UAE looks to eliminate foreign ownership limits, extend residency visa duration,
UAE could eliminate foreign ownership limits, extend duration of residency visas: The UAE is expected to lift foreign ownership limits on local companies, allowing foreign investors 100% ownership by the end of the year, according to the UAE’s news agency WAM. The new policy also grants 10-year visas to foreign workers in the medical, scientific, research and technical fields. Scientists, innovators and “exceptional students” will be granted 10-year visas as well. Those studying in the UAE will see their visas extended to five years. “We expect a significant positive effect on foreign direct investments,” said Jaap Meijer, managing director and head of equity research at investment bank Arqaam Capital tells Bloomberg.
A boon to a sickly property market? “The decision should also help net immigration, which should significantly alleviate the current pressure on housing markets,” Meijer added. Faisal Durrani, global head of research at property broker Cluttons, feels that the move would go a long way to stimulate demand in the country’s ailing real estate market. “The property markets across the U.A.E. have been dogged by challenges ever since oil prices collapsed nearly four years ago, ranging from the threat of oversupply, to the lack of affordable housing,” he tells Bloomberg.
Other international finance / business / econ / political news that should be on your radar this morning:
The largest hedge fund launch ever will take place in early June when a star fixed-income trader launches a USD 8 bn fund that has already hired dozens of readers to run bonds and equities in New York and London. (Financial Times)
The Trump Administration is ratcheting up the hawkish rhetoric on Iran, threatening to deepen economic sanctions unless the country back out of Syria and dismantle its nuclear program, Reuters reports. The US also closed a loophole by which China would allegedly evade anti-dumping duties by exporting through Vietnam, the newswire says.
Italy is one step closer to having a government after the populist Five Star Movement and the far-right League reached a possible consensus on a prime minister. Both supported the nomination of academic and non-politically-affiliated Giuseppe Conte. Needless to say, it’s not looking great for Italy’s sovereign bonds. (Financial Times)