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Austrian feels cheated by change in UAE visa law

Property owner feels cheated by change in residence visa law for investors

Image Credit: xpress /virendra saklani
Dr Horst Hoeller was issued an investor’s visa when he bought his JBR homein 2007. However, he was informed this year that investor’s visa no longer exists

Dubai: When Dr Horst Hoeller bought his three-bedroom flat in Jumeirah Beach Residence in 2003, his intention was clear: buy a property in order to obtain an investor's residence visa, so that he can retire from his position as Managing Director of 3M Gulf, retain his cars, pump euros into his UAE bank accounts and enjoy winter in Dubai and summer in Austria.

However, at the time of renewal of the investor's visa in October, things went awry. Hoeller was informed by Tecom (which deals with visa issues for JBR investors) that investors' visas are a thing of the past. "I've been a retired man for the past four years. I bought this property thinking it would be my ticket to stay here. If the rules had changed, I should have been informed," says the Austrian.

Hoeller had already transferred approximately 2 million euros (Dh10 million) into his bank account here with the intention of investing in the UAE.

Pointless exercise

"Without a residence visa, I can't have a local bank account, get a driver's licence, own cars, apply for visas… Shockingly, when I made an appeal to Tecom, I was informed that the best they could do at this point is issue me a six-month multiple-entry visa."

This is pointless, seeing that citizens of the European Union don't need a visa to enter Dubai. "With a tourist visa, I would have to sell my cars, give up my business deals, not to mention all the money I'd saved for investment here," he says.

"Fortunately, I was able to buy enough shares in a company to be made a partner, and get a residence visa at such short notice," says Hoeller. Those shares didn't come cheap. Hoeller paid Dh100,000 plus expenses out of his savings.

"As a European, we're used to being able to trust the authorities of our country. If and when changes are made to a law, they apply from that point onwards. They don't backtrack and renege on an agreement or deal that was provided to the people in the past," he said.

Hoeller talks of friends and neighbours who are now looking to sell their properties at JBR and The Palm due to the change in law.

"The first handovers in JBR commenced in 2007. All homeowners at the time were given the investor's visa. And like me, I'm sure the majority of those visas have expired or are about to soon."



Latest Comment

I am one of the many investors who bought property in Dubai for the sole reason that I shall get a residence visa. A few months back, I contacted Emaar and just as in the case of Dr Horst Hoeller, I was told: “No residence visa”! But what about re-registering my car? My bank account? A new phone connection? “Not our problem,” was all that I got as an answer!I have spent 35 years in this country as a company owner. I have now sold my business thinking that I could now retire and spend my savings on my own property in Dubai. As a European, I get a tourist visa when I enter the country, but I have to leave every month and cannot re-register my car. Unlike Dr Horst, having just sold a long established and very profitable business, I really do not wish to re-start a new business from the scratch just for the purpose of residing here.With the free fall in property prices and the difficulty that realtors are facing in selling empty villas and apartments, authorities must offer some facilities to property owners and new buyers. This may help the economy of the nation and by way of consequence, all other sectors may benefit too! Who can we now trust?


13 November 2010 14:38jump to comments