As barriers to international movement diminish and global mobility reaches unprecedented levels, more individuals are choosing to establish their lives in new countries.
According to the United Nations Department of Economic and Social Affairs (UN DESA), the number of international migrants reached an estimated 281 million in 2020, which is about 3.6 percent of the world’s population.
Many relocate for economic opportunity, to broaden their academic and professional horizons, to reunite with loved ones or to escape political instability. For some it’s simply the lure of cultural exploration or a more favourable climate. Whatever the motives, now, more than ever, people are choosing to live in a country other than the one of their birth.
The Gulf: A magnet for expatriates
In the Gulf region this trend is particularly pronounced. The UAE, for example, has one of the highest ratios of expatriates to citizens in the world, with expats making up approximately 90 percent of the population. Qatar boasts a similarly high expat population, with foreigners constituting around 85 percent of its residents.
This is primarily fuelled by the region’s rapid economic development and the high demand for skilled labour.
Economic diversification and opportunities
Most GCC countries have launched plans or policies aimed at diversifying their economies away from oil dependence and these have had significant success.
In the UAE, the transformation has been remarkable, with non-oil sectors now fuelling around 70 percent of the country’s GDP. Dubai, in particular, stands out for its diversified economy, where trade, logistics, tourism, and finance serve as the backbone of its economy.
It’s also pronounced in other countries. Qatar’s non-oil sector accounts for over 50 percent of its GDP, driven by growth in construction, manufacturing, and services and in Bahrain, the financial services sector is the second-largest contributor to GDP at 16.7 percent of total.
These successes have created numerous opportunities for both local and international businesses, opening up new avenues in sectors such as technology, renewable energy, healthcare, and education to name just a few. This broadening of the economic landscape has also attracted foreign talent.
Who’s moving and why?
Most of these come from Asia, attracted by the promise of competitive salaries, career advancement opportunities, and the chance to work in a rapidly developing economic landscape. Professionals from countries like India, the Philippines, Pakistan, and Bangladesh are drawn to sectors such as construction, healthcare, and technology, where their expertise is in high demand. The potential for financial security and the ability to support families back home also adds to the appeal.
The Gulf region also sees a significant influx of European and British expats, though for this group the motives are often different. The main attraction often lies in the tax-free incomes on offer, which, when coupled with competitive salaries, results in a substantially higher disposable income compared to their home countries. This allows them to enjoy a higher standard of living, indulging in luxuries and savings that might be harder to come by back home.
Ease of business and investment
The ease of starting a business in the Gulf region, particularly through the innovative framework of free zones, adds another layer of appeal. Taking the UAE as a prime example, the country boasts over 40 free zones, each designed to facilitate the smooth launch and operation of businesses.
These zones not only simplify the company setup process but also offer numerous advantages such as 100 percent foreign ownership, exemption from taxes, and the full repatriation of profits. It’s a unique combination of benefits that not only lowers the barriers to entry for new ventures but also provides the potential to access the emerging markets of the MEASA region.
Changing perspectives on long-term residency
Not all migration is inward though. While the Gulf states have always been magnets for expatriates seeking better opportunities and higher earnings, the idea of settling down permanently in the region is rarely on the cards for most.
Typically, expats have viewed their stint in places like the UAE, Qatar, or Bahrain as temporary, planning to return home or move westward to countries like Canada, Australia, or parts of Europe after a few years. Their reasons range from seeking long-term residency and retirement plans to wanting citizenship in countries with familiar and recognisable social welfare systems.
Some still do. However, the tide is beginning to turn. Recent policy reforms in the Gulf are starting to paint a different picture, one where expats can more realistically consider making these countries their long-term home. The UAE, for instance, has introduced retirement and golden visas, opening up new paths to longer residency.
There’s also been a move to allow expatriates to own freehold property in designated areas, adding to the appeal of investment in the region. Additionally, the easing of job mobility restrictions, including the removal of the need for a no-objection certificate (NOC) from employers for employees wanting to switch jobs, is giving expats more freedom and flexibility in their careers. These changes are not just making it easier for people to plan for their futures in the Gulf but also signalling a shift towards more expatriate-friendly policies.
Navigating options: UAE and beyond
Exploring your options for residency in the UAE or relocating to other countries presents a world of opportunities. From the UAE’s Golden Visa to various residency by investment programmes worldwide, there’s a pathway to suit almost every need and ambition. Whether you’re drawn by the allure of the UAE’s dynamic economy and inclusive policies or the appeal of setting down roots in a new country for greater security, freedom, and quality of life, understanding the available options is key.
As the world becomes increasingly interconnected, the decision to move abroad is more accessible and appealing than ever. With the right guidance and understanding of your options, you can navigate the complexities of global immigration to find the perfect fit for your personal and professional goals.
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