Expats from emerging markets have found a world of opportunities in the Gulf region but, without a second passport, their long-term prosperity remains unstable.
High net worth individuals from economically or politically insecure countries who are working in the region are increasingly seeking citizenship by investments as means to secure their future and their children’s, explains Mohammed Asaria, founder and board member of Range Developments, an investment and hospitality company.
“The home country of expats working in the region may be riddled with insecurities, from Syria to Algeria or Libya. And, at the end of the day, after a life in the Gulf it is very difficult to go back to such a country,” explains Asaria.
Although Dubai is now offering a 10-year retirement visa scheme, expats from such countries would feel more secure with a second passport and citizenship in hand.
“Say a Syrian marries an Afghani and they want to move out of the GCC, going back to either country is not a viable option right now. You need a mutual country which provides them not only with the freedom to travel the world but also to retire in,” Asaria says.
Retirement aside, a second citizenship also facilities career growth for those working from the region. Last minute international travel for business is difficult for those from countries with passports that limit their ability to travel and hence may hinder their career progress.
“Second citizenship is important for expats who work here because we are part of the cog in the global economy and for an expat to be successful they have to have access to that global reach,” he continues.
Second citizenship
While a second citizenship is prized among high net worth expats from emerging markets, not everyone is willing to put in the time to get a passport from countries like Canada or the US, which require that people live there for a length of time.
“If you’re living in the UAE and making good money in your job, you don’t want to live in Canada for five years and give up the quality of life you have here for a passport,” Asaria says.
This is where CBI kicks in for these expats, with a second citizenship from Grenada opening up doors to educating their children in the US.
Grenada, located in the Eastern Caribbean, is the only CBI country which gives investors access to the world’s largest economy, the US, under the E-2 visa says, Asaria. Because Grenada has been a signatory to the US E-2 treaty since 1983, its citizens can opt to set up their own business in the US and then apply for the E-2 visa.
Their children are awarded the same benefits as US citizens in American universities, meaning reduced fees and a higher chance of admissions (since they apply within the domestic pool versus the international one); they are also entitled to free public high school education.
Tax considerations
Another attractive feature of the E-2 visa versus other US immigration options is that recipients who spend less than 122 days a year in America are not taxed on a worldwide income, “a significant advantage over other options such as the EB-5, which sees holders taxed from the outset,” says Asaria.
Among the benefits of the E-2 visa, which Grenadians can obtain in six weeks, is that the investor’s spouse can join and apply to work anywhere in America.
An E-2 visa, which can generally be obtained in six weeks, allows an investor to live and do business in the US in exchange for a “substantial” investment (minimum recommended threshold is $150,000 in the US). This investment must be in an enterprise that the investor is able to “develop and direct” and at least 50 percent owned by the investor.
Access to the US market aside, citizens of Grenada enjoy travel to over 130 countries — including the UK and many European Union countries such as Germany or France — without the hassle of obtaining a visa prior to departure, another appealing feature for investors from economically or politically unstable countries.
A Grenadian citizenship awards its recipients travel to China, and advantage over other Caribbean peers.
To apply for CBI in Grenada, individuals need to investment a minimum of $220,000 (plus associated government fees) in a Range Developments project in the country.
The luxurious hotel Six Senses La Sagesse Grenada is Range Developments‘ latest CBI offering in the country and is government-approved real estate project. The resort is spread over 28 acres and comprises 100 rooms with over 30 swimming pools. Each suite has an indoor and outdoor living room and a personal pool.