The Donald Trump administration’s recent decision to impose a substantial $100,000 fee on new H-1B visa petitions is being seen by many as a potential catalyst for a major migration of skilled global talent, particularly to the United Arab Emirates (UAE). According to recruitment and education experts in the Gulf, the drastic increase in cost could make the US a less attractive destination for both companies and foreign professionals, strengthening the UAE’s position as a burgeoning tech hub.
In a presidential proclamation signed on September 19, 2025, President Trump stated that the H-1B program has been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.” He argued that this abuse has undermined the nation’s “economic and national security” and that the new fee will ensure only “extraordinarily skilled” individuals enter the country. The one-time fee, which applies only to new petitions submitted after September 21, marks a significant jump from the previous fees of around $2,000 to $5,000.
This policy change has sent shockwaves through the global tech sector, especially in India, which accounts for the majority of H-1B visa holders. The cost hike is expected to cut into the operating profits of major Indian IT firms, forcing them to rethink their business models.
Recruitment consultants in the UAE believe that the new US policy will serve as a blessing in disguise for the Gulf nation. Mahesh Shahdadpuri, Founder & CEO of TASC Group of Companies, told Gulf News that the new rule will likely make both companies and skilled professionals consider the UAE as a more viable alternative. He highlighted the region’s numerous advantages, including a tax-free income environment, a world-class lifestyle, and advanced infrastructure. With the UAE already investing billions into artificial intelligence (AI), he noted that major tech companies with offices in the region, such as Meta, Microsoft, and Google, will be motivated to “attract and hire more here… to develop services for their global operations.”
Dr. Sathya Menon, Group CEO of Blue Ocean Corporation, specifically pointed to Dubai as a prime beneficiary. He argued that Dubai’s capacity for expansion and its status as a “second home for most people” gives it a competitive edge over other tech hubs like Singapore.
While the new H-1B visa fee is intended to protect American jobs, critics argue that it could have the unintended consequence of stifling American innovation and driving top talent to more welcoming nations, with the UAE poised to capitalize on this shift. The long-term effects of the policy on the global tech landscape remain to be seen, but early signs suggest a potential remapping of where innovation and talent will flourish.