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In this section you will find all the information that will help you understand the intricacies of buying an apartment in the UAE.
Dubai’s laws governing the purchase of real estate by foreigners
In recent years, the UAE government has reformed property laws in Dubai. Thanks to this, more and more people are finding purchasing residential and investment property in the country increasingly attractive.
At the beginning of 2001, the Dubai real estate market underwent dramatic changes. The Dubai government has allowed foreign investors and buyers to rent apartments and villas in Dubai for a period of 99 years. In May 2002, the current Ruler of Dubai, His Highness Sheikh Mohammad bin Rashid Al Maktoum, decreed that the emirate would allow foreign citizens to invest in Dubai real estate on a full ownership basis.
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The main sources of law


Real estate investments in Dubai are regulated by a set of real estate laws and rules aimed at protecting the interests of real estate investors. The UAE Civil Code (Law No. 5 of 1985) regulates civil transactions and contains certain provisions relating to real estate. The UAE Constitution provides for the protection of private property, and laws relating to real estate ownership are adopted separately by each emirate in the UAE. The Emirates also have certain “free zones” that are authorized to issue their own laws and regulations.


What is the Dubai Land Department (DLD)


The Dubai Land Department (DLD) is engaged in developing the necessary legislation for the development of the real estate sector in Dubai, organizing and promoting real estate investments. It was founded in May 1960 with the aim of creating the most visible real estate sector at the regional and international levels. The Land Department is looking for regional and global real estate innovations through its own active sectors, which include:

  1. The center for registration of real estate and services. In the specially created Al Taboo system, all land rights are documented and preserved. It consists of 4 subsystems: the registry, the primary registry, trust accounts and confirmation of the rights of property owners.
  2. The Center for Real Estate Promotion and Investment Management. DLD strives to support national and international companies investing in real estate and to develop an environment for such investments.
  3. Emirates Real Estate Solutions (ERES) is working to find solutions for the e-real estate market based on real estate experience when registering with DLD and RERA.
  4. Rent Dispute Center (RDC). It is an online rental litigation system that provides a fully automated litigation management cycle, starting with online registration, auditing, payment and ending with online archiving, allowing all interested parties to access all related documents at any time.

In 2013, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued Law No. 7 (2013) defining the objectives of DLD as the government body responsible for registering, organizing and promoting investments in Dubai real estate. The law aims to create an attractive investment environment through the introduction of international standards to accelerate the development and growth of this vital sector, given its important position in the local economy.


Real Estate Regulatory Agency (RERA)


The Real Estate Regulatory Agency (RERA) is responsible for creating the legal framework and mechanisms governing the activities of real estate development and brokerage companies, as well as associations of property owners. In addition, it issues licenses to developers and real estate agents, as well as rules and regulations for registering the purchase and sale of real estate in Dubai. RERA monitors all development projects at the financial and technical level in order to protect the broader interests of both the market and investors. RERA also plays an active role in monitoring compliance by all licensed real estate professionals with applicable laws and regulations and imposing penalties for their violation.

Categories of property rights


There are five main types of property rights that can be owned in the UAE: absolute ownership, usufruct, musataha, tenancy and grant land.


Freehold


In Dubai, citizens of the Gulf States (GCC), wholly owned companies registered in the UAE, as well as public joint stock companies registered in the UAE, can have absolute ownership of real estate throughout the Emirate. Citizens of other countries are allowed to own real estate only in areas designated by the Ruler of Dubai as places where foreign ownership of real estate is permitted - Freehold Zones.


Usufruct and Musataha


Distinguishing a lease from a Usufruct or Musataha may be difficult and the substance of the document will determine its nature rather than its form. Relevant authorities are likely to treat longer-term arrangements with development rights or subletting as real rights (to which foreign ownership restrictions may apply) rather than as leases.

  • Usufruct is a right in rem in favor of a grantee to use and exploit the property of another, provided that the property remains in its original condition.
  • Musataha is a type of usufruct that gives the grantee the right to build on someone else's land.

In Dubai, both of these categories can be owned by GCC nationals and companies registered in the UAE, wholly owned by them throughout the Emirate. In all cases, usufruct are limited to a maximum term of 99 years, and musataha to a maximum of 50 years.


Leased interests


Generally, tenancy rights in the UAE are treated as personal rights between two parties and not as real rights. The exception is lease agreements for 10 years or more in Dubai, where each of the agreements is considered a real right and can be registered as such.


Granted land


Land may also be granted by the ruler of the emirate to citizens or companies owned by local residents of the emirates. The grant of such land may be withdrawn by the Ruler at any time and shall be subject to development obligations and restrictions on its use and disposal.

Laws applicable to transfer of ownership


The following federal laws apply:

  • UAE Civil Code (as amended);
  • Federal Law No. 18 of 1993 on commercial transactions.

Laws that relate to the transfer of property rights:

  • Dubai Law No. 7 of 2013: Land Department;
  • Dubai Executive Council Resolution No. 30 of 2013: Approval of Land Department fees;
  • Dubai Decree No. 4 of 2010: Regulating the Grant of Title to Dedicated Industrial and Commercial Land in the Emirate of Dubai;
  • Dubai Law No. 13 of 2008: Regulation of the Temporary Register of Property in the Emirate of Dubai, as amended by Dubai Law No. 9 of 2009;
  • Dubai Law No. 27 of 2007: Concerning the Ownership of Joint Ownership Properties in the Emirate of Dubai;
  • Dubai Law No. 7 of 2006: Registration of Real Estate in the Emirate of Dubai.

Carrying out a legal and proper transfer of ownership


According to the law, all real estate transactions must be registered in the “Temporary Register” maintained by the Dubai Land Department. Failure to register shall invalidate the relevant sales, leases or mortgages (Article 3(1) of Law No. 13 of 2008, Article 4 of Law No. 33 of 2008 and Article 7 of Law No. 14 of 2008). Therefore, a contract of sale, mortgage or lease is only legally valid if it is registered.

