Growing Demand for Golden Visas Boosts UAE Bank Deposits

The demand for Golden Visas in the UAE, particularly through bank deposits, is on the rise as millionaires from around the world flock to the region to settle down, especially in Dubai. Local banks have reported a steady increase in interest for these long-term residency visas, requiring substantial investments.

Banks in the UAE mandate a minimum investment of Dh2 million in deposits for a duration of at least two years to qualify for the Golden Visa. Once the investment is made, banks issue a letter of evidence to facilitate the visa application process. Shehzad Hameed, Managing Director of Retail Banking at RAK Bank, highlighted the growing interest in Golden Visas, noting significant inquiries from customers in the UK, Europe, and the Indian subcontinent.

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The 10-year Golden Visa, introduced post-Covid-19, has gained immense popularity among various categories, including entrepreneurs, coders, professionals, outstanding students, scientists, property owners, and high-net-worth individuals. As of May 2024, Dubai alone had issued 158,000 Golden Visas.

Local banks, similar to property developers, have been proactive in assisting high-net-worth clients to secure long-term residency visas. Banks such as Abu Dhabi Commercial Bank (ADCB), Ajman Bank (Wakala Deposit), Al Maryah Community Bank, First Abu Dhabi Bank (FAB), and RAK Bank prominently promote Golden Visa options on their websites to attract deposits from affluent clients.

According to the Central Bank of UAE’s 2023 annual report, the banking sector experienced robust deposit growth, with a year-on-year increase of 15.2% by the end of Q1 2024. This growth was driven by resident retail and private corporate deposits, which rose by 15.3% and 24.2% year-on-year, respectively. Conversely, non-resident deposit growth moderated after negative growth rates in previous quarters.

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RAK Bank has developed a tailored Golden Visa proposition for elite customers, offering assistance with deposits and mortgages. The bank also collaborates with a PRO agency to provide discounted PRO services for Golden Visa processing. Ajman Bank offers a similar service through a Dh2 million Wakala deposit, allowing customers to use the deposit for Golden Visa purposes, managed directly with UAE authorities without the bank’s direct involvement.

As the demand for Golden Visas continues to surge, UAE banks are poised to benefit from increased deposits and an influx of high-net-worth individuals seeking long-term residency in the country.