Hi La vie
We were told to either pay for status change fees and another hassle of submitting documents to change from visit to resident which is AED 550 for each family members (in our case, 4 x 550) or do a visa run. We preferred Visa Run.
For those who are interested to do visa run through Mezayed Border; it worked like a charm and there was no issues as we did exit and entry in our own car. It took less than an hour to complete the whole process. Saved us around AED 1900.
Thanks Lettie for your reply.
Actually, at the time of submitting documents for entry permit in DFRA Abu Dhabi, my husband asked the Immigration officer at desk about this and he said it is possible because in either way the UAE exit takes place.