[UAE] Citizenship for select foreigners in bid to boost economy

The UAE intends to offer citizenship to a select group of foreigners, making it the first Gulf Arab nation to formalise a process aimed at giving expatriates a bigger stake in the economy, Business Times reports.

This major policy shift was revealed on January 30. It is geared towards attracting talent to better boost growth in the UAE, which is home to the Middle East's finance and travel hubs and millions of expat residents.

Stock markets in Dubai and Abu Dhabi did not dramatically react to the announcement; benchmark indexes in both cities lost about 0.5 per cent on January 31.

Foreign residents have been a mainstay of the UAE’s economy for decades and comprise more than 80 per cent of the population of the UAE's seven sheikhdoms. However, a clear path to citizenship was lacking for them; even those born and raised in the country.

As oil-rich Gulf states seek to attract investment and diversify, they have been forced to consider longer residency and limited citizenship for foreigners.

Until now citizenship in the UAE - and some other Gulf states - has only been reserved for foreigners in special cases, including for service to the state. These changes will formalise and broaden such a process.

"The new directives aim to attract talents that contribute to our development journey," Prime Minister Sheikh Mohammed bin Rashid Al Maktoum said.

Business Times looks at what the change will mean.

The UAE intends to offer citizenship to a select group of foreigners, making it the first Gulf Arab nation to formalise a process aimed at giving expatriates a bigger stake in the economy, Business Times reports.

This major policy shift was revealed on January 30. It is geared towards attracting talent to better boost growth in the UAE, which is home to the Middle East's finance and travel hubs and millions of expat residents.

Stock markets in Dubai and Abu Dhabi did not dramatically react to the announcement; benchmark indexes in both cities lost about 0.5 per cent on January 31.

Foreign residents have been a mainstay of the UAE’s economy for decades and comprise more than 80 per cent of the population of the UAE's seven sheikhdoms. However, a clear path to citizenship was lacking for them; even those born and raised in the country.

As oil-rich Gulf states seek to attract investment and diversify, they have been forced to consider longer residency and limited citizenship for foreigners.

Until now citizenship in the UAE - and some other Gulf states - has only been reserved for foreigners in special cases, including for service to the state. These changes will formalise and broaden such a process.

"The new directives aim to attract talents that contribute to our development journey," Prime Minister Sheikh Mohammed bin Rashid Al Maktoum said.

Business Times looks at what the change will mean.