Real estate registration in each emirate has its own rules governing the transfer of ownership. In Dubai, to register the transfer of ownership, the buyer and seller must meet at the DLD office in person or online. The Dubai REST mobile app allows for all types of real estate trading and transactions, as well as providing services such as Ejari registration, title confirmation and even mortgage processing.

It is worth noting that some free zones in Dubai maintain their own real estate registry, but this does not replace the requirement to register a land transaction with the DLD.

To complete the property transfer process, you will need a No Objection Certificate (NOC) from the developer at DLD. Once the NOC is ready, the buyer and seller can transfer the property and register it in the buyer's name.

Off-plan sales


Laws and regulations in Dubai require contracts for the sale of (off-plan) properties to be registered in a temporary register. In Dubai this is called registration (Oqood). Temporary registration is an administrative measure only because it does not create any legal ownership rights (since the unit does not currently exist).

Next, a public search of the registry is conducted. While all transfers must be recorded in the real estate registry by law, the registry is not publicly searchable. A certificate of ownership of real estate can only be obtained upon application from the owner or from a person who has a power of attorney from such owner.

The representations and warranties contained in the purchase agreement are subject to agreement between the parties and may vary from contract to contract.

Dubai law is largely silent on representations and warranties implied in the sale of property, except for the sale of under-construction properties. According to Real Estate Regulation Law No. 6 of 2019, a developer selling an off-plan property must correct any structural defects on the premises within 10 years from the date of issuance of the completion certificate by the municipality and is liable for hidden defects for a certain period (1 year from the date of transfer). This “ten-year liability” cannot be excluded.

The law also specifies the procedure for the use of public spaces by the developer. In particular, the developer does not have the right to separately sell a parking space to the owner. Law No. 6 of 2019 applies to all real estate, including those located in free economic and special development zones.

It is also worth noting that when considering purchasing property in Dubai, an investor should pay particular attention to the planning, zoning, building, environmental, health and safety laws that may apply to the property and obtain assurance that all necessary permits were obtained before the building was built.

Non-UAE persons should check whether the property is located in an area in which the buyer is legally permitted to own the interests they plan to purchase.

Dubai Administrative Regulation No. 125 of 2001 establishing Building Codes and Standards provides public legal control over the technical aspects of detailed design, as well as restrictions for aesthetic and heritage areas.


The relevant mandatory provisions of the Civil Code in the context of construction contracts include:


  • Article 248, according to which the UAE courts may, upon application of a party, modify unfair contractual provisions or relieve a party from compliance with such provisions;
  • Article 383, which provides that liability for fraud, willful or gross error cannot be excluded;
  • Article 390, which allows UAE courts to adjust the award of damages due to a party if the actual damages suffered differ from the amount of damages pre-agreed in the contract;
  • Article 390 of the UAE Civil Code provides that the parties may agree in advance on the amount of damages, including for delay in handing over the property.

Real estate financing


Security over real property and vested interests (such as usufruct or musataha) can be obtained through a mortgage registered with the relevant land department. Some Emirates (and free zones) have specific laws regarding mortgages, but in the absence of legislation, mortgages are generally governed by the UAE Civil Code. Although the practices of the respective registrars may vary, in general, mortgages on real estate can only be granted in favor of a bank licensed by the Central Bank of the UAE. The mortgage must also be translated into Arabic and notarized before it is registered, which can add time and cost to the real estate transaction.


Formalities in case of bankruptcy of the borrower


In Dubai, the lender has the right to repay the mortgaged property when the debt becomes due, provided that the mortgage has been registered with DLD. Failure to register a mortgage renders it invalid under the Mortgage Law No. 14 of 2008 in the Emirate of Dubai (“Mortgage Law”).

The Mortgage Law establishes the procedure for the enforcement of mortgage loans. If the borrower is late in payment, the lender must notify the notary 30 days before the start of enforcement proceedings. If payment is not made within such 30-day period, the executor shall, at the request of the creditor, place a lien on the mortgaged property, allowing it to be sold at public auction in accordance with DLD auction rules.

The Execution Judge may decide to defer the sale at public auction for up to 60 days (this deferment can only be made once) if he finds that the borrower will be able to repay the debt within that time.


Consequences of the borrower's bankruptcy


The relevant provisions regarding the lender's security interests in the event of the borrower's insolvency are contained in Federal Decree Law No. 9 of 2016. Bankruptcy law provides that a declaration of insolvency will not result in the termination of contracts that are binding on both parties, unless the services are of a “personal” nature.

It is possible to challenge certain types of “preferential” contracts that are entered into during the required period (that is, the date from which the court considers the cessation of payments to have occurred, and such a date should not be more than 2 years before the bankruptcy is declared). But the problem is generally considered to be much more difficult where the transaction is a genuine commercial transaction between the parties on terms which provide a defense to an application to set aside the transaction. However, court consent will be required before any action can be taken to ensure such security.

Dubai's Basic Property Laws


Buyers and investors around the world are showing great interest in buying real estate in Dubai and in order to be sure of the security of the transaction, it is necessary to know and understand the basic laws of Dubai on property.


Law No. 85 of 2006 on the Register of Real Estate brokers in the Emirate of Dubai


Law No. 85 of 2006 applies to all companies and real estate agents that are engaged in the purchase and sale of real estate registered in DLD. It implies that all interested agents are required to apply for registration in the Register of Brokers in DLD, as well as comply with the “Code of Ethics”. The real estate agent must be appointed by his client in writing, and the contract itself must be registered with the Land Department.

Violation of the Law on Brokers or the Code of Ethics may subsequently lead to suspension from work for a period of half a year, blacklisting by DLD or cancellation of the realtor's license.


