02.03.2017, Moscow. Expert opinion.
DENIS KARASYOV, PRESIDENT PANGAEA INVESTMENT COMPANY
While talking to a group of investors from the Middle East, I have noted that their reaction to the intensified immigration policy of the new US administration is quite negative. However, during careful analysis, it becomes apparent that a greater degree of their negative assessment of the new president Trump’s decrees is related primarily to religious and purely human element rather than to the business as it may seem to many people at first glance. Having been working for many years in the Middle East in the provision of services for EB5 program, I can say with full confidence that the Middle East, the United Arab Emirates in particular, is NOT the right place where this business area has a great future. It's very ambiguous.
Despite the fact that many businessmen in the United States would like to believe that the UAE is a magical place where the gold is flowing from the stream, and hundreds of people with bags full of money just run about and dream to invest it in the EB5, but the reality is quite different. Or to be more accurate in the saying, then it is absolutely the other way round. Having lived in the Middle East for many years, I have participated in major exhibitions, seminars, I have collected a large base of investors, with whom we have a very close cooperation till nowadays, and we are constantly in touch.
Alas, as I said, some US businessmen rather prefer to follow their dreams blindly, than to have a sober look at the situation and use the experience and knowledge of those who know and understand this region well. As a result, hundreds and hundreds of companies are losing a lot of money and that the worst thing is that they lose their time that could be used for more productive work in other regions.
Every business begins with a market study. Figures are the best businessman’s helpers. Coming into a new market with their product you initially need to examine the demand and assess the chances of relying not only on your dreams and plans to drink coffee with the sheiks sitting on the luxury yachts, but also on the real facts and figures. You should always take into account the local and national characteristics and mentality as well.
The indigenous population of the UAE - it is not more than 20% -25% of the total population, for whom the receiving of the US citizenship is not only unprofitable, but is also prohibited by local law. The rest of the population are the foreigners, which are divided into two main groups: those who came looking for a job, that is, those who are not interested in EB5 industry, simply because they do not have sufficient capital to participate in the EB5 program. But such group, which does have such features, arrived in the United Arab Emirates UAE only because it’s the most comfortable place to live and do business for them. There are almost no taxes, full freedom of movement and life. It should be understood that the richest part of the population mainly come from Iran, Syria, Yemen, Iraq, Kuwait, Saudi Arabia, Qatar, Bahrain, Libya and India (mostly Muslims). They are mostly the natives from those countries that are in that list of the countries listed in the Donald Trump’s decree. Unlike investors from China, who on receiving an American passport, actually attain freedom, including freedom from the communist regime, investors from the Middle East lose that freedom, on obtaining a US passport.
That is why the EB5 business has never been so successful in the Middle East, and in the light of the new Trump’s decrees, entering this sphere, business is likely to die or go into a kind of coma.
At the same time, many businessmen are now actively trying to enter the Russian market. Unfortunately, in the wave of a comprehensive anti-Russian propaganda in the United States and anti-American propaganda in Russia, the US businessmen do not hear that in the last two years the number of people in Russia who are interested in the US as a country for living and investment, grew by 36%. The Russians began investing in residential and commercial property United States actively, seeking ways of obtaining citizenship. Every day we get 10-15 inquiries on how to immigrate to the United States and some of these requests come from very wealthy people, who sometimes do not have a clue that there is a program like the EB5. It is also obvious that the average businessman in the United States did not even guess about that for the last two years, during the exact two years when Russia was under sanctions, hundreds and hundreds of business people from the United States are planning or already actively investing in Russian projects in the field of residential and commercial real estate, development of production, animal husbandry, energy, high technology.
Business in the real sector of the economy of the two countries seeks for common ground, seeks and builds cooperation, in spite of any political slogans, and these businessmen have no tantrums. With each passing day more and more companies from the United States, regional centers, law firms, investment companies, companies in the field of real estate sales and tourism are asking us for help and assistance for their entry into the Russian and CIS markets. Companies are looking for the reliable partners in Russia in the sphere of investment and marketing to promote their services and capabilities. This is a real potential for a successful long-term business. Efficiency of every dollar invested must be maximized. Those businessmen, who were able to abstract away, (I want to emphasize the temporary and artificial political hysteria), are actively looking for ways, they are already building bridges and are already starting to receive the income. There is no doubt that this trend will continue and will only grow.
US Government immigration program EB-5, was founded in 1990 by United States Congress. Program presents an opportunity to obtain residence permit – Green Card and later on a US citizenship through investments in to business projects approved by US government for EB5 Program. Read more>>