Post by congregatio on Mar 2, 2014 2:17:42 GMT 4
Citizenship for Investment Offers Middle East Residents an Escape Hatch
Posted by Steven Maimes, Contributor - on February 28th, 2014
WSJ Article by Asa Fitch
Regional Turmoil Drives Demand for Schemes That Offer a Second Passport
Arab Spring upheaval has brought a new wave of restrictions for citizens of the Middle East who want to travel the world, driving some wealthy residents to seek second passports in exchange for investments.
Arabs and Iranians, who had already faced tighter limits on their international movements in the aftermath of 9/11, are now finding many countries wary of letting in anyone who might be seeking refuge from the instability of the past three years.
Citizens of Egypt, Tunisia and Bahrain all saw the number of countries they could enter visa-free fall in the aftermath of Arab Spring unrest, according to an index compiled by Henley & Partners, an immigration and investment consultancy firm. But those with means have found an escape hatch.
Dozens of countries offer citizenship-for-investment programs, an opportunity to buy freedom to travel for business or pleasure or to escape a region mired in turmoil. The price tag: about $100,000 and up.
Joseph Ghossoub, a Lebanese advertising executive based in Dubai, described getting another passport as an insurance policy and exercise in hassle avoidance. He recently got citizenship from the Caribbean island nation of St. Kitts and Nevis and is working on Bulgarian citizenship.
“When you hold a passport from a troubled area or a poor country, it’s not fun at all,” Mr. Ghossoub said at a recent conference in Dubai about citizenship for investment.
St. Kitts is a favorite in the Middle East, offering a passport in only about three months for a relatively small investment, as little as a $250,000 deposited in a state-run fund. Another option is to put at least $400,000 in one of several approved real-estate projects that include resorts and condominium developments.
For those who can afford it, the freedom it comes with—visa-free entry into 125 countries including all of Europe—is well worth the price.
In contrast, Lebanese citizens like Mr. Ghossoub can travel to just 38 countries visa-free. Lebanon ranks among countries that face the most travel restrictions, according to the Henley & Partners index. Iraqis can travel to only 31 countries visa-free, the second-to-lowest country on the index. while Syrians and Libyans can go to just 38. In contrast, Americans can enter 172 countries without a visa.
Mr. Ghossoub offered an example of the difficulties he faces, saying his passport might be held in embassies as part of the visa process for 60 to 90 days just to arrange three to six months’ travel. He said that is impractical in today’s business world, when people expect to hop on planes and see each other in a matter of hours or days, not weeks or months.
St. Kitts, Dominica and Antigua & Barbuda, all in the Caribbean, are popular options because of the relative ease of obtaining passports. It takes only a few months and doesn’t require permanent residence.
A Dubai-based company called Range Developments is trying to capitalize on rising Middle Eastern interest by building a five-star Park Hyatt hotel in St. Kitts. A $430,000 investment in the project, slated for completion in 2015, puts investors on track for citizenship.and will also offer a quarterly dividend once the hotel is running.
About a third of those who have invested so far are from the Middle East, according to Munaf Ali, Range’s chief executive.
“With the Arab Spring, I think a lot of people in different groups are thinking about protecting themselves,” said Sam Bayat, a lawyer in Dubai who specializes in helping people secure additional passports. “Either they think the insurgence is going to get worse, or they’re in the group that’s not going to be in favor now, so they think to protect themselves….But definitely we see a rise in the demand,” he said.
Such schemes have also become popular among China’s wealthy to protect assets and ensure freedom of travel.
While lawyers and consultants say St. Kitts has been the most popular choice for the Middle East, the menu of citizenship-by-investment programs is expanding.
The U.K. and U.S. have long offered paths to citizenship for foreign investors. But their programs are less popular in the Middle East because of long waiting times and more stringent residency requirements.
All countries offering the schemes require a background check before issuing a passport, and Some restrictions do apply. St. Kitts recently barred Iranians from applying for citizenship and Iranian applicants have faced difficulties securing passports from other countries since the U.S. ramped up sanctions pressure over the country’s nuclear program.
