HH Sheikh Mohammed announces sweeping visa and labour changes

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The reforms will have a huge impact on many people living, working and travelling to the UAE.

In a cabinet meeting held on Wednesday evening, HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the UAE and Ruler of Dubai announced a series of sweeping reforms to labour and visa laws that will positively affect the lives of many people living, working and travelling to the UAE.

Taking to Twitter to reveal the changes, His Highness outlined eight key points designed to enhance the UAE’s economic competitiveness, saying that “It is in the national interest of our country to have the best economy to attract investors.”

Here’s how the new laws breakdown:

The bank guarantee system is being abloished

The usual system of mandatory bank guarantees for labour recruitment will replaced with a low-cost insurance system.

There will be a massive cash injection into the private sector

The current bank guarantees totaling Dhs14 billion will be released back into the private sector for a massive influx of funds to the economy.

Insurance costs for employers are going down

A new insurance system for private sector employees will reduce the cost down from Dhs3,000 per employee to just Dhs60.

There will be temporary visas for job-seekers

In an effort to help those looking for employment, a new temporary six-month visa will be introduced especially for job-seekers.

Transit passengers will be able to enter the country at no cost

Transit passengers to the UAE can apply for a 48-hour visa at no cost, with the option to extend to 96-hours for a fee of Dhs50.

Overseas students will be afforded better opportunities

A two-year visa will be implemented for “talented and outstanding” students, offering those who wish to study in the UAE from abroad more options.

You won’t have to leave the UAE to renew your visa

Anyone looking to renew or adjust their visa will soon be able to do so without needing to leave and re-enter the country

There will be more lenient laws for overstaying your visa

People who overstay their visa will be given the chance to leave the UAE voluntarily without a ‘no-entry’ stamp in their passport.

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