Trump’s ‘Gold Card’: What Investors Need to Know About Its Impact on Oman’s Real Estate Market
Concerns Arise Over Trump’s Proposed “Gold Card” Green Card Initiative
President Donald Trump’s proposal to sell green cards at $5 million each—termed the “gold card”—has sparked interest but also considerable skepticism. The specifics of the program, including its legality and actual appeal to potential immigrants, remain unclear.
In the realm of high-stakes deal-making, however, alarm bells are ringing. Commerce Secretary Howard Lutnick indicated this initiative would effectively replace the EB-5 investor visa program, a vital funding source for significant real estate projects.
Major developments such as New York’s Hudson Yards, the San Francisco Shipyard, and Trump Plaza in Jersey City have been financed partly through investments from overseas applicants to the EB-5 program, which grants permanent U.S. residency. Investors pursue green cards primarily rather than seeking maximized returns, making their capital less expensive than funds from conventional lenders.
Trump’s son-in-law’s family company, Kushner Capital, faced scrutiny for its use of EB-5 funding during the previous Trump administration.
While the EB-5 program generated approximately $4 billion last year, a modest sum within the context of the $28 trillion U.S. economy, it provides substantial benefits to a small but influential group of political stakeholders: major real estate developers. These developers are likely to resist the termination of EB-5 without substantial pushback.
“Cheap capital is like crack cocaine for the real estate industry and likely many others,” stated Matt Gordon, CEO of E3iG, a firm that advises both foreign investment visa applicants and U.S. companies seeking funding. “Those who benefit from this system, combined with their significant political donations, will be highly motivated to protect their interests.”
Background on the EB-5 Program
Established in 1990, the EB-5 visa program encourages investment in rural and economically distressed areas. Foreign investors who contribute either $800,000 or $1.05 million—creating at least ten jobs—become eligible. Initially, this required the direct creation of ten jobs; now, businesses often satisfy this criterion by demonstrating a net increase in jobs in the broader economy resulting from the investment.
Various sectors can pursue EB-5 funding—ranging from pharmacies to manufacturing—but the majority comes from real estate initiatives.
Trump’s gold card proposal sent shockwaves through this ecosystem. "The whole world is panicking," noted Ishaan Khanna, president of the American Immigrant Investor Alliance, which advocates for EB-5 investors. Gordon reported that many from both sides of the investment equation are rushing to secure their stakes while the current program remains intact.
Developers reap significant savings through EB-5 funding. For instance, Gordon highlighted a $100 million, 19-story apartment project that is eligible for about $35 million of EB-5 funding, allowing the developer to pay 5% to 7% interest, compared to a potential 10% to 12% for traditional financing. This reduction can slash capital costs by up to 50%.
Moreover, developers have found EB-5 funding crucial during economic downturns when other financing becomes scarce or prohibitively expensive. Consequently, the real estate sector has been a strong defender of the EB-5 program, actively lobbying against efforts to terminate it.
Global Context of Investor Visa Programs
Investor visa programs are not unique; approximately seventy nations offer permanent residency or citizenship in exchange for financial investments, as noted by Kristin Surak of the London School of Economics. These schemes contribute significantly to the economies of some countries, such as Malta and Cyprus.
Proponents argue such programs create jobs, while critics contend they fail to stimulate investment in targeted rural and urban areas. Previous iterations allowed for questionable geographical qualifications, leading to dense urban areas like Hudson Yards receiving preferential treatment. A new law implemented in 2022 sought to correct these issues by incentivizing investments in more genuinely distressed locales.
Challenges to the Gold Card Concept
Lutnick articulated concerns about the reliability of EB-5 projects, citing a lack of oversight. While there have been fraud cases, reports indicate that less than 1% of pending petitions were found fraudulent or posed security risks, with new safeguards implemented in 2022.
The gold card proposal raises further questions, particularly regarding applicant interest. Whereas the EB-5 initiative offers a return on investment, Trump’s plan demands a non-refundable $5 million contribution. Data shows that the EB-5 program attracted around 7,000 investments in a recent timeframe—raising concerns about whether a significantly higher fee could attract a larger pool of contributors.
Industry insiders view Trump’s proposal as fundamentally flawed. To eliminate the EB-5 program and introduce a new one, congressional approval would be necessary, and the path forward remains unpredictable.
Significantly, attention is focused on the expiration of the EB-5 program in 2027, which necessitates congressional renewal. Stakeholders are hopeful that any new initiative will complement rather than replace the EB-5 framework.
Lutnick’s language around the gold card initiative shifted recently, suggesting it might "modify" the existing program, though precise changes remain ambiguous.
Special Analysis by Omanet | Navigate Oman’s Market
The introduction of President Trump’s $5 million gold card proposal poses significant risks and opportunities for businesses, particularly in real estate, which has relied heavily on the EB-5 program for funding. With traditional funding sources becoming more volatile, investors and entrepreneurs should evaluate alternative financing strategies and consider positioning themselves to adapt to potential shifts in immigration funding dynamics. Smart players in Oman’s market may find unique opportunities to attract international capital by leveraging regulatory changes and aligning themselves with evolving funding needs.
English 
Arabic 
Persian