Law No. 7 of 2006 on registration of real estate in the Emirate of Dubai


This Law regulates the registration of real estate and property rights in the Emirate of Dubai, regardless of whether they are businesses or individuals, and reduces restrictions for foreigners related to owning real estate in Dubai. According to UAE real estate laws, previously a foreigner was not allowed to own land and construction real estate in Dubai.

According to article 4, citizens of the UAE and the Persian Gulf countries, as well as companies wholly owned by them, can buy real estate anywhere within Dubai. Persons who are not citizens of the United Arab Emirates and the Persian Gulf countries may have the right to unconditional ownership, lease for a period of 10 to 99 years only in certain areas of Dubai, which are listed in Decree 3/2006 (as amended by Decree 1/2010), or in the free zones of the UAE. Article 3 of Resolution No. 3 of 2006 “On the definition of Territories belonging to non-citizens” for real estate in the Emirate of Dubai (pages 129-132) specifies land plots classified as unconditional ownership.


Law No. 8 of 2007 “On Guarantee Accounts for the construction of real estate in Dubai”


The main purpose of Law No. 8 of 2007 is to provide legislative protection for buyers in off—plan transactions and is aimed at introducing a registration regime. The provisions of this law apply to a developer who sells construction-in-progress objects in development projects and receives payments from buyers or financiers.

All off-plan real estate transactions, namely the sale by the developer or the owner of the property before completion, are commonplace in Dubai. In such transactions, the date of completion of construction and transfer is provided, and the buyer is obliged to make an installment payment to the developer. If the developer does not complete the construction of the facility on time or is unable to transfer ownership to the buyer for any reason, the buyer will be considered an unsecured creditor of the developer and risks losing the money already invested. Legislative confirmation of this can be found in articles 9 and 10 of Law No. 7 of 2006 on the registration of real estate in Dubai. Therefore, the Law on Escrow, introduced in 2007, has also become an effective protection for investors. According to this law, all the money collected by the developer from the homeowners and financiers of the project is credited to this account, after which the funds can only be used for the construction of the facility.


Law No. 9 of 2009 on Amendments to Law No. 13 of 2008 on the Regulation of the Temporary Real Estate Register in the Emirate of Dubai


First of all, the Law on the Real Estate Registry was adopted to monitor and assist existing practices regarding property registration for UAE citizens, as well as further clarify and confirm the actual status of GCC citizens in relation to their rights to own real estate in Dubai. With its help, you can select development projects that may be owned by foreign buyers. Well, actually, to provide a regime in which individuals can be provided with confirmation of their rights to purchase and own real estate in Dubai, as well as a guarantee of ownership of real estate registered on them.

Law No. 9 of 2009 came into force to amend certain provisions of Law No. 13 of 2008, which regulates the temporary real estate registry in the Emirate of Dubai. Dubai's legislation in the field of real estate registration provides for the following:

  • All transactions with projects under construction and with constructed real estate must be registered in the “Real Estate Register”, which is maintained by DLD.
  • Article No. 7 of Law No. 15 of 2008 stipulates that all lease agreements must be registered with the Real Estate Registration Department.
  • All mortgages of real estate must be registered with the DLD (Article 7 of Law No. 14 of 2008).

According to the provisions of Article 3(1) of Law No. 13 of 2008, Article 4 of Law No. 33 of 2008 and Article 7 of Law No. 14 of 2008, the absence of registration in accordance with the above invalidates the relevant purchase, lease or pledge transactions.


Law No. 14 of 2008 on mortgage lending


Financing your investment in Dubai real estate is one of the key elements. Most newcomers to the industry take out a mortgage to pay for their purchase, however, some rules may be confusing at first.

The main provisions of the law are as follows:

  • Article 7 on mortgage registration: A mortgage is invalid if it is not registered in the DLD, as well as any other agreement. In addition, the owner of the property bears the costs of the contract, unless otherwise agreed. The cost of registering a mortgage is a commission of 0.25% of the loan amount plus 4,100 dirhams.
  • The mortgage application procedure for RERA: Describes all the details that must be accompanied with the mortgage application so that it can be registered.
  • Articles 10-12 on the legal effect of a mortgage: they set out the rights and limitations of both the mortgagor and the mortgagee during the mortgage period.

Decree No. 27 of 2007 on rental housing in the Emirate of Dubai


Before signing a lease agreement in Dubai, it is important to familiarize yourself with the rules of the RERA lease agreement. The Rental Laws of the Real Estate Regulatory Agency (RERA) govern the rights and obligations as well as the relationship between tenants and landlords in Dubai.

When it comes to the RERA Real Estate Rental law in Dubai, you should keep in mind the 4 basic laws:

  • Law No. 26 of 2007 regulates the relationship between landlords and tenants in Dubai.
  • Law No. 33 of 2008 — amended some articles of Law No. 26 of 2007, and also regulates the relationship between landlord and tenant in Dubai.
  • Decree No. 26 of 2013 — In accordance with this law, the Rent Dispute Resolution Center (RDSC) was established, which deals with all types of rental disputes in Dubai.
  • Decree No. 43 of 2013 regulates rent increases in Dubai.

Terms of the Dubai Rental Law:


  1. In accordance with article 4 of Law No. 33 of 2008, a tenant or landlord is required to register a lease agreement with the Real Estate Regulatory Agency (RERA) through Ejari. This ensures that the property will not be rented out twice at the same time.
  2. Article 6 of the Law on Rent No. 26 of 2007 states that if the lease expires and the tenant continues to live in the property without objection from the landlord, the lease period will be automatically extended for the same period or for one year (whichever is less), on the same terms.
  3. According to article 28 of the Dubai Real Estate Rental Act, the transfer of ownership of real estate to a new owner will not affect the tenant's right to occupy real estate.

