The rapidly growing city-state of Dubai has enacted a law allowing foreigners to own property directly, a shift from the previous practice of purchasing through contracts with developers, according to reports on Thursday.
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| Dubai allows expats to own property |
Previously, only citizens of the UAE and other Gulf Cooperation Council (GCC) countries could own property.
The law, as published in several newspapers, states, "Foreigners can become freehold property owners in areas designated by the ruler. They can also benefit from their property or rent it out for up to 99 years."
Foreigners constitute over 80% of Dubai's approximately 1.2 million population.
Until now, property ownership was restricted to UAE residents and nationals of GCC countries, which include Bahrain, Kuwait, Oman, Qatar, and Saudi Arabia.
Foreign buyers in Dubai's vibrant real estate market, such as British football star David Beckham, previously received deeds from major developers, which are largely controlled by Dubai's government and its ruler, Sheikh Mohammed bin Rashid al-Maktoum, and his family.
EMAAR, a major player in the real estate market, is involved in several large-scale projects. Mohammed Ali al-Abbar, chairman of EMAAR Properties, the world's largest real estate firm by market capitalization, remarked, "Passing a law that authorizes foreigners to buy property is a significant gain for the market and investors. The massive projects underway would have faced serious issues if the freehold ownership matter had not been addressed."
EMAAR, with the Dubai government as its largest shareholder, has constructed 12,800 homes in the city. It is involved in several mega projects, including the Burj al-Arab Tower, which aims to be the world's tallest building at approximately 800 meters (2,500 feet) high.
Published on Dubaitowa.