The UAE government is bringing multiple reforms in its bid to boost the ease of doing business and to promote tourism in the country. After Dubai and Abu Dhabi announced their plans to reduce taxes on sales at hotels and restaurant, the cabinet, on Wednesday, adopted a number of strategic decisions with regards to foreign workers’ insurance in the private sector, as well as a legislative package of visa facilitations. The cabinet was chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
At a glance: Major reforms announced by UAE government
Major decline in workers’ guarantee fees
A new insurance scheme for workers’ guarantees has been introduced. The previous mandatory deposit of Dhs 3,000 per worker is now replaced by a new insurance that cost only Dhs 60 annually per worker. The new system aims to achieve a wider coverage of the rights and entitlements for the workers. The value of the insurance policy in the new system is Dhs 60 per year for each worker and covers the workers' entitlements in terms of end of service benefits, vacation allowance, overtime allowance, unpaid wages, worker's return ticket and cases of work injury, in which the insurance coverage amounts to Dhs 20,000 per worker.
The newly created scheme secures workers’ rights in the private sector and reduces the burdens on employers. It allows businesses to recover approximately Dhs 14 billion, representing the value of current guarantees paid by employers, which will enable them to further invest in the development of their business.
Two-year extension of the residency for students
The Cabinet approved a new legislative package, including a review of the current residency system to allow a two-year extension of the residency period for the dependents after finishing their university studies.
No charge for transit passengers
A new decision has also been approved that exempts transit passengers from all entry fees for the first 48 hours. A transit visa can be extended for up to 96 hours for a fee of only Dhs 50. Obtaining a transit visa will be facilitated by a number of express counters at the passport-control hall across UAE airports.
Renew visa without having to leave and re-enter the country
Equally, in a step aimed at simplifying the process and easing the financial burden on individuals wishing to adjust or renew their visa, they can now do so for a fee without having to leave and re-enter the country.
No ‘no entry’ stamp for people overstaying their visa
The cabinet adopted a decision to grant people overstaying their visa a chance to leave the country voluntarily without a "no entry" passport stamp.
Long-stay visa for job seekers
A new 6-month visa will be introduced for job seekers who overstayed their visa but wish to work in the country. The temporary visa enhances the UAE’s position as a land of opportunities and a destination for talents and professionals.
Exemption of fines in case of voluntary departures by illegal immigrants
As for Individuals who entered the UAE illegally, they will have the chance to leave voluntarily with a "no entry" stamp for two years given that they provide a valid return ticket.
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