It is also worth noting that the amendments to the Rental Law have further stimulated foreign buyers to invest in real estate to make a profit on the fact of renting. The new decree provides for a restriction on rent increases, depending on the price index in a particular area, which was set by RERA.


The Law on Hereditary Property


This law is quite complicated compared to other Dubai property laws. Inheritance issues in the United Arab Emirates (UAE) are regulated by Federal Law No. 5 of 1985 on Civil Transactions in the UAE (Civil Code) and Federal Law No. 28 of 2005 on Personal Affairs Law. As a rule, inheritance issues for UAE Muslim citizens are resolved in accordance with Sharia (the system of Islamic law based on the Koran), whereas for foreigners the law of the country of origin of the deceased is applied.

If the deceased asset owner is a member of another country, then the UAE inheritance law also takes into account the law of another country. If the homeowner has dual citizenship other than the UAE, then it becomes more difficult to make a decision about the hereditary owners. To transfer real estate to legitimate beneficiaries, a valid will is required that meets all legal standards of the UAE and Dubai.

In the absence of a legitimate will, the decision on the division of property between the recipients is made by the court of instances. The UAE courts are looking for legal proof of ownership, so it is important to register ownership of the property with the local land department. There is no equivalent to the concept of “inheritance rights” in other jurisdictions (for example, when property passes from a deceased co-owner to a remaining co-owner). In the UAE, co-owners own equal shares in the property, unless otherwise indicated.

Conclusion


  1. When purchasing real estate in Dubai, foreign investors can be confident that all stages of the acquisition process are legally approved stages.
  2. Dubai property laws are very important for local and foreign buyers and investors.
  3. Regardless of who intends to sell, buy or rent any property, that person must comply with all of the above property laws in Dubai. This will help you make full use of your assets in Dubai.
Information about the Dubai real estate market
Having housing on the shores of the Persian Gulf is quite profitable: purchasing real estate in the UAE allows a foreign citizen to obtain a residence permit, and such properties have a high return on investment.

The share of foreign investors owning real estate in Dubai is growing steadily.
What is driving the high demand for living space in the largest city in the Middle East?
Many non-residents of the UAE buy highly liquid Dubai luxury townhouses and villas or budget apartments for investment purposes. Let's figure out which objects are worth investing in.
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Dubai real estate market


The opportunity to invest money in real estate in Dubai, in order to subsequently rent it out and receive a stable income or resell it at a profit, attracts investors from all over the world. Citizens of Russia are no exception - according to the consulting company Knight Frank Russia, the UAE ranks second in the list of countries in which our compatriots purchase real estate most often. Moreover, some buyers purchase housing in Dubai in order to obtain a resident visa and move here for permanent residence. Others are engaged in business relocation - they are primarily interested in favorable tax conditions. As a result, the number of real estate transactions is increasing, as is their overall value, as confirmed by the Dubai Land Department. Taking into account the fact that the economy of this emirate is quite stable, the cost of a square meter of housing is projected to increase by an average of 10% per year. While tourist and investment flows are only expanding, let’s consider what real estate options are available today.

Investors are offered a choice of apartments, townhouses, and villas in freehold zones (areas where non-residents of the UAE can purchase real estate for full ownership) both at the foundation pit stage and ready for occupancy.


Real estate sales in Dubai at the end of the second quarter of 2022 reached a 10-year high, which indicates the attractiveness of the local market for buyers. You can choose the appropriate option in different locations:


  • in the richest areas of the emirate (for example, Downtown Dubai or Palm Jumeirah);
  • in business centers under construction (for example, Business Bay Dubai);
  • in new coastal areas (for example, Dubai Creek Harbour).

This is not a complete list of available locations, because today the freehold zones of Dubai, where non-residents can buy real estate, include several dozen areas.


The location of the property plays a role in the issue of recoupment. For example, the return on investment (ROI) for purchasing an apartment located in the Palm Jumeirah area averages 3.71. The ROI of real estate in the Downtown Dubai area is above 3, and housing in Dubai Greek Harbor (The Lagoons) is from 4. You can find a profitable option for any budget.

Demand for real estate in Dubai


According to experts, the demand for real estate in Dubai in 2022 exceeded the figures for 2021 by almost 80%. Investors are investing in both secondary housing and new buildings. During the first quarter of 2022, more than 8,500 purchase and sale transactions of new residential properties were completed.

Investors are actively purchasing so-called off-plan real estate, because the cost of properties under construction is 20% lower than those that are ready.

In contrast to the situation on the Russian market, leading UAE developers adhere to housing delivery deadlines impeccably. The Dubai Land Department strictly controls all stages of construction, due to which the risk of construction “freezing” is minimal. In the case of purchasing off-plan real estate, payment is made in installments: first, the buyer pays an initial payment (at least 20% of the cost), then pays part during construction, and the rest is paid after putting the property into operation. Such rules allow investors to enter into transactions that are safe for them. It is not surprising that under such conditions, the demand for purchasing real estate in Dubai is growing.

What are the benefits of real estate in Dubai?


Property owners in Dubai receive not only comfortable housing near the Persian Gulf. Those who have invested more than $205,000 in a residential property in a freehold zone have the right to obtain resident status. This visa is valid for three years, provided that the owner of the property visits the UAE at least once a year. You can obtain a residence permit even after purchasing real estate with a mortgage. The interest rate in Dubai is only 4%. Some developers offer interest-free installments and split payments into two or three parts. At the same time, the lion's share of transactions can be completed online from anywhere in the world.

In addition, the emirates attract investors with a flexible tax system. The state does not levy income tax on individuals. Consequently, the investor receives income from dividends and rent in full.

In addition, Dubai is a free economic zone, so businessmen often choose this city to relocate their company. With the purchase of real estate in the UAE, you can obtain the right to a three-year business license with possible extension.

