Foreign Investment in Dubai Property

In the Emirate of Dubai real estate purchase has been allowed for foreigners since summer 2002. However, the right to purchase is restricted to the so-called freehold areas. In other areas a leasehold right of use applies for a limited period.

freehold is the most superior form of private property ownership. A freeholder is considered to be the absolute owner of the land and buildings comprised in his title. He has the right to occupy, use and enjoy his property forever – in perpetuity – or until he transfers his title to a new owner, and his heirs is entitled to inherit his title upon his death.

Long leases are being sold to foreigners in projects all across Dubai, such as Dubai Investments Park and Dubai Silicon Oasis. In these projects it would seem, initially at least, that registration of long leases in favour of foreign investors may not be permitted. This does not make these long leases illegal in any way. They do not offend this Law or any Federal Law. It just means that they are treated in a different way for some purposes:

*Unregistered leases remain personal rights, not rights in rem or property rights
*Unregistered leases are still capable of being inherited
*Disputes arising between a landlord and a tenant of an unregistered long lease will still be adjudicated by the Rents Committee