More and more UAE residents are choosing to invest in property in the country, so it is essential for buyers to know the differences in laws for foreigners and Emiratis.
For expatriates, buying property in the UAE is a transparent and straightforward process, said Robert Villalobos, head of brokerage at Engel & Volkers Middle East, but it’s important to understand the key rules and costs involved before making any long-term decisions.
The National spoke to experts in Dubai and Abu Dhabi to understand how regulations can impact investments.
Can foreign buyers purchase property anywhere they like in the UAE?
In Dubai, property ownership is split into two structures: leasehold and freehold. Expatriates are only able to buy in designated freehold zones, which includes prominent neighbourhoods such as Palm Jumeirah, JBR, Downtown Dubai, Dubai Creek Harbour, Arabian Ranches, Dubai Hills Estate and Dubai Marina.
"There are more than 70 designated freehold areas across the emirate, allowing foreigners to buy property in many of Dubai’s most sought-after communities," said Mr Villalobos.
"The variety means expats can choose between waterfront apartments, golf course neighbourhoods, family-friendly suburbs, and urban lifestyle hubs, all with full ownership rights."
What are the differences between leasehold and freehold?
In simple terms, freehold means you have full ownership of both the property and the land it sits on, Mr Villalobos explains. "There’s no expiry date on that ownership, which gives you greater control; you can live in it, rent it out, sell it, or pass it on without restriction.
"Leasehold, on the other hand, gives you the right to occupy and use the property for a fixed term, typically anywhere from 30 to 99 years. You don’t own the land, it belongs to the freeholder, which is usually the government or a master developer."
When that fixed term ends, ownership reverts back to the freeholder, unless the lease is renewed.
How do the rules differ across the Emirates?
Ben Crompton, managing partner of Abu Dhabi-based property brokerage Crompton Partners, said each emirates' laws is unique but broadly similar in that they're mostly governed by contract law.
"Contract law is fundamental because the binding document for the transfer process of real estate is the memorandum of understanding between the buyer and seller," he explained.
"In Dubai, they have more specific contracts – the MOU is called a Form F."
What is the process in Abu Dhabi?
"The first thing to note is that there are two different sets of legal jurisdictions regarding property in Abu Dhabi," Mr Crompton explained. One applies to Reem Island and Maryah Island and is under the Abu Dhabi Global Market (ADGM) law, while the second applies to the rest of Abu Dhabi, which is under the Abu Dhabi Real Estate Centre (ADREC) law.
"These two locations have different laws, so you need to apply the correct one when depending on which area you are buying/selling property in."
Secondly, regarding sales and purchases of property in Abu Dhabi, "the law is relatively silent", he added. "A lot of the sales law is governed by process, and also contract law."
In Abu Dhabi, although the ADGM has a standard form of contract, ADREC is also bringing one out soon. "However a lot of the terms of the transfer are still dictated by whoever is doing the conveyancing, which, for the most part are still real estate brokers," said Mr Crompton.
Abu Dhabi also has three types of ownership. There is freehold, which again is full ownership. Then there is usufruct, which is a 99-year lease, and Musataha, which is a 49-year lease renewable for 49 years.
"Usufruct is a standard lease of a property and Musataha is a lease of land with a right to build and lease the property that you build on that land," added Mr Crompton.
Can foreigners buy anywhere in Abu Dhabi?
There are laws surrounding who can buy what types of property, in what location and what types of legal ownership people can obtain, said Mr Crompton.
Expats can own property in the investment zones, created specifically by government regulation, including places like Sadiyaat Island, Reem Island, Maryah Island, Yas Island, Jubail, Raha Beach, Al Reef and a few others.
"Other areas are reserved for UAE nationals only," he added.
What additional fees do foreign buyers need to be aware of?
Mr Villalobos said a common misconception among foreign buyers in the UAE is that the price they agree with the seller is the only cost they need to consider.
"While there’s no income or property tax in Dubai, buyers should budget for costs such as the Dubai Land Department transfer fee of 4 per cent of the purchase price, a broker’s commission of 2 per cent, plus VAT, and annual service charges for the upkeep of communal areas, facilities, and security."
Do you need to be a UAE resident to buy property or be here in person?
"The simple answer to both is no," said Mr Villalobos. "You can buy a property as a non-resident, and there are straightforward procedures in place to make a remote purchase possible."
In Dubai, this includes digitally completing the Unified Form F, which is the contract between buyer and seller, and using a power of attorney for the transfer of ownership.
Is buying a property in the UAE worth it?
Despite the additional costs for foreigners, buying property in the UAE can be a "compelling option, he said,
"Mortgage interest rates for expats are highly competitive, and in many cases, monthly repayments are lower than what you would pay in rent for a comparable home."
What advice would you give to anyone new to the UAE considering buying property right now?
Mr Villalobos said all potential buyers should research the location and the buying process. "Each project and community in the UAE offers a different lifestyle, set of amenities and long-term benefits. Once you’ve narrowed down your preferences, engage with a reputable and established brokerage that can guide you through everything from securing a mortgage and arranging initial viewings to negotiating offers, handling contracts and completing the transfer of ownership."