Those who have planned to move to Dubai with their whole family get the opportunity to live in one of the safest cities in the world. A high standard of living along with a first-class healthcare system are the undeniable advantages of living in the UAE.


Real estate in Dubai is bought mainly by three groups of people:

  • investors planning to receive income from renting out housing or resale it;
  • expats and businessmen doing business in the free economic zone;
  • immigrants moving to the UAE.

They all want to invest their own funds in real estate in the emirates as profitably as possible. More than 40,000 Russians already live in the UAE. They mainly prefer coastal areas:

  • Dubai Marina;
  • Palm Jumeirah;
  • Business Bay;
  • Downtown;
  • Dubai Hills.

Profitability and payback of real estate in Dubai


It’s quite easy to recoup your investment and earn income from real estate if you rent out apartments and villas. This way you can earn up to 15% per annum. The profitability of housing especially increases during the period of major international events in Dubai. Demand for short-term apartment rentals soars when hundreds of thousands of people flock to Expo or MedLab to showcase medical laboratory equipment.

Another source of profit for investors is the resale of real estate in Dubai. The owner has the right to resell off-plan objects when he pays more than 30% of the cost of housing. Most areas are developed in several stages, for example, the Mohammed Bin Rashid City microdistrict has been gradually expanding since 2012. For investors, such offers are extremely profitable: by investing at the beginning of a new stage of development, you can wait until the value of the property increases by up to 20%. The liquidity of real estate is affected by the location and how developed the infrastructure in the residential complex is.

Features of the process of buying real estate in Dubai


Buying a home in Dubai is easy. First you need to find a suitable property, directly through the developer or with the help of a real estate agency certified by the local Land Department. Such a scheme, established at the legislative level, maximally protects the buyer from unscrupulous sellers. If we are talking about the purchase of a commissioned facility, the parties draw up two agreements: preliminary and a Memorandum of Understanding. At this stage, the buyer pays a deposit and then goes with the seller to the developer's office to obtain a No Objection Certificate (NOC). With the completed document, both parties apply to the Land Department to register the rights of the new owner. Then the entire cost of the transaction is paid. The buyer receives a certificate of ownership (Title Deed) and becomes the full owner of the property.

If an investor purchases an off-plan property, the registration procedure is shortened. The parties enter into an initial sales agreement (Initial Contract of Sale or SPA). The buyer can re-register it to obtain a certificate of ownership only when construction is completed.

What to consider when buying property in Dubai


Of course, buying real estate in Dubai has its own characteristics. Buyers should pay attention to the following points:

  • Non-residents of the UAE are limited geographically when choosing real estate. Foreigners can purchase apartments and villas only in freehold zones.
  • It is important to entrust the selection of housing and the conduct of transactions to trusted brokers. As elsewhere, you can run into unprofessionals and scammers.

Typically, real estate transactions go smoothly.

General provisions for the residence visa
The validity period of a residence visa varies depending on its type and
sponsor. Read about other requirements and application steps. Also
read about how to extend and cancel your residence visa.
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Validity of a residence visa


The validity of a residence visa varies according to its type and the sponsor. It can be for 1, 2 or 3 years on a sponsored visa, or up to 5 or 10 years on an unsponsored visa.


According to recent changes, a residence visa can also be issued for 5 and 10 years, subject to certain conditions. Learn about long-term residence visas, and 5-year retirement visa in the UAE.


The expiry date of the dependent’s residence visa will not exceed that of the sponsor.


Medical test


A residence visa requires applicants who are 18 and above to undergo a medical test to prove that they are medically fit. They must also pass a security check and apply for an Emirates ID card from Federal Authority for Identity and Citizenship.


Required documents


  • A recent coloured personal photo with a white background for the dependent
  • A copy of the passport of the dependent
  • Emirates ID Application receipt
  • Housing lease contract (certified) or proof of owning a residence
  • A copy of the sponsor’s passport with a valid residence permit
  • Job contract of the sponsor
  • A medical fitness certificate (for dependents above 18 years)
  • Entry permit
  • Attested birth certificate of the dependent (children)
  • Mother’s residence photo (for the newborn)
  • Medical insurance or health card
  • Divorce or death certificate (for divorced women and widows)
  • Proof of housing (for divorced women and widows)
  • a proof of the woman’s ability to earn a living (for divorced women and widows)
  • A certificate issued by the university or institute specifying the duration of the study (for students).


Extension of the residence visa for divorced women and widows


When a woman living in the UAE on her husband’s visa, is divorced or widowed, the UAE Government grants her an extension of one year on her residence visa. The extension starts from the date of the death of her husband or the divorce. This type of visa is renewable for one time only and does not require a substitute sponsor. The extension applies to the woman’s children as well, provided they were on their father’s visa at the time of their father’s death or their parents’ divorce.


In addition,

  • the visas of the woman and her children must have been valid at the time of the death or the divorce
  • the duration of the child’s/children’s residence visa should not exceed that of the mother.

Expiry of residence visa on staying out of the UAE


The general rule is that if an expatriate resident lives outside the UAE for more than 180 days continuously, his/her residence visa will be nullified automatically. If this happens, they will have to apply for a new entry permit to enter the UAE again.


