HH Sheikh Mohammed announces sweeping visa and labour changes
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.”
In a cabinet meeting today we approved reforms including replacing the bank guarantee system for private sector employees, with a low-cost insurance scheme. This will release AED 14 billion back to the private sector companies and will further lower the cost of doing business . pic.twitter.com/4BYNzldJ0S
— HH Sheikh Mohammed (@HHShkMohd) June 13, 2018
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.
#UAE Cabinet approves number of strategic economic decisions with regards to foreign workers’ insurance in the private sector, as well as a legislative package of visa facilitations. pic.twitter.com/jKlo8NBygJ
— Dubai Media Office (@DXBMediaOffice) June 13, 2018
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.
New insurance scheme for workers’ guarantees has been introduced. The previous mandatory deposit of AED 3,000 per worker is now replaced by a new insurance that cost only AED 60 annually per worker. #UAE pic.twitter.com/5g5jvuo8Wu
— Dubai Media Office (@DXBMediaOffice) June 13, 2018
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.
The cabinet approves new decision has also been approved to exempt transit passengers from all entry fees for the first 48 hours. Transit visa can be extended for up to 96 hours for a fee of only AED 50. #UAE pic.twitter.com/4FUYpZEQEq
— Dubai Media Office (@DXBMediaOffice) June 13, 2018
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
Equally, in a step aimed at simplifying the process and easing the financial burden on individuals wishing to adjust or renew their visa, they can now do so for a fee without having to leave and re-enter the country. #UAE
— Dubai Media Office (@DXBMediaOffice) June 13, 2018
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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