The real estate market in the United Arab Emirates is regulated at the individual emirate level, and there are no unified rules applicable across the entire country. Each emirate establishes its own regulations governing ownership rights to residential and commercial property.
In Dubai, citizens of the Gulf Cooperation Council (GCC) countries enjoy the same rights as UAE nationals when acquiring real estate. For other foreign investors, special rules apply, allowing property ownership only within designated freehold areas, the list of which is defined by local regulations.
Dubai’s Real Property Registration Law of 2006 established the right of foreign individuals and legal entities to acquire real estate in such zones with full ownership rights. Property owners are entitled to dispose of their assets at their discretion, including selling, leasing, mortgaging, or transferring them by inheritance.
Corporate ownership and offshore companies
Specific restrictions apply to corporate structures. Traditionally, offshore and onshore companies were allowed to own real estate only within the boundaries of the respective free economic zones. For a long time, the main exception to this rule applied to offshore companies registered in JAFZA.
The situation changed significantly following the signing of a Memorandum of Understanding (MoU) between the Dubai Land Department (DLD) and the Ras Al Khaimah International Corporate Centre (RAK ICC) in July 2019.
Under this MoU, RAK ICC offshore companies were granted the right to own real estate and land plots in designated freehold areas of Dubai. This decision formed part of a broader policy aimed at liberalizing the real estate market and expanding foreign investors’ access to assets in the Emirate of Dubai.
Why property ownership through RAK ICC has become attractive
Owning real estate through an RAK ICC offshore company is particularly appealing to investors focused on:
- long-term investments;
- generating rental income;
- asset structuring and property protection.
Previously, similar rights were primarily available to JAFZA offshore companies. Given the lower operating and maintenance costs associated with RAK ICC, such structures have become a competitive alternative.
It is important to note that property ownership through RAK ICC does not require holding a trading or commercial license in Dubai, which further simplifies asset ownership structures.
Conditions for acquiring property through RAK ICC companies
To register real estate in Dubai, an RAK ICC company must:
- obtain a Certificate of No Objection (NOC) from RAK ICC through a registered agent;
- submit the NOC and the required documentation package to the Dubai Land Department;
- pay the applicable registration fee.
The DLD registers ownership either in the name of a legal entity or as joint ownership between individuals and legal entities.
Under certain ownership structures, a reduced registration fee of 0.125% may apply, provided that one of the owners is the beneficial owner of the RAK ICC company. In other cases, property transfers to third parties are subject to the standard registration fee of 4% of the property value.
Dubai areas available for RAK ICC companies
RAK ICC companies may acquire property in designated freehold areas, including but not limited to:
Apartments and residential units:
- Dubai Marina;
- Downtown Dubai;
- Palm Jumeirah;
- Jumeirah Beach Residence (JBR);
- Business Bay;
- Jumeirah Lake Towers (JLT);
- City Walk;
- Dubai Silicon Oasis;
- Jumeirah Village Circle (JVC);
- Dubai Sports City;
- International City.
Villas and townhouses:
- Palm Jumeirah;
- Arabian Ranches 1 & 2;
- Emirates Hills;
- The Meadows;
- The Springs;
- Al Barari;
- Mudon;
- DAMAC Hills;
- Dubailand.
Conclusion
These developments reflect the authorities' intentions in Dubai and Ras Al Khaimah to deepen economic cooperation, remove investment barriers, and enhance the real estate market's attractiveness to foreign investors. The ability to own property in Dubai through RAK ICC structures significantly expands investment and asset planning tools available in the UAE.
