My wife and I are approaching retirement. I have read that there are issues with property visas and that the UAE no longer provides you with residency. We have considered buying into one of the big Omani developments. Do you know what the situation is regarding residency there? BC, Dubai
It appears that the UAE Government is not issuing residency visas with the purchase of property, although at least one developer states that it is possible to obtain a six month, multi-entry visa upon completion of the purchase. This does not offer any real security and has made some prospective purchasers rather wary. The latest guidance from the Oman government is that property visas will be issued to foreigners if they purchase property. The residency visa is issued only after the title deed has been transferred into their name. The buyers may also apply for visas for their families and parents. While the property is under construction, purchasers can obtain multiple three-week visiting visas, assuming they have not entered on a 28-day tourist visa. The residency visas will be cancelled on the sale of the property. As a side note, the Ministry of Labour has confirmed that the UAE retirement age will increase from 60 to 65, which means that expats may secure work visas for longer.
My father owns an apartment in Dubai and he would like to leave the property to his daughters, including myself. We are American citizens. He has executed a will in Dubai doing just that, but he is concerned that Sharia law could prevent him from transferring this asset to women. He said there was an amendment to UAE civil law loosening Sharia controls for foreign wills due to the influx of expatriate money into property, but he believes that the validity of this amendment is now in question. He is not married to my mother, but to a second wife. I have two questions. First, is it a problem if he just leaves the will in place? Will the property pass to us without glitches despite the fact that we are women (he has no male children) and he has a spouse? Second, is it possible to leave the property to a trust with us as the beneficiaries, and perhaps have a male trustee (one of the brothers-in-law) to ensure that it remains safe? FM USA
If an expatriate has a properly drawn up will, translated into Arabic and attested, then it is likely that his wishes will be observed. Sharia law is observed in the UAE and this states that male heirs take precedence, but the final decision rests with the courts. To my knowledge, non-Muslim expatriates are generally treated differently, provided they have a proper will, but no one can give you an absolute guarantee. For people of most nationalities, they should have one will only, although this should include details regarding assets held anywhere in the world. There was an announcement from Dubai courts a few months ago regarding the handling of expatriate assets upon death, although this was a statement of intent, not a law. Overall, it is considered unlikely that the apartment would not be passed to the preferred beneficiary, provided the terms of the will are fair. If the property is owned outright and there is no mortgage, then your father can transfer ownership to an offshore company. He would be the shareholder, and on his death can specify that the shares are passed to you and your sisters upon his death.
I find the new labour laws confusing and contradictory, so could you clarify some points for me, please? For those who leave their employer, does the dismissal of a six-month working ban and no-objection letter by the Ministry of Labour relate only to those workers who have unlimited contracts? My understanding is almost all companies in the UAE issue contracts that are limited. Second, are all the new laws applicable for workers who already have a work permit for three years with a limited-period contract? Finally, my employer has not given me a salary for the last three months, thus he has violated his contractual obligation. Can I change my job or return to my country by cancelling my work permit any time under the new law? Will this rule be applicable to me or only for those who have an unlimited contract? TH, RAK
In my experience, there are as many people on unlimited contracts as there are limited ones and the information that I have seen states that this new rule will apply to everyone with immediate effect, no matter if someone has a three-year residency visa or one of the new two-year visas being issued this year. The new rules state that anyone who has completed two years of service with one employer and leaves on good terms will not receive a six-month ban. Anyone who is part-way through a six-month ban will now have it lifted, and can apply for new work permits immediately. In respect of your last question, if an employer has not paid an employee for a three-month period, the employee may leave the employment and will not face a ban. This law has been in place for some time and has not changed. You may also lodge a formal complaint with the Ministry of Labour to try and get the money owed to you.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Write to her at keren@holbornassets.com with queries for this column or for advice on any other financial planning matter.
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