GCC investment migration benefits are flourishing due to ongoing developments in the area. The Gulf Cooperation Council (GCC) is rapidly emerging as a significant player in the investment migration arena.
With countries like the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE), Oman, Qatar, and potentially Kuwait enhancing their golden visa programs, the region is attracting a growing number of global investors.
This shift is underpinned by compelling statistics and strategic initiatives, signaling the transition of the Gulf Cooperation Council into a major investment migration inbound market.
What are the Gulf Cooperation Council Countries that Offer Golden Visas?
UAE’s Golden Visa Program
The UAE’s golden visa program, for instance, has seen substantial uptake, with over 6,800 investors and their families approved in its initial phase, bringing in more than AED 100 billion ($27 billion) in investment.
This program, among others in the region, is a cornerstone of the UAE’s broader strategy to diversify its economy and reduce oil dependency, aligning with its goal to increase the non-oil GDP contribution to 80% by 2030.
Saudi Green Card
Saudi Arabia’s Vision 2030 is another monumental shift, aiming to attract foreign investment and increase the private sector’s contribution to GDP from 40% to 65%.
The introduction of a Saudi green card, akin to golden visas, is part of this vision, aiming to attract skilled expatriates and investors to drive economic diversification.
Oman and Qatar Investment Residence Programs
Oman and Qatar are not far behind in leveraging investment migration to fuel economic growth. Oman’s Investor Residence Program, launched in 2021, offers long-term residency to foreign investors, contributing to a 10% increase in foreign direct investment (FDI) that year.
Qatar’s liberalisation of its property market, allowing foreign ownership in more areas, complements its Investment Residence Program, making it an attractive destination for investors, especially in the lead-up to the 2022 FIFA World Cup, which boosted its real estate sector by 20%.
The potential extension of investment migration programs to Kuwait could further enhance the region’s appeal, tapping into its $600 billion GDP economy.
The collective move of the GCC countries towards these programs is not just about attracting wealth but also about stimulating economic sectors like real estate, hospitality, and services, contributing to their economies’ diversification and sustainable growth.
The UAE’s golden visa initiative has garnered remarkable attention, granting approval to more than 6,800 investors and their families during its initial phase, resulting in an investment influx surpassing AED 100 billion ($27 billion).
What are GCC Investment Migration Benefits?
1-Tax Incentives: A Closer Look
The tax environment of the Gulf Cooperation Council is one of its most compelling attractions for investors. Unlike many Western countries, where investors might grapple with high income and capital gains taxes, GCC countries offer a much more favourable tax regime.
For instance, the UAE and Qatar impose no personal income tax, and the recent introduction of a 9% corporate tax in the UAE still positions it as one of the lowest globally, especially when compared to the global average of approximately 23.79% as of 2021.
Saudi Arabia, while imposing a 20% corporate tax on foreign companies, offers numerous incentives for businesses in specific sectors or regions, such as the King Abdullah Economic City, where strategic investments can benefit from tax holidays and other incentives.
Oman, similarly, offers a competitive corporate tax rate of 15%, coupled with various incentives for investment in free zones and special economic areas, further enhancing its appeal to foreign investors.
2- Quality of Life and Infrastructure: Beyond Numbers
The tax advantages within the GCC are complemented by the region’s renowned quality of life and state-of-the-art infrastructure, making it not just financially viable but also a socially and physically appealing destination for investors and their families.
The GCC countries are known for their high standards of living, with the UAE and Qatar frequently ranking high in global quality of life indices.
The region’s infrastructure is world-class, with massive investments in healthcare, education, and transportation. The UAE, for instance, boasts a healthcare system ranked among the top 10 globally, according to the Legatum Prosperity Index 2020. Its educational institutions are increasingly recognised on the global stage, offering excellent opportunities for investors’ families.
The GCC’s commitment to smart cities, green energy, and sustainable living initiatives is creating an environment that is not only luxurious but also sustainable.
Projects like Saudi Arabia’s NEOM, a $500 billion mega-city project focusing on high-tech industries, and the UAE’s Masdar City, a hub for clean technology and renewable energy, underscore the region’s vision for a futuristic, sustainable lifestyle.
The combination of favourable tax policies and a high-quality living environment makes the GCC an attractive destination for investment migration.
The region offers a unique proposition: the opportunity to enjoy a tax-efficient investment landscape while experiencing a lifestyle marked by luxury, safety, and forward-thinking urban development. This blend is positioning the GCC not just as an economic powerhouse but as an optimal destination for those seeking growth, stability, and a high standard of living.
3- A Holistic Destination for Global Investors
The GCC’s combination of strategic economic initiatives, tax advantages, and high-quality living standards is reshaping its role in the global investment migration landscape.
The region’s golden visa programs are not just policy shifts but are pivotal in attracting global talent and investment, catalysing economic diversification, and fostering sustainable growth.
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What is Next?
As the GCC continues to evolve, it offers a unique value proposition to investors: a chance to participate in its economic renaissance while enjoying a lifestyle marked by luxury, stability, and innovation.
This compelling blend positions the GCC not only as an economic powerhouse but as a comprehensive destination for those seeking growth, opportunity, and a high standard of living.
Finally
To know more about Golden Visas in the GCC region, contact Savory & Partners today to book a comprehensive consultation with one of our experts.
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