Mr Crompton said, from a legal point of view, since real estate agents still co-ordinate property transfer in Abu Dhabi – and lawyers are rarely involved – it's important to get a broker with plenty of experience and who has a strong MOU.
"Make sure you read the MOU because it will govern the process of transfer between the buyer and seller."
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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MATCH INFO
South Africa 66 (Tries: De Allende, Nkosi, Reinach (3), Gelant, Steyn, Brits, Willemse; Cons: Jantjies 8)
Canada 7 (Tries: Heaton; Cons: Nelson)
Global state-owned investor ranking by size
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Wonka
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Pakistan T20 series squad
Sarfraz Ahmed (captain), Fakhar Zaman, Ahmed Shahzad, Babar Azam, Shoaib Malik, Mohammed Hafeez, Imad Wasim, Shadab Khan, Mohammed Nawaz, Faheem Ashraf, Hasan Ali, Amir Yamin, Mohammed Amir (subject to fitness clearance), Rumman Raees, Usman Shinwari, Umar Amin
UAE currency: the story behind the money in your pockets
It's Monty Python's Crashing Rocket Circus
To the theme tune of the famous zany British comedy TV show, SpaceX has shown exactly what can go wrong when you try to land a rocket.
The two minute video posted on YouTube is a compilation of crashes and explosion as the company, created by billionaire Elon Musk, refined the technique of reusable space flight.
SpaceX is able to land its rockets on land once they have completed the first stage of their mission, and is able to resuse them multiple times - a first for space flight.
But as the video, How Not to Land an Orbital Rocket Booster, demonstrates, it was a case if you fail, try and try again.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Most match wins on clay
Guillermo Vilas - 659
Manuel Orantes - 501
Thomas Muster - 422
Rafael Nadal - 399 *
Jose Higueras - 378
Eddie Dibbs - 370
Ilie Nastase - 338
Carlos Moya - 337
Ivan Lendl - 329
Andres Gomez - 322
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
Like a Fading Shadow
Antonio Muñoz Molina
Translated from the Spanish by Camilo A. Ramirez
Tuskar Rock Press (pp. 310)
Keane on …
Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”
Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”
Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Company%20profile
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Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Killing of Qassem Suleimani
Ronaldo's record at Man Utd
Seasons 2003/04 - 2008/09
Appearances 230
Goals 115
SERIES INFO
Cricket World Cup League Two
Nepal, Oman, United States tri-series
Tribhuvan University, Kathmandu
Fixtures
Wednesday February 5, Oman v Nepal
Thursday, February 6, Oman v United States
Saturday, February 8, United States v Nepal
Sunday, February 9, Oman v Nepal
Tuesday, February 11, Oman v United States
Wednesday, February 12, United States v Nepal
Table
The top three sides advance to the 2022 World Cup Qualifier.
The bottom four sides are relegated to the 2022 World Cup playoff
1 United States 8 6 2 0 0 12 0.412
2 Scotland 8 4 3 0 1 9 0.139
3 Namibia 7 4 3 0 0 8 0.008
4 Oman 6 4 2 0 0 8 -0.139
5 UAE 7 3 3 0 1 7 -0.004
6 Nepal 0 0 0 0 0 0 0
7 PNG 8 0 8 0 0 0 -0.458
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
The specs: 2018 Dodge Durango SRT
Price, base / as tested: Dh259,000
Engine: 6.4-litre V8
Power: 475hp @ 6,000rpm
Torque: 640Nm @ 4,300rpm
Transmission: Eight-speed automatic
Fuel consumption, combined: 7.7L / 100km
The specs: Volvo XC40
Price: base / as tested: Dh185,000
Engine: 2.0-litre, turbocharged in-line four-cylinder
Gearbox: Eight-speed automatic
Power: 250hp @ 5,500rpm
Torque: 350Nm @ 1,500rpm
Fuel economy, combined: 10.4L / 100km
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Company Profile
Founder: Omar Onsi
Launched: 2018
Employees: 35
Financing stage: Seed round ($12 million)
Investors: B&Y, Phoenician Funds, M1 Group, Shorooq Partners
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
More from Rashmee Roshan Lall
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Sweet%20Tooth
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What is blockchain?
Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.
The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.
Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.
However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.
Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.
UK's plans to cut net migration
Under the UK government’s proposals, migrants will have to spend 10 years in the UK before being able to apply for citizenship.
Skilled worker visas will require a university degree, and there will be tighter restrictions on recruitment for jobs with skills shortages.
But what are described as "high-contributing" individuals such as doctors and nurses could be fast-tracked through the system.
Language requirements will be increased for all immigration routes to ensure a higher level of English.
Rules will also be laid out for adult dependants, meaning they will have to demonstrate a basic understanding of the language.
The plans also call for stricter tests for colleges and universities offering places to foreign students and a reduction in the time graduates can remain in the UK after their studies from two years to 18 months.
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
