Qatar offers permanent residency in exchange for investment

MENA

Published: 2020-11-11 11:56

Last Updated: 2024-03-28 07:33


Qatar offers permanent residency in exchange for investment
Qatar offers permanent residency in exchange for investment

Gas-rich Qatar has opened its real estate market to foreigners, granting those who buy homes or shops, temporary or permanent residency, and thus the right to consider the Gulf state their second country.

The plan, announced in September, is the latest in a series of measures aimed at diversifying Qatar's economy away from relying on fossil fuels and attracting foreign capital ahead of the 2022 FIFA World Cup.

Wealthy individuals are being invited to consider investing in the man-made Pearl Island towers in Doha or the new Lusail City project surrounding the World Cup stadium.

The purchase of retail stores in malls also entitles their buyers to obtain residency.

This plan could help deal with the oversupply that left the towers half empty and saw prices in them drop by about a third since 2016, according to the residential real estate price index of the consulting firm Valostrat.

In the past, investors needed sponsorship from a Qatari company or individual to obtain residency, but buying a property worth $200,000 secures temporary residency for the duration of the property's ownership. Buying a property worth $1 million gives the buyer permanent residency and benefits, including free education and healthcare.

"The reason I didn't buy earlier is because there were so many things that were not clear," says Tina Chadha, a Kenyan woman who has lived in Qatar for 15 years. But now she is looking for "a property to live in that I can use to obtain permanent residency," adding, "I think this will allow me to consider Qatar as my home. I feel more comfortable now."

She stated that the residency visa would also allow her to bring her family, especially her elderly parents, to Qatar from Nairobi, saying, "It is a safe country compared to Kenya."

Foreigners can now search for homes in 25 areas in Qatar - most of them in and around the capital, Doha - including nine on a freehold basis and the rest on 99-year leases. 

The Gulf states have long relied on foreign skills and expertise to invest their oil revenues in building major cities, but they have rarely facilitated the settlement of expatriates to reside permanently in them.

Similar schemes exist elsewhere in the Gulf. Dubai offers a ten-year residency visa for an investment of $2.7 million, 40 percent of which is in the real estate market.

Schemes of "golden visas" and investment passports in a number of countries have faced scrutiny over allegations that they have attracted corruption and money laundering.

In Qatar, it remains unclear how attractive the small, conservative country is with strict restrictions on certain freedoms and alcohol sales, for wealthy global buyers.

An investment of 200,000, for example, means buying a 50-square-meter studio in the new Fox Hills project in Lusail, north of Doha, while the $1 million will cover an area of 330 square meters for a sea-view apartment on The Pearl.

"These areas have been identified because they have a new and developed infrastructure ... in addition to a distinctive view of the sea for most of them," said the official at the Ministry of Justice, Saeed Abdullah Al-Suwaidi.

"There is no big demand, but we are trying to encourage real estate investment. We aim to diversify the economy and not depend on oil and gas," he added.

This represents a major change in the Gulf emirate, where 90 percent of the 2.75 million workers hold temporary visas, and most of them work on projects linked to the 2022 World Cup.

"The whole idea is for expats and locals to work together and try to promote a long-term view of Qatar," says one real estate broker promoting the program.

Oliver Essex, a real estate agent at Sotheby's in Doha, said, "With the hype around 2022 (the championship), I think this will naturally create more demand."

In a report issued last month, specialized companies said that residential real estate has not been severely affected by the consequences of the spread of the new Corona virus in Qatar. However, measures imposed to prevent COVID-19 have led to the layoffs of government employees and in private companies, which indirectly led to the migration of a large workforce.

The change in the residency policy comes at a time when Qatar is undergoing economic and diplomatic boycott by its neighbors, which has led to a decrease in the demand for real estate there.