Visa-free schengen access unlocks door for uae investors

Photo credit: Pepe Rodmon

The recent decision to allow visa-free access for Emiratis to the Schengen zone has "unlocked the door" to UAE investors, says Cluttons.

The move by the EU makes the United Arab Emirates the first Arab country to be allowed free entry to the 26 countries, which means Emiratis can stay in any of the Schengen nations for 90s days within a 180-day period.

Combined with non-Schengen countries Bulgaria, Croatia, Cyprus, Romania, the Vatican, Andorra, San Marino, Monaco, tehe UK and Ireland, Emiratis can now enter up to 100 countries without a visa.

This increased accessbility is forecast to bring a "significant potential upturn in cross-border property investment", says Faisal Durrani, international research manager.

Indeed, European property markets have increasingly sought to attract non-EU buyers through "Golden Visa" schemes, offering residency in exchange for investment.

Property buyers from the Middle East, particularly the GCC, invested $14.1 billion outside their home region in 2014, according to CBRE, with Europe accounting for $10.2 billion of that amount.

Investors from outside of the Middle East have already been returning in droves to Europe, as recovering prices and economies in Portugal and Spain encourage optimism in countries where property prices remain highly affordable.

"The added benefit of the weakness of the euro means that dirham buyers are now about 23 per cent richer than this time last year in euro terms," adds Faisal. "This makes an EU-based property investment attractive."

"The rich Islamic heritage of Southern Spain is likely to add to the overall appeal to GCC buyers," Joanna Leverett, head of Cluttons’ international residential agency, tells the Khaleej Times.