Suresh Rajan tells you that with the uncertainty surrounding H-1B visa programme, the EB-5 has become increasingly preferred
The EB-5 Immigrant Investor Program was created by the US Congress in 1990 to stimulate economic growth through job creation and foreign capital investment. With the current uncertainty surrounding the H-1B visa programme, the EB-5 visa has become increasingly preferred and is considered the most secure route.
According to the latest EB-5 Investor Markets Report — comprised of the filing statistics of I-526 petitions — the following are the global EB-5 visa demand trends:
ASIA DOMINATES
In 2015, Asia accounted for seven of the sixteen biggest EB-5 investor markets. leading Asian markets such as China, India, Taiwan, Vietnam and South Korea accounted for 90per cent of all I-526 immigrant petition filings. These Asian countries have contributed around $7.3 billion in EB-5 capital investments.
CHINA IS THE FRONT-RUNNER
With over 13,500 I-526 immigrant investor petitions filed in 2015,China remains the dominant EB-5 investor market in the world. China’s share of petition filings has witnessed a 39 per cent increase from 2014, when 9,722 petitions were filed. China has also contributed the most capital of any country, an estimated $6,765 million. Despite challenges such as a backlog in the number of visas allocated to Mainland Chinese investors, the data still shows that Chinese demand for EB-5 visas has risen significantly since 2008.
THE NEXT BEST AlTERNATIVE
With annual growth of over 100%, India and Vietnam have become the most important alternatives to China for raising EB-5 capital. Vietnam and India have contributed approximately $145 million and $120 million, respectively. Both these countries more than doubled their I-526 petitions in FY 2015. India increased from 99 petitions in 2014 to 239 in 2015, whereas Vietnam grew from 127 to 289.
Vietnam and India are burgeoning markets, and lCR has been able to capitalise extremely well on the growth opportunity in India.
We as an EB-5 market leader, have had a permanent presence in India for some time and is regularly visited by the firm’s senior management. Indians’ interest in the EB-5 Visa opportunity has risen tremendously over the past few years, with investors placing emphasis on educational and career opportunities for their children.
THE RISING STARS
Brazil and Venezuela are at the top of the list of rising markets. Brazil stands out with a significant jump from 50 to almost 230 I-526 petition filings from 2014 to 2015, and in 2015 alone Brazil contributed an approximate $115 million in EB-5 capital. Additionally, Brazil is the only EB-5 investor market to have shown a triple growth rate from FY 2014 to 2015 and a more than 2.5 growth rate from FY 2013 to 2014. Venezuela is the second largest EB-5 investor from latin America.
With an annual growth rate of 141 per cent, more than 120 investors from Venezuela filed their I-526 petitions in 2015, contributing over $60 million in EB-5 capital.
In the past few years, known global hospitality and restaurant franchise brands like Four Seasons Hotels and Residences and Dunkin Donuts, have used EB-5 investment capital to fund their projects. State and local Governments have also established inroads into the regional centre business.
This has contributed to raising the profile of the EB-5 Visa and has brought more market awareness to the programme’s sponsors. Regional centers have proven beneficial and safer for investors.