The DLD, founded in May 1960, registers real property rights, including freehold titles, usufruct, musataha, and long-term leases in Dubai. However, the Dubai International Financial Centre (DIFC) free zone operates under its own property laws and maintains a separate property register for real estate within the DIFC. For guidance on Dubai property investment, Khairallah Law Firm offers expert advice on navigating these regulations.

Dubai property investment

Who Is Eligible for Ownership in Dubai Property Investment?

UAE and GCC nationals (being either natural persons or entities) and companies incorporated outside free zones of the UAE, which are completely owned by such individuals, can have absolute ownership over lands in Dubai, irrespective of their location, according to Dubai property ownership rules outlined in Article 4 of the Property Ownership Law. Public joint stock companies can also buy properties in Dubai no matter where they are located. Based on our track record, we are aware that, yes, the DLD permits companies listed in Dubai or UAE public joint stock companies (including those based in other GCC countries) to own real estate anywhere within Dubai.

For Article 4 of the Property Ownership Law, a company incorporated in UAE is not considered an Owner if only non-offshore or GCC shareholders are registered on its share capital. These rules allow freehold, usufruct, and long-term lease on properties to ownership by non-GCC nationals or companies for up to 99 years in areas specifically permitted under regulations issued by the Ruler of Dubai (‘Designated Areas’). The latest rules of Dubai property investment give an idea about the most lucrative options for those wishing to invest in a great opportunity in real estate.

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Ownership Restrictions and Opportunities for Foreign and Domestic Entities in Dubai Property Investment

• At present, alien offshore companies (including those from the Cayman Islands or BVI) are unable to hold real estate directly in the Designated Areas. Nevertheless, lessees that had property within these areas as the policy was enacted may be grandfathered. They may also do other property transactions such as sales, mortgages, leases, or gifts. They are not, however, able to buy more. These firms are limited in new acquisitions for those interested in buying property in Dubai.
• Foreign onshore companies cannot currently own real estate directly in the Designated Areas. However, they can establish a company in the JAFZA or another free zone approved by the DLD. By doing so, they can register any real estate they intend to acquire under the name of the Dubai free zone company they have established.
• Free zone companies incorporated in other Emirates (Ajman and Ras Al Khaimah) are currently not permitted to directly own real estate his the Designated Areas. However, a non-Dubai free zone entity who has ownership in these areas before the enactment of this law will be able to maintain his/her stake. In addition, the company deals with different land transactions like sales, mortgages, and lease &gifts of land. However, it is not able to go out and buy more property. These restrictions on Dubai property investment are applicable to companies based in the free zones of other Emirates.
• A new memorandum of understanding between the Dh160 billion semi-autonomous free zone Dubai International Financial Centre (DIFC) authority and the DLD now authorizes firms based at DIFC to directly own properties located beyond it within the Designated Areas.
• At present there is a general restriction on the ownership of real estate in the Emirate Dubai by means of foreign trusts or funds whether offshore and/or onshore.
• UAE / GCC nationals or entities wholly owned by the above (e.g., a limited liability company, sole establishment registered with DED) can acquire property in certain developments directly.
• The right of UW nationals/GGC to buy real estate in the territory passed directly Ownership indicates Zona.
• Besides, non-residents and/or companies that are not from UAE/GCC countries can have a Free Zone Company in Dubai (i.e. within JAFZA or any other DLD approved free zones). All property they wish to purchase within the Designated Areas must be registered in the name of Dubai free zone company. Here are the latest rules and openings for UAE property investment.

For additional insights into: Dubai real estate law

Dubai property investment

know your rights who can invest in real estate in Dubai?

Since the UAE government relaxed foreign property ownership laws in 2002, non-residents, including expatriates and foreign investors, can now buy residential or commercial property in Dubai.

Best Areas to Buy Property in Dubai

• Downtown Dubai.
• Dubai Marina. 
• Jumeirah Village Circle.
• Palm Jumeirah. 

Conclusion

Dubai’s property market presents itself as an opportunity to UAE and GCC nationals/ entities with specific guidelines for foreign investors. The recent move permits firms based out of the Dubai International Financial Centre to own property outside the free zone. It is important to know these rules before you start UAE property investment and consider your placement around prime areas like Downtown Dubai, or even in the iconic towers of Marina property. For great advice, check out what you can of the work that come from Khairallah Law Firm.

You can benefit from the free consultation for 30-min, and get the help you need from the best lawyers in dubai, whether you’re in the region or not!