Legal Advice

The young property market in Dubai has only allowed foreigners to purchase property in the declared freehold areas since June 2002. Beforehand, the purchase of property was reserved for the citizens of the U.A.E. and under certain circumstances for citizens of the GCC states (Gulf Cooperation Council). For all others, only a leasehold of 99 years was possible. Outside the freehold areas, this is still the case.

At present, the property in the freehold areas is assured to the buyers by contract, and is entered in the property register of the project developers.

A state Land Register does not yet exist, but is foreseen by the government in the near future. After the introduction of the Land Register, the owners will be registered there. This will also be guaranteed by contract. In order to issue legislation on a national basis, which forbids the purchase of property by foreigners, the agreement of the Emirate of Dubai is required. As in the meantime four other Emirates have opened their property market for foreigners, the introduction of a Land Register for foreigners is only a matter of time.

The purchase of property in the U.A.E. is possible by means of a private, written contract. The entry in the Land Register constitutes declaratory legal proof. The abstraction principle, as it is known in Germany, is not valid.