Why Have the Emirates Become a Magnet for Capital from Russia?

Last year the UAE took first place in a ranking of countries with the most favorable climate for starting and growing a business. In addition, the country attracts foreign investors with the chance to secure a "backup base" in case of unforeseen economic and political situations back home.

Follow the link to learn how a Russian citizen can become a UAE resident.

But let's take this step by step.

Advantages of living in the UAE

At the end of February last year, Russian citizens became personae non gratae for most European states. Despite the difficult political situation, the United Arab Emirates has remained neutral toward Russians.

However, this is not the only reason a huge number of foreign investors choose this country as a place of permanent residence.

A UAE residence permit also provides foreigners with the following advantages:

• tax optimization: residents of the country pay no tax on income, dividends, or royalties (there is also no inheritance tax or tax on profit earned outside the country);
• the ability to open a bank account: under current realities this right substantially simplifies the process of running a business for Russian entrepreneurs;
• a driver's license recognized in 50 countries worldwide (including the UK, the US, Germany, and Sweden);
• access to quality healthcare and education.

Tourist appeal is another advantage of life in the Emirates. In 2022, more than 14 million tourists from around the world visited Dubai alone. This means Russians who own an apartment in Dubai or another UAE city can not only apply for residency but also earn income from short-term or long-term rentals.

The UAE: an epicenter for startups and an ideal base for remote workers

Dubai ranks in the top 35 countries with the most favorable climate for attracting venture capital investment. This is exactly what draws entrepreneurs involved in growing startup projects.

The COVID years and the realities Russians faced last year became the main drivers of business relocation. The vast majority of specialists able to work remotely chose UAE cities to live in. There are several main reasons for this decision:

• Dubai's favorable geographic location (the city is within a five-hour flight for more than 2 billion people);
• the legalization of cryptocurrency payments ("crypto" can be used to pay not only for store purchases but also for property rentals);
• a large number of relatively open niches for business (since the start of last year, numerous private medical centers, beauty salons, and fitness clubs have opened branches in the UAE).

To support startup growth, the UAE government has established more than 40 multi-sector free zones, where expats and foreign investors can open companies, grow their business, and maintain a steady flow of profit for their enterprise.

Which visa is needed to relocate

To cross the UAE border you need a visa of one of the following categories:

1. Tourist visa: for short-term stays (30 to 90 days). Issued to Russians on arrival at the airport.
2. Work visa: in most cases arranged by the company providing the job to the foreign national.
3. Investor visa: available to foreigners who have purchased a completed property, as well as founders of companies with starting capital of at least 500,000 AED.
4. Student visa: issued to those admitted to study at one of the country's universities or colleges.

The optimal way to obtain a resident visa is by purchasing property (in this case the transaction can involve residential premises as well as offices, warehouses, and land plots).

The validity period of a resident visa for property buyers depends on the value of the property purchased. To get a two-year visa you need to buy property worth at least 750,000 AED. Want to move your whole family to the United Arab Emirates and legally reside in the country for 10 years? Then the purchase amount must be at least 2 million AED.

Features of life in the UAE

The United Arab Emirates ranks fourth in the world for the appeal of relocating there for permanent residence. Foreigners are drawn here primarily by the high standard of living, stable economy, and the opportunity to grow a business on the international stage.

However, before making a decision, it's worth considering that the cost of living in the UAE is significantly higher than in popular European countries. On average, a family of four spends $8,000 to $9,000 a month living here.

This amount includes spending on:

• property rent and utility payments;
• food;
• children's education (school, kindergarten, activities);
• entertainment.

More than 40% of a family's budget goes toward renting and maintaining housing. For comparison, this expense category for a family living in a European country is roughly 2-2.5 times lower.

It's worth noting that Russians in Dubai with work permits earn on par with the local population. The average salary ranges from $6,000 to $7,000.

The UAE's official language is Arabic. But in everyday life many locals frequently use English.

Dubai attracts the most Russians and residents of the former Soviet space. This is where you're most likely to hear Russian spoken. So if you're worried that you or your children might find it hard to integrate, this city is the best choice for permanent residence.

High tourist demand affects the price of Dubai property. Today the average price per square meter starts from $3,000. An apartment measuring 140 square meters can be bought here for $420,000-450,000. This type of investment gives a foreign national the right to apply for a two-year resident visa.

A foreign investor who obtains UAE resident status can not only relocate to Dubai permanently but also bring their family, namely:

• spouse;
• sons under 18 (or under 21 if enrolled in higher education);
• daughters (unmarried, regardless of age);
• parents.

Only citizens of the country can receive a pension in the UAE. Resident status (including a Golden Visa) does not provide this right.

Despite the political situation in the world, Dubai and Russia have managed to preserve friendly relations. That's why today many Russians choose this destination for relocating and growing their business.