However, there are some exceptions which allow an expatriate resident to stay outside the UAE for more than six months and at the same time maintain the validity of his/her residence visa. The rule does not apply to:

  • foreigner wife of an Emirati citizen
  • domestic helpers accompanying Emiratis having a scholarship for study abroad
  • domestic helpers accompanying UAE patients travelling or sent abroad for treatment
  • expatriate residents and their companions sent abroad for treatment, provided they submit a medical report approved by medical authorities in the UAE
  • domestic helpers accompanying members of diplomatic and consular missions representing the UAE abroad and employees of such missions holding residence visas in the UAE
  • expatriate residents working for the public sector sent by their employers to attend training or specialist courses, or those working in their employers' offices abroad and their families who are holders of valid residence visas in the UAE
  • expatriate students studying in universities or institutes abroad (as per Dubai rules). Check with the ICP if this applies to your emirate of residence.
  • domestic helpers of members of the ruling families working in the homes of the royal family abroad and are holders of valid residence visas in the UAE
  • students enrolled in educational institutions abroad, who are holders of valid residence visas in the UAE
  • investors holding valid residence visas in the UAE
  • residents sponsored by UAE diplomatic and consular representatives and their dependents
  • any other person excluded under a decision from ICP, provided that person has a valid residence visa and pay the due fees.

Entry permit for residents staying outside the UAE for over 6 months


UAE residents whose residence visa expired as a result of staying outside the country for more than six months for study, work or treatment, can apply for a permit to enter the UAE.


Requirements to apply for the entry permit

To apply for a permit to enter the UAE by a resident staying outside the UAE for over 6 months, the applicant must:

  • submit the application from outside the country
  • apply request after 180 days of staying outside the country
  • provide a valid reason to justify being outside the country for more than 180 days
  • pay a fine of AED 100 for every 30 days or less spent outside the country.

When the application is approved, the applicant must enter the country within 30 days starting from the approval date.


Benefits of having a UAE residence visa


Being a legitimate resident in the UAE will entitle you to:

Golden visa


The Golden visa is a long-term residence visa which enables foreign talents to live, work or study in the UAE while enjoying exclusive benefits. Investors, entrepreneurs, scientists, outstanding students and graduates, humanitarian pioneers and frontline heroes are among those eligible for the Golden visa. Read about the requirements and benefits of the Golden visa and find digital services to apply for it.


What is the UAE’s Golden visa?


The UAE’s ‘Golden visa’ is a long-term residence visa which enables foreign talents to live, work or study in the UAE while enjoying exclusive benefits which include:

  • an entry visa for six months with multiple entries to proceed with residence issuance
  • a long-term, renewable residence visa valid for 5 or 10 years
  • the privilege of not needing a sponsor
  • the ability to stay outside the UAE for more than the usual period of six months in order to keep their residence visa valid
  • the ability to sponsor their family members, including spouses and children regardless of their ages
  • the ability to sponsor unlimited number of domestic helpers
  • the permit for family members to stay in the UAE until the end of their permit duration, if the primary holder of the Golden visa passes away.

Golden visa requirements


Requirements for the Golden visa depend on the type of residence, whether investor, talent, entrepreneur, etc.

Investors in public investments

If you invest in an investment fund, you may be granted a Golden Visa for a period of 10 years without a sponsor, subject to the:

  1. submission of a letter from an investment fund accredited in the UAE stating that the investor has a deposit of AED two million, or
  2. submission of a valid commercial licence or industrial licence and a memorandum of association stating that the investor’s capital is not less than AED two million
  3. submission of a letter from Federal Tax Authority stating that the investor pays the government no less than AED 250,000 (two hundred and fifty thousand) annually.

Additionally, you must:

  1. own the invested capital completely; it must not be a loan and
  2. provide proof of medical insurance for himself and his family (if any).

Real estate investors


If you own a property or a group of properties, you may be granted a Golden visa for a period of 5 years, renewable on the same conditions and without a sponsor subject to the:

  1. provision of a letter from the land department of the respective emirate stating that he owns one or more properties whose value is not less than 2 million dirhams
  2. purchase of a property with a loan from specific local banks approved by the competent local entity.

Entrepreneurs


If you are an entrepreneur, you may get a Golden visa for a period of 5 years, if you own an economic project of a technical or future nature based on risk & innovation. In addition, you must have an approval letter from each of the following:

  1. an auditor in the UAE stating that the project value is not less than 500,000 dirhams
  2. the authorities in the emirate stating that the project is of a technical or future nature
  3. an accredited business incubator in the UAE to establish the proposed activity in the country.

Outstanding specialised talents

Outstanding specialised talents include:

  • doctors
  • scientists
  • creative people of culture and art
  • inventors
  • executives
  • specialists in scientific fields
  • athletes
  • doctoral degree holders and
  • specialists in the fields of engineering and science.

Subjects relating to engineering and science include:

  • epidemiology and viruses
  • artificial intelligence
  • big data
  • computer engineering
  • electronic engineering
  • software engineering
  • electrical engineering
  • genetics and biotechnology engineering.

If you have an outstanding specialised talent, you may get a Golden visa for 10 years after meeting the requirements mentioned below for each category:

Doctors and scientists


Inventors

  • a recommendation letter from Ministry of Economy stating that your patent has an added value to the country's economy

Creative people in the fields of culture and art

  • an approval letter from the department of culture and arts in the respective emirate.


Executive Directors

  • a copy of a university degree accredited by Ministry of Education with educational attainment not less than a bachelor's degree
  • a letter of experience of no less than 5 years holding the same position
  • a salary certificate with a salary of AED 50,000 at least
  • a valid work contract.

Athletes


Specialists in engineering and science


Outstanding Students

High school students

If you are a high school student and a national-level topper, (with a minimum grade of 95 per cent in public or private secondary school) you may be granted a Golden visa for 5 years without a sponsor, subject to submission of a recommendation letter from Ministry of Education (Emirates Schools Establishment).Duration of the Golden visa for students is 5 years and may be extended if he/she is enrolled in one of the majors/colleges in the country that requires a study period of more than five years.


University students

If you are an outstanding university student, you may be granted a Golden visa for a period of 10 years without a sponsor, provided that:

  • the university must be rated either A or B class by Ministry of Education
  • a recommendation letter from the university or an accredited graduation certificate or an accredited academic record stating that the student’s cumulative GPA is not less than 3.5 for A class universities and 3.8 for B class universities is submitted.

it has not been more than 2 years since you graduated.


