UAE’s Golden Visa & its significance to India

In News:

Bollywood actor Sanjay Dutt recently received his golden visa from the UAE.

Background:

In 2019, the United Arab Emirates (UAE) implemented a new system for long-term residence visas, thereby enabling foreigners to live, work and study in the UAE without the need of a national sponsor and with 100 % ownership of their business.

What does the Golden Visa offer?

Golden Visa system essentially offers long-term residency (5 and 10 years) to people belonging to the following groups:

Investors
Entrepreneurs
Individuals with outstanding talents the likes of researchers
Medical professionals and those within the scientific and knowledge fields
Remarkable students.

Reasons Behind the Move:

The UAE’s economy has been hit hard by the Covid-19 pandemic and low oil prices, prompting many expatriates to leave.
The move intends to bring them back now and keep the “talented people and great minds” in the Gulf country and help in nation-building.
It will attract talented professionals from various fields of expertise and further encourage innovation, creativity, and applied research, adding to the appeal of a career in the UAE for the world’s brightest minds.

Significance for India:

It would attract more Indian professionals and businessmen to the Gulf nation and strengthen the India-UAE Relations.
It will also facilitate the return of Indians who want to resume work after the relaxation of Covid-19-related restrictions, for which India had requested the members of the Gulf Cooperation Council (GCC) in early November 2020.
India is one of the top countries receiving the highest remittances from the UAE.

Additional facts for UPSC:

PM Modi visited the UAE in 2015, it was the first state visit by an Indian PM to the UAE in 34 years.
UAE is currently looking to boost its tourism sector.
UAE is a member of the UN, the Arab League, the OIC, OPEC, the NAM, and the GCC.

It is in India's interest to have a cordial relation with UAE.

UAE's Oil & natural gas reserves are one of the largest in the world.
UAE has expressed its interest to invest in India's agriculture.
Besides, the UAE, which is India's top trading partner in the entire West Asia North Africa (WANA) region.

UAE alone represents 75% of India's export to GCC nations, has seriously taken forward the relations with India.

India and UAE have signed an MoU on Technical Cooperation in the Rail Sector.
In 2019, the 46th session of the Council of Foreign Ministers of the OIC was held in Abu Dhabi to which India was invited as a guest of honor.