legal residency and sponsor their families in the UAE. It also boosts the appeal of the country for foreign nationals who want a safe and successful life.
Alternatives to the Labour Card for Investors
With the end of the labour card for investors, there are other visa options for people who want to start businesses and live in the UAE.
The main two are the investor visa and the partner visa. Each has its own eligibility criteria and benefits.
Exploring the Investor Visa Option
The investor visa is a popular choice for people who want to invest in and move to the UAE. With this visa, foreigners can live and work in the country based on their investments in a local business or real estate.
There are specific eligibility criteria and investment amounts that must be met. These criteria can change based on the Emirate and the type of investment. For example, the Dubai investor visa and the Abu Dhabi investor visa may have different requirements.
Also, making a significant investment can help you get the highly valued UAE Golden Visa. This visa gives an extended period of residency and many other benefits. Investors should check official government websites or talk to trustworthy business consultancies to learn about the specific requirements for their investment type and Emirate.
Partner Visas and Their Requirements
A partner visa is a way for people to get residency in the UAE. According to UAE rules, a foreign national can get a partner visa if they are married to a UAE national.
This visa lets the spouse of a UAE national live and work in the country. The UAE national who sponsors their spouse must meet certain conditions, like having a minimum income.
Keep in mind that the rules and process for partner visas can change. It’s best to check with official government sites or legal experts for the latest information and help.
Conclusion
In conclusion, the new update on the labour card policy for investors in the UAE brings important changes and chances. Now, investors do not need a labour card. This makes the process easier for them. It helps current investors right away and offers long-term benefits. It also makes it simpler to meet residency requirements and improves the business climate. It is important to understand the rules behind this change. Investors can also look into options like the investor visa or partner visas to find good paths forward. For more help with these changes, investors can contact the right authorities to follow the new rules.
Frequently Asked Questions
Can I still work in UAE without a Labour Card as an investor?
Yes, if you are an investor, you can work in your own company or a mainland company in the UAE without needing a labour card. Your visa application will decide if you get a work permit.
What are the new requirements for investors to stay compliant?
Investors must get the right visa. They also need to keep a valid trade license. It’s important to follow the UAE’s rules and know the professional categories in their industries to stay compliant.
How does this change affect family sponsorship?
Investors can keep sponsoring their family members for a residence visa. They can use investor or related visa options. This makes the sponsorship transfer process easier.
Where can investors get more information and assistance?
Investors can contact the Ministry of Labour. They can also talk to business setup advisors. Another option is to visit the official websites of the General Directorate of Residency and Foreigners Affairs in their Emirates. For example, they can look up information in Abu Dhabi for more help and details.
About Arnifi
Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience to entry and scale up of companies both UAE and Saudi Arabia. Discover tailored solutions and strategic partnerships that propel your business forward. Check out at – www.Arnifi.com for more details.
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