Businesses flourish in strong economies with the support of new rules and regulations to help nourish it. Any new regulation can bring about a lot of changes to an existing business ecosystem. Governments usually bring in a new rule with the idea of revolutionizing the existing systems and improve the economy as a whole.
The UAE government recently announced the service to offer long-term visas to the investors in JAFZA, one of the world’s leading free trade zones and home to over 7,500 multinational companies. Over the years, Dubai has seen a rise in the number of foreign investors in the country, which helped the country’s economy grow bigger and better than ever. Understanding the potential of foreign investment, the government is currently awarding 5 and 10 years visas to investors, entrepreneurs and exceptionally talented individuals, with the aim of attracting new talent into the country to open their business in Dubai.
Before we examine the new regulation better, let us take a look at JAFZA and how this free zone has helped build a better business environment within the country.
Jebel Ali Free Zone (JAFZA)
Jebel Ali Free Zone or JAFZA is a massive industrial free zone towards the south of Dubai, that offers seamless connectivity to the MENA region as well as the rest of the world. With its geographical location and presence of more than 7500 global companies including over 100 Fortune Global 500 companies, JAFZA contributes to more than 23.9 percent of the total FDI flow into the country. Statistics show that this freezone contributes around 21 percent of Dubai’s GDP on a yearly basis, all the while sustaining the employment of more than 135,000 people in the UAE.
Over the years, the value and volume of trade conducted through JAFZA strengthened the UAE’s economy, aiding it in adapting to the global trading conditions. Economists have noted that this created more and more investment opportunities, which in turn opened up newer export markets from the UAE. In 2017, JAFZA recorded a whopping $80.2 billion worth of non-oil foreign trade, underlining its position as one of the most profitable free zones in the Middle East. Even today, a lot of investors open their business in Dubai, due to its position as the most favoured and economically strong free zone.
The Impact of Long Term Visa
As JAFZA become the first free zone in Dubai to offer long-term visas to its investors, it effectively impacts the nation’s economy by attracting new investors and talents to open their businesses. Through these long-term visas, the government aims to make Dubai an attractive destination for foreign investors, entrepreneurs and highly skilled specialist to get inventive and drive the country’s business ecosystem and new ventures forward.