Outstanding students of foreign universities may be granted a Golden visa for a period of 10 years without a sponsor, provided that:

  1. The university is rated among the best 100 universities global according to the rating system recognized by Ministry of Education
  2. The student’s cumulative GPA is not less than 3.5
  3. It has not been more than 2 years since you graduated
  4. Graduation certificate is accredited by the Ministry of Education

Pioneers of humanitarian work

If you are a pioneer of humanitarian work, you may get a Golden visa for 10 years. You must be one amongst the following categories to qualify as a pioneer of humanitarian work:

  1. members and outstanding employees who have worked for international and regional organisations for a minimum of five years
  2. members and outstanding employees who have worked for civil associations and institutions of public interest for a minimum of five years
  3. individuals who have received an appreciation award from a local, regional or international organisation that focuses on humanitarian work
  4. funders of humanitarian work provided that the value of the support does not fall below two million UAE dirhams or its equivalent.

Frontline heroes

Frontline heroes who displayed extraordinary effort in crises, such as the COVID-19 pandemic also may get the Golden visa with a recommendation from a competent authority. Frontline heroes include nurses, medical assistants, lab technicians, pharmacologists and other cadres approved by the Frontline Heroes Office.


Green visa for work


What is the UAE’s Green visa?

The UAE’s Green visa is a type of residence visa, that allows its holder to sponsor himself/herself for 5 years, eliminating the need for a UAE national or employer to sponsor his/her visa.

Who can apply for a Green visa?

Freelancers, self-employed and skilled employees can apply for a Green visa.


1-Freelancers and/or self-employed people

Freelancers and/or self-employed people who wish to apply for a Green visa need to submit:

  • a freelance/self-employment permit from Ministry of Human Resources and Emiratisation
  • proof of a bachelor’s degree or a specialised diploma
  • evidence of annual income from self-employment for the previous two years amounting to not less than AED 360,000, or proof of financial solvency throughout their stay in the UAE.

2-Skilled employees

To apply for a Green visa, skilled employees must:

  • have a valid employment contract
  • be classified in the first, second or third occupational level as per Ministry of Human Resources and Emiratisation
  • hold a minimum of bachelor’s degree or equivalent
  • have a salary of not less than AED 15,000 per month.

Renewing the visa

The visa is renewable for the same term upon its expiry.


Standard work visa


A foreigner can get a normal employment visa, usually for two years, if he/she is:

The employer must apply for the standard residence visa.


Virtual work residence visa


Foreigners employed outside the UAE are permitted to live here legitimately with a virtual work visa. The one-year visa allows foreigners to enter the UAE under self-sponsorship and work in line with the terms and conditions issued with the visa.

To apply for a remote work visa, you must provide proof:

  • that you work remotely for an organisation outside the UAE
  • that you receive a monthly income of USD 3,500 (three thousand five hundred US dollars, or its equivalent in a different currency).

Dubai’s virtual working programme

Dubai permits to live in the emirate under the virtual working programme similar to the remote work visa. Under the virtual working programme, you may relocate to Dubai (from outside the UAE) and continue to work for the organisation you are already working for, remotely.

Who is the virtual working programme for?

The virtual working programme is for:

  • people who live and work outside the UAE,
  • entrepreneurs and
  • start-up companies who meet the eligibility criteria.

If your application to live in Dubai is approved by the UAE’s authorities, you can also bring your family along.

Duration of the virtual working programme

The programme is valid for one year, renewable upon re-application.

How to apply for the virtual working programme?

To apply for the virtual working programme, you need to have a passport with a validity of minimum six months and a valid health insurance covering your residency in the UAE.

If you work for a company, you need to:

  • provide proof of employment with a contract valid for one year
  • earn a minimum salary of USD 5,000 per month
  • provide the salary slip for the last month and bank statements for the preceding three months.

If you are a company owner, you need to:

  • provide proof of ownership of company for one year or more
  • have an average monthly income of USD 5,000 per month
  • provide bank statements of the company’s account for the preceding three months.

Cost

The fees for the virtual working programme is USD 287 per person. In addition, you need to pay the premium for medical insurance valid in the UAE and the processing fees. Note that paying the processing fee does not guarantee approval of application.

Benefits

Through the virtual working programme, you can obtain all services including telecommunications, utilities, medical and schooling. You can take advantage of Dubai's robust and seamless digital infrastructure, global networking opportunities and zero income tax for individuals. Read more about the benefits of working remotely in Dubai.

Residence visa for the retired


Retired residents over the age of 55 can apply for a long-term visa of 5 years.

For a retiree to be eligible for the retirement visa, he/she must:

  1. have worked for not less than 15 years inside or outside the UAE, or be 55 years old or more at the time of retirement
  2. own a property/properties of no less than AED 1 million, have financial savings of no less than AED 1 million or have a monthly income of AED 20,000 (15,000 a month for Dubai), and provide bank statement for the last six months.

The visa is valid for 5 years with the possibility of renewing it if they meet the eligibility criteria.

Residence visa for doing business in the UAE


The Green visa is given to investors establishing or participating in commercial activities in the UAE. Find out other requirements and the steps to apply.

Green visa for investors

The Green visa for investors is given to investors establishing or participating in commercial activities in the UAE. It replaces the previous residence visa that was valid for 2 years only. Requirements include:

  • approval of the ICP on the investment as per the investors rating system applied
  • proof of the investment (If the investor/partner has more than one licence, the total invested capital will be calculated)
  • approval of the competent local authorities.

Residence visa for studying in the UAE


A student can stay in the UAE for studying, either under the sponsorship of his/her parent, who should be a resident of the UAE or under the sponsorship of the accredited university/college he/she is studying at. At the same time, Golden visa is issued to outstanding students.


