In June, when announcements were made about an impending raft of changes designed to stimulate the economy, I commented that while it would take time for them to have an effect, the news alone would inject a sense of optimism into a landscape in need of reform.
Yesterday, those promises began to bear fruit.
Others better qualified than I can comment on the economic steps for Abu Dhabi revealed by Crown Prince Sheikh Mohammed bin Zayed, Deputy Supreme Commander of the Armed Forces. I will instead address the Cabinet decision that retired expatriates over the age of 55 will be able to secure a five-year – possibly renewable – residence visa, provided that they meet certain conditions.
This move has clearly beneficial implications. Of course, the new retirement visa isn’t going to be available for everyone. The conditions that retirees must own properties worth at least Dh2 million, have at least Dh1 million in savings or be in receipt of an active income of Dh20,000 a month will for many be onerous or impossible to meet.
Some clarification would be helpful too. Can we assume that married couples who collectively meet these conditions will both be eligible? After the five-year period, will beneficiaries have to prove their financial worth again? And while a property might be worth Dh2 million now, it could be valued differently five years hence. That is great if property prices have risen but what if they haven’t or have fallen?
One also wonders how retirees will be assessed. Will they need to have spent a certain number of years here before qualifying? I heard today, for example, of a businessman living overseas who immediately asked whether, if he immediately bought a property for Dh2 million, he would be entitled to retire in the UAE. If people have spent years here but then left, is there scope for them to invest and then return? All these issues will, no doubt, be clarified in due course.
A number of benefits of the new rule, however, can be immediately identified. One is that it will provide a way for people with the appropriate level of financial resources, who are already living and working here, to retire, should they choose to do so.
There will no longer be that looming feeling as they pass the age of 50 over whether they should plan to leave. Many who have spent years here will certainly consider taking up the option of remaining. While a surge in cash purchases of properties priced at more than Dh2 million might not happen, banks, finance companies and property firms should benefit from a flow of mortgage requests from those now able to look a few years ahead.
The residential property market is currently suffering from problems of oversupply and a downturn in demand. The availability of retirement visas should, in time, provide a useful boost.
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Read more from Peter Hellyer:
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There are other potential economic benefits too. People who can now plan to stay will be more inclined to spend money locally. Rather than hanging on to an old car for a bit longer, perhaps they’ll buy a new one. And rather than sending money home, perhaps some will be spent on a nice but unnecessary luxury item, or on going out for a lavish meal more often.
Shopping malls suffering from a decline in footfall might benefit from such an increase in expenditure. Healthcare providers might profit, too, from the presence of more retired people, as well as companies providing health insurance.
Life isn’t just about economics, though. Perhaps one of the most significant potential benefits from the new visa will be its contribution to social stability. Many approaching retirement age will have brought up children who are now working here. In the past – except in cases where children have been able to sponsor their retired parents – families have been split up.
In turn, children who reach adulthood then have to consider that they, too, will have to leave one day. That has an impact not only on their own decisions with regards to spending, saving and investment but also on family life. It’s widely recognised that children benefit from having grandparents involved in their upbringing. Today, many families here don’t have that option but in the future, they will.
Beyond all that, there’s another benefit for the country as a whole. Each year, as people retire and leave, the UAE loses their knowledge and experience. If even some decide to stay, the nation retains these valuable resources.
Indeed, thanks to another new rule – that people can now start businesses from home – perhaps some retirees will invest time in pursuing a few ideas that would otherwise have been lost to the country and to its economy. That could prove to be of enormous long-term benefit.
There is much to be welcomed about the new decision. It is part of a policy and philosophy of forward-thinking that will serve the country well.
Peter Hellyer is a consultant specialising in the UAE's history and culture
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
The biog
Name: Atheja Ali Busaibah
Date of birth: 15 November, 1951
Favourite books: Ihsan Abdel Quddous books, such as “The Sun will Never Set”
Hobbies: Reading and writing poetry
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
Yuki Means Happiness
Alison Jean Lester
John Murray
Mohammed bin Zayed Majlis
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Tour de France Stage 16:
165km run from Le Puy-en-Velay to Romans-sur-Isère
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
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