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| | UAE Legal Certainty
The regulation of property law is initially subject to each Emirate
individually. In June 2002, the Dubai government authorised foreigners to
purchase real estate in designated projects (free hold). The transfer of
property to the purchaser is recorded in the contract of sale. There are three
national property developers: EMAAR, Nakheel and Dubai Properties / Dubai
Holding. Each of these property developers keeps a property register, in which
the owner of a property is listed or, in the event of a re-sale, the transfer to
the new owner is recorded. On MArch 14th 2006 His Highness Sheikh Mohammed Bin
Rashid Al Maktoum, vice president and prime minister of the UAE and ruler of
Dubai, has issued law No. 7 which regulates the property rights with real
estates and properties. The property law is regulating the property and real
estate rights for UAE and GCC inhabitants and also the rights for foreign real
estate buyers who are now allowed to sign up in the Dubai Land and Property
Department as the owner of their real estates. For the moment this regulation is
only based on the freehold areas. In addition - and this regulation would be new
- it should be possible for foreigners in certain cases to acquire real estates
also outside the Freehold zones. The law states that UAE citizens then may
acquire real estates for a 99 years lease and as freehold in the entire state
area. Expats are only allowed to acquire properties for 99 years lease and as
freehold only in allocated areas. An unbelievable rush to the Land department is
expected. The costs for the ownership registration will approx. take 2% of the
purchase price of the property.
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