Real estate investment in UAE is regulated by a comprehensive framework of laws and regulations designed to safeguard the interests of investors.

There are multiple key real estate laws, highlighting the essential regulations that every investor should be aware of to make informed decisions and ensure the protection of their investments.

The regulations cover various aspects, including property ownership, registration, dispute resolution, and more.

But most importantly, every real estate investor should come across key highlights when thinking about property investment in the UAE, like who can invest, what are the regulations for each emirate, and what are the benefits of investing in UAE?

If you are more interested in specifices: read more about landlord rights in real estate law

Different Eimartes have different property investment laws and regulations

• Property investment in uae: real estate ownership in  Dubai

Dubai allows expatriates to own property in designated freehold areas as per the decree issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, outlined in Article 3 of Law No. (3) of 2006.

This law permits non-citizens to purchase and register properties with the Dubai Land Department without any age restrictions. This provision enables all individuals, regardless of nationality, to invest in, buy, and sell real estate, including freehold land in Dubai.

This decree has significantly transformed the real estate landscape, positioning Dubai as a premier global property destination.

The ability for expatriates to own property has not only attracted international investors but also fostered a vibrant and diverse real estate market. The freedom and ease of property ownership in Dubai have played a crucial role in boosting the emirate’s economic growth and development, making it an attractive hub for both residential and commercial investments.

According to the law, non-UAE nationals can now purchase property in Dubai under specific conditions, which include:

• Purchasing properties in designated freehold areas.
• Acquiring absolute ownership of the property without time restrictions.
• Obtaining the right to use or lease the property for a period not exceeding 99 years in areas specified by the Dubai Land Department.

Read more about: Real estate investment in Dubai

• Property investment in uae: real estate ownership in Abu Dhabi

Foreigners can purchase property in Abu Dhabi in the form of apartments only, without the land, in certain areas specified under Law No. 19 of 2005 on Real Estate Ownership in Abu Dhabi. There are nine such areas, with the most popular among foreigners being Saadiyat Island, Al Reem Island, and Al Raha Beach.

The Abu Dhabi government offers three main systems that allow foreigners to own property in the emirate, which we will list in another article. 

However, the new law has replaced Articles 3 and 4. The new Article 3 states that the right to own real estate is limited to the following categories:

1. Citizens and equivalent natural and legal persons.
2. Public joint-stock companies with no more than 49% non-citizen ownership.
3. Anyone granted ownership by a decision from the Crown Prince or the Chairman of the Executive Council.

The law also states that foreigners, whether natural or legal persons, have the right to own and acquire all original and subsidiary real property rights within investment areas and may conduct any transaction concerning these properties.

The new Article 4 stipulates that those with usufruct rights for more than 10 years may dispose of these rights, including mortgaging them, without the owner’s permission. The property owner may not mortgage it without the consent of the usufruct or musataha right holder, although both parties may agree otherwise.

• Property investment in uae: real estate ownership in Sharjah 

Based on Law No. 2 of 2022 issued on October 31, 2022, regarding usufruct of real estate in the Emirate of Sharjah, all nationalities can own property with absolute freehold ownership and use it freely in Sharjah, subject to certain conditions:

Ownership with the Approval of the Ruler of Sharjah: Foreign nationals can acquire property ownership with explicit approval from the Ruler of Sharjah.

Inheritance: Property can be transferred through inheritance as per a legal declaration.

Transfer to First-Degree Relatives: The property owner can transfer ownership to first-degree relatives.

Ownership in Designated Areas and Development Projects: Ownership is permitted in specific areas and real estate development projects according to regulations set by the council.

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Advantages for Investors in the United Arab Emirates

The United Arab Emirates (UAE) offers numerous incentives to investors and supports entrepreneurship, encouraging the establishment of companies to diversify national income sources, when it comes into property investment in uae.

Government agencies work to remove barriers to investment flows, continually making the UAE a more competitive environment for attracting foreign investments. The UAE aims to position investments as a key driver of the national economy.

Full Ownership of Companies

Investors from all nationalities are allowed to fully establish and own companies and get into property investment in uae across all regions. This became possible after the issuance of the Commercial Companies Law in 2020, which removed the requirement for a local agent for foreign companies wishing to open branches and conduct their activities in the country.

Golden Residency for Investors

The UAE implements a long-term residency visa system, granting visas ranging from five to ten years for investors, entrepreneurs, and talented individuals.

This system allows residents and their families who wish to live, work, and study in the UAE to settle down, establish their businesses, and enjoy long-term residency.

Read more about: Who can get UAE’s Golden Visa?

No Income Tax and Full Profit Repatriation

The UAE does not impose income tax on individuals, investors, or companies, except for oil companies and branches of foreign banks.

It also allows individuals and investors the freedom to repatriate their profits in full. These incentives are part of the advantages that have historically benefited investors in the UAE, adhering to a free-market economy model since the country’s establishment.

Advice for investors interested in property investment in uae: Why consulting a property lawyers is a must?

Property investment in uae offers significant potential, but navigating its complex legal landscape can be challenging.

Consulting with an expert real estate lawyer ensures you understand all regulations, ownership rights, and compliance requirements. This professional guidance protects your investment, helping you make informed decisions and maximize returns in one of the world’s most dynamic real estate markets.

Contact Khairallah legal experts and get your 30 min free consultation with the best property lawyers in dubai.