‘Should I invest with a company offering me 3% returns per month for three years?’

Question: I was contacted by a company offering an investment that looks like a great opportunity . If I send them Dh200,000 ($54,458), they promise to offer a return of 3 per cent per month after the first two months. They also promise to return my entire investment after three years. The company says it is established in India and has recently set up in the UAE, with claims to have government backing. They have a smart office, however, I am concerned because they are pushing me to write a cheque to the company owner. When I asked why it wasn’t paid to the company or through bank transfer, they said it was to save on fees. The website has only one page, but the company says it is because they only do business in person and through WhatsApp. What should I do? SP, Dubai Answer: An offer like this just screams scam! There is no such thing as an investment that is fully capital-protected and pays the equivalent of 36 per cent each year. Never be fooled by a smart office and always be wary of anything that looks too good to be true as it invariably is a way of conning people out of their hard-earned money. The lack of a proper website and the pushiness have already alerted SP, but no one should give money to any company without knowing that they are genuine. Any legitimate investment company will have a proper website and be registered with a regulatory body such as the Central Bank of the UAE, Dubai Financial Services Authority (DFSA) or the Securities and Commodities Authority. All payments should be to the investment company and never to an individual. Genuine investments do not promise such excessive returns, will have full paperwork with all details, and all advice should be in writing. None of this was the case and this fake company will disappear with SP’s money. Unfortunately, there are far too many scammers preying on people in the UAE who want to make money fast. This is not realistic and most people will lose all their money. Always listen to and invest only with known and regulated companies. Q: My son is 17 now but I am planning ahead as he turns 18 at the end of this year. He doesn’t plan to go to university and we have agreed that he can stay with us while he figures out what to do. How can he stay legally in the UAE ? What will happen to his visa as we are sponsoring him ? RH, Abu Dhabi A: It used to be the case that it was not possible to renew the residency visas of expatriates’ sons once they reached the age of 18. They could either have a student visa if studying in the UAE or a work-related one, but that situation has changed. “A male or female resident can sponsor his/her son/s until he is 25. Sons of determination [those with special needs] can be sponsored with no restrictions with regard to his/their age/s,” according to the UAE government. This provides more flexibility to families. Note that should RH’s son take up employment while still sponsored by a parent, the employer must still provide him with a work permit . Q: I lived in the UAE for four years until 2021 and returned to India. I served notice to my company, so my visa was cancelled but I didn’t cancel my mobile telephone account. I used it after leaving the country, too. I want to go back to the UAE for another job now but know there is a bill that I didn’t pay. Is there a chance that the UAE immigration authorities can detect my unpaid bill and stop me from entering the country? What can I do to return without this being a problem? SP, India A: If someone does not pay a bill with one of the telecommunications companies and it is outstanding for some time, the company has the right to register a police case against the individual and this could lead to an immigration ban. If this is the case, SP could find that he is banned from re-entering the UAE. As he knows that there is an outstanding bill, SP needs to contact the company to whom he owes money and arrange to settle this before attempting to return to the UAE. He is legally obliged to pay the bill, so the most logical course of action is to repay the debt sooner rather than later. Contact Keren Bobker at keren@holbornassets.com or at www.financialuae.com The advice provided in our columns does not constitute legal advice and is provided for information only