Where Foreigners Can Buy Property in Dubai and Abu Dhabi

Dubai: freehold in designated areas

Dubai's Real Estate Registration Law (Law No. 7 of 2006) divides ownership rights in two: Emirati and GCC citizens can own property anywhere in the emirate, while foreign ownership is permitted in areas designated as freehold. The specific plots are set out in Regulation No. 3 of 2006, which determines the areas where non-nationals may own real property.

According to the official UAE government portal, foreigners — whether or not they live in the UAE — may acquire freehold ownership without restriction in those areas, as well as usufruct or leasehold rights of up to 99 years. There is no age limit on owning property in Dubai, and title deeds are issued by the Dubai Land Department (DLD).

• Full freehold ownership is available to foreign buyers in designated areas only
• Usufruct and leasehold rights can run for up to 99 years
• Title deeds are issued by the Dubai Land Department
• Before offering on a property, confirm with the DLD that it sits in a designated area

Abu Dhabi: nine investment zones

Abu Dhabi's rules come from Law No. 19 of 2005 on the regulation of the real estate sector. An amendment passed in April 2019 gave non-UAE nationals the right to own and acquire all original and in-kind rights in property located within designated investment areas.

The UAE government portal lists nine areas where foreigners are allowed to own: Yas Island, Saadiyat, Reem, Mariya, Lulu, Al Raha Beach, Sayh Al Sedairah, Al Reef and Masdar City. Expatriate ownership in Abu Dhabi takes the form of floors and apartments rather than land itself.

• Yas Island, Saadiyat and Reem are among the nine investment zones open to foreign buyers
• The April 2019 amendment strengthened foreign ownership rights within investment areas
• Ownership covers residential units — apartments, villas and floors — not the underlying land

Four ways to hold property in Abu Dhabi

Within the investment zones, Abu Dhabi recognises four systems of expatriate tenure, and the differences matter. Ownership deeds give you the fullest rights over a unit for 99 years. Usufruct also runs for 99 years but only entitles you to use the property and its facilities, not to alter it. Musataha runs for 50 years, renewable by agreement, and does allow construction and alteration. Long-term leases start at a minimum of 25 years.

• Ownership deed: 99 years, full right to dispose of the unit
• Usufruct: 99 years, use of the property without altering it
• Musataha: 50 years renewable, with the right to build or alter
• Long-term lease: an initial period of at least 25 years

What about the other emirates?

Each emirate sets its own rules. In Sharjah, foreign nationals cannot own property outright, but under Executive Council Resolution No. 26 of 2014 they can register a usufruct right of up to 100 years in areas specified by the Sharjah government, subject to approval. If you are looking beyond Dubai and Abu Dhabi, check the relevant emirate's land department before you start viewing.

Checks to make before you buy

Registration is not optional: the Dubai Land Department states that real estate transactions not recorded in its registers are considered invalid. Wherever you buy, verify that the property sits in an area open to foreign ownership, confirm exactly which type of title and term you are being offered, and deal only with registered brokers and developers.

If you are weighing up locations, Habio's UAE listings and area guides are a useful place to compare freehold communities before you speak to a broker.

• Confirm the property is in a designated freehold or investment area
• Check the title type (freehold, usufruct, musataha, lease) and its term
• Register the transaction with the land department — unregistered deals are invalid in Dubai
• Use brokers registered with the relevant regulator