Demand for second citizenship rises 73%

Hassan Soukar

Over the past few years there has been a remarkable surge in demand for second citizenships among high-net-worth expatriates living in the UAE. But the spike in interest for acquiring second passports has been all-time high in the first three months of 2018. The whole industry is coming of age. The second passports are not only seen just as status symbol for the super-rich, but increasingly perceived as an integral aspect of their sound financial planning.
An exceptional demand has been witnessed in the first quarter of this year, according to Savory & Partners, one of the largest companies in the Middle East that provides citizenship-by-investment programmes, as residents seek to take advantage of the offers, which usually run for a limited period of time.
Jeremy Savory, CEO & Founder of Savory & Partners, said that high-net worth families in the region contributed a 73 percent increase in second passports demand for the Europe or the Caribbean in the first quarter of 2018.
The top three nationalities that contributed to this rise in demand are Syrians with 41.6 percent, followed by Yemenis with 12.7 per cent, Lebanese with 10.8 percent. Iraq comes fourth with 7.8 percent.
“The first quarter of 2018 saw huge jump in the number of families applying for second citizenship to avail the maximum visa-free travel opportunities and expand businesses,” Mr Savory commented.
This demand was triggered by political and economic instability in the region and compounded by restrictive immigration policies enforced by the United States and the European Union. This has forced many businesspeople to invest for the second citizenship. The fact that the second passport can be attained in just three to four months served as additional incentive. Hitherto, these high-net-worth individuals have been getting their visas renewed without any hassle. They were travelling for business purposes freely. But recently they started to face challenges. So, many of them opted for the second passport.
There were visa rejections from Europe, US and UK, which prompted many well-off individuals to apply for a second passport, especially during the first quarter of this year.
The Caribbean citizenship-by-investment programmes stand apart as applicants can attain second citizenships in less than six-month time without having to move to any of these countries, which relieve them from the need to migrate and disrupt their lives and businesses.

Why second passport?
The second passports can help people avail good business opportunities, family security as well as the freedom of movement.
Jeremy added, “We are one of the few companies in the region to be accredited by all five Caribbean jurisdictions. We are trying to help our clients find the most affordable programme.”
All the countries that have a fast-track citizenship-by-investment programme offer a passport that allows visa-free entry to more than 140 countries, which include Schengen nations in addition to the UK, China, Singapore and Russia.
Caribbean countries also have excellent ties with the countries in the region, which make their passports the most-sought-after for many Middle Eastern investors.
However, selecting the right citizenship-by-investment programme requires some homework. In the Caribbean, like elsewhere, citizenship schemes vary enormously between and within countries, with differences in costs, tax implications, time required for processing applications and residency requirements. Some programmes involve investment in property or business while others simply require donations.

What are the benefits?
The Caribbean citizenship-by-investment programmes are popular since they cost less, take less time to process and in many cases these programmes can also be inherited by future generations. Citizenship of any of the Caribbean islands of St. Kitts, Antigua, St. Lucia, Dominica and Grenada allow visa-free access to the UK and the Schengen area (comprising 26 European countries).
For instance, a Grenadian passport holder can avail visa-free access to Russia and China. The Grenadian passport also carries the potential for a United States E2 treaty trader visa. However, this allows the citizenship holder to live and run a business in the United States. The E2 is considered as a good prospect for many families than a green card.
The Antigua and Barbuda programme runs until the end of September 2018, with the donation amount directed to the country’s National Development Fund. Both Saint Kitts and Antigua require the interested individuals to make realty investment worth $400,000 in the country to qualify for citizenship.
To sum up, businesspeople in the region are in need of freedom of movement around the world and the ability to manage their finances more efficiently. Also, they would like to avail of the infinite merits a second passport can offer—visa-free travel, family security, world-class education, high-standard healthcare system and double tax agreements.