“Iranians are very restricted with most of these programs,” said Dominik Zunkovic, a manager in Henley & Partners’ Dubai office. “It’s pretty much down to zero.”
source:online.wsj.com
Posted by Steven Maimes, Contributor - on February 28th, 2014
WSJ Article by Asa Fitch
Regional Turmoil Drives Demand for Schemes That Offer a Second Passport
Arab Spring upheaval has brought a new wave of restrictions for citizens of the Middle East who want to travel the world, driving some wealthy residents to seek second passports in exchange for investments.
Arabs and Iranians, who had already faced tighter limits on their international movements in the aftermath of 9/11, are now finding many countries wary of letting in anyone who might be seeking refuge from the instability of the past three years.
Citizens of Egypt, Tunisia and Bahrain all saw the number of countries they could enter visa-free fall in the aftermath of Arab Spring unrest, according to an index compiled by Henley & Partners, an immigration and investment consultancy firm. But those with means have found an escape hatch.
Dozens of countries offer citizenship-for-investment programs, an opportunity to buy freedom to travel for business or pleasure or to escape a region mired in turmoil. The price tag: about $100,000 and up.
Joseph Ghossoub, a Lebanese advertising executive based in Dubai, described getting another passport as an insurance policy and exercise in hassle avoidance. He recently got citizenship from the Caribbean island nation of St. Kitts and Nevis and is working on Bulgarian citizenship.
“When you hold a passport from a troubled area or a poor country, it’s not fun at all,” Mr. Ghossoub said at a recent conference in Dubai about citizenship for investment.
St. Kitts is a favorite in the Middle East, offering a passport in only about three months for a relatively small investment, as little as a $250,000 deposited in a state-run fund. Another option is to put at least $400,000 in one of several approved real-estate projects that include resorts and condominium developments.
For those who can afford it, the freedom it comes with—visa-free entry into 125 countries including all of Europe—is well worth the price.
In contrast, Lebanese citizens like Mr. Ghossoub can travel to just 38 countries visa-free. Lebanon ranks among countries that face the most travel restrictions, according to the Henley & Partners index. Iraqis can travel to only 31 countries visa-free, the second-to-lowest country on the index. while Syrians and Libyans can go to just 38. In contrast, Americans can enter 172 countries without a visa.
Mr. Ghossoub offered an example of the difficulties he faces, saying his passport might be held in embassies as part of the visa process for 60 to 90 days just to arrange three to six months’ travel. He said that is impractical in today’s business world, when people expect to hop on planes and see each other in a matter of hours or days, not weeks or months.
St. Kitts, Dominica and Antigua & Barbuda, all in the Caribbean, are popular options because of the relative ease of obtaining passports. It takes only a few months and doesn’t require permanent residence.
A Dubai-based company called Range Developments is trying to capitalize on rising Middle Eastern interest by building a five-star Park Hyatt hotel in St. Kitts. A $430,000 investment in the project, slated for completion in 2015, puts investors on track for citizenship.and will also offer a quarterly dividend once the hotel is running.
About a third of those who have invested so far are from the Middle East, according to Munaf Ali, Range’s chief executive.
“With the Arab Spring, I think a lot of people in different groups are thinking about protecting themselves,” said Sam Bayat, a lawyer in Dubai who specializes in helping people secure additional passports. “Either they think the insurgence is going to get worse, or they’re in the group that’s not going to be in favor now, so they think to protect themselves….But definitely we see a rise in the demand,” he said.
Such schemes have also become popular among China’s wealthy to protect assets and ensure freedom of travel.
While lawyers and consultants say St. Kitts has been the most popular choice for the Middle East, the menu of citizenship-by-investment programs is expanding.
The U.K. and U.S. have long offered paths to citizenship for foreign investors. But their programs are less popular in the Middle East because of long waiting times and more stringent residency requirements.
All countries offering the schemes require a background check before issuing a passport, and Some restrictions do apply. St. Kitts recently barred Iranians from applying for citizenship and Iranian applicants have faced difficulties securing passports from other countries since the U.S. ramped up sanctions pressure over the country’s nuclear program.
“Iranians are very restricted with most of these programs,” said Dominik Zunkovic, a manager in Henley & Partners’ Dubai office. “It’s pretty much down to zero.”
source:online.wsj.com
