Real Estate
1. Development of the Possibilities to Acquire Property Rights
Initially, the acquisition of property rights was restricted to UAE nationals and citizens of the member states of the Gulf Cooperation Council (GCC), which comprises the United Arab Emirates (UAE), Saudi Arabia, Qatar, Bahrain, Kuwait and Oman. Only this group of people was allowed to own land and buildings erected thereon. Foreigners were only able to rent the residential and commercial units they were occupying.
A liberalisation was marked by a Dubai Government announcement in 1999 that anybody could acquire property rights by way of long-term leasehold in designated areas within the Emirate of Dubai. The first projects offered to all nationalities were Dubai Marina and Emirates Hills. They were both developed by Emaar, one of three part government-owned developers in the Emirate of Dubai today, along with Nakheel and Dubai Properties.
In May 2002, H.H. Sheikh Mohammed bin Rashid Al Maktoum - the current Ruler of Dubai, as well as Vice President and Prime Minister of the UAE - announced that the ownership of real estate was no longer restricted to local citizens and, to some extent, GCC nationals. Subsequently, foreigners were also allowed to purchase real estate on freehold basis, although only in designated areas within the Emirate of Dubai.
In the meantime, most of the seven Emirates offer foreigners the opportunity to acquire real estate on a freehold or long-term leasehold basis. As a result thereof, the real estate market is now an important factor of the local economy and caught the interest of international investors.