Student visa


A student can stay in the UAE for studying, either under the sponsorship of his/her parent, who should be a resident of the UAE or under the sponsorship of the accredited university/college he/she is studying at.

Student Affairs offices at universities will facilitate the process to assist students with their visas.


A student visa is given for a duration of one year, at a time, renewable for a similar period upon proof of continuation of a study issued by the educational institute where the student is studying.


Expatriate residents can sponsor their male child/children up to the age of 25.


Therefore, male students over the age of 25 can stay on their parents’ sponsorship if they provide evidence of attending a higher educational institute for a minimum of one year’s course. Expatriate residents may continue to sponsor their female children for study, regardless of their age, until she is married.


Key requirements

To apply for a student visa, you must submit:

Residence visa for families of university students

Family members of foreign students studying at the UAE’s universities may stay in the UAE, as long as they can afford suitable housing. The Government permitted such a move with the aim to achieve moral stability for the students.

Residence visa for family members


Both, employers and employees with valid UAE residence visas can sponsor residence visas for their families. Unlike before, employees can sponsor their families regardless of their job titles if they earn a minimum salary of AED 4,000 or AED 3,000 plus accommodation. Clearing medical fitness examination applies to all newcomers who have completed the age of 18.


Sponsorship requirements


Expatriate residents can sponsor their families to reside in the UAE if they have a valid residence permit/visa.

The sponsor must have a minimum salary of AED 4,000 or AED 3,000 plus accommodation.

Male and female family members who are to be sponsored and who have completed the age of 18 need to undergo and pass medical fitness tests at approved health centres in the UAE.

Notes:

  • A mother can sponsor her children in special cases approved by the ICP.
  • A resident sponsor has 60 days to apply for his dependents’ residence visa after they enter the UAE under an entry permit.
  • A resident can sponsor his parents, and the residence visa will be granted on a yearly basis regardless of the duration of the sponsor’s visa.
  • The type of profession is no longer a condition for an expatriate worker to be able to sponsor his family visas.
  • Medically unfit people will not be granted a residence visa.
  • Residents who are detected with dormant or inactive pulmonary tuberculosis are also considered medically fit and are granted a one-year ‘Health Fitness Certificate for Residence’ subject to treatment and follow-up by the respective health authority.

The conditions are subject to change from time to time. Kindly check with Federal Authority for Identity and Citizenship (ICP) or GDRFA.


Sponsoring your wife and children


An expatriate resident may sponsor the residence visa for his wife and children if he fulfils the above mentioned sponsorship requirements.

To sponsor the wife, the expatriate resident must prove an existing marital relationship by submitting an attested marriage certificate in Arabic or duly translated into Arabic by a certified translator.

Sponsoring two wives

In strict cases, a Muslim resident may be allowed to sponsor his two wives, if he meets certain terms and conditions set by ICP.

Sponsoring daughters

An expatriate resident can sponsor his daughter/s only if she/they is/are unmarried, with no restrictions with regard to her/their age/s.

Sponsoring sons

A male or female resident can sponsor his/her son/s until he is 25. Sons of determination (those with special needs) can be sponsored with no restrictions with regard to his/ their age/s.

Sponsoring newborns

For babies born in the UAE, a residence visa must be applied for, within 120 days of its birth to avoid getting fines.

Sponsoring stepchildren

An expatriate resident can sponsor his stepchildren, subject to GDRFA’s conditions which include a deposit for each child and a written no-objection certificate from the biological parent. Their residence visas are valid for one year; renewable annually.

Documents required to sponsor wife and children include:

  • application form - either online or through a registered typing office
  • passport copies of the wife and children
  • photos of the wife and children
  • medical clearance certificate of the wife and children above 18 years
  • copy of the husband's employment contract or company contract
  • salary certificate from the employer stating the husband’s monthly salary
  • attested marriage certificate
  • registered tenancy contract.

Cancellation

The family's residence permits are linked to the residence permit of the sponsoring family member . If the sponsoring family member's visa is cancelled, it requires cancellation of the visas of the dependents.

Dependents are granted a 6-month grace period from the date of expiry or cancellation of their visas to obtain a new residence permit. If the sponsor fails to renew or cancel the visa of his dependents, he could be liable to pay a fine.


Sponsoring your parents


An expatriate employee can sponsor his parents for a year's stay by paying a deposit as a guarantee for each parent as stipulated by the respective immigration department.

An expatriate employee cannot sponsor only one of his parents. He needs to sponsor both parents together. He also needs to provide proof that he is their sole support and that there is no one to take care of them back home.

If one of the parents has passed away or if the parents are divorced, related official documents would be needed as justification to sponsor only one of the parents.

To sponsor parents, the employed expatriate resident must earn the minimum salary stipulated and obtain a medical insurance policy for parents with the minimum coverage stipulated for each, to be renewed each year.

According to the Amer website, DNRD in Dubai stipulates a minimum salary of AED 20,000 to sponsor parents’ visa.

Residence visa for a UAE citizen spouse parent and child

A UAE citizen’s spouse, parent or child, who holds a foreign passport, can get a UAE residence visa for 5 years without having to work in the UAE. In this case, the sponsor shall be the UAE citizen.

A foreign widow or divorced woman, who is a mother of a UAE citizen, can get a residence visa without having to work in the UAE. In this case, the sponsor shall be the oldest child.

Opening a UAE bank account
The UAE banking system is one of the most stable and reliable in the world. Opening a bank account in the UAE offers many advantages for doing business.

It is also necessary for those who decide to move for permanent residence or simply live in the country for a while.


Stages of opening a bank account

  1. It is necessary to decide on the type of company to be created.
  2. Depending on your status (resident, non-resident) and type of company, choose a bank that is ready to open an account for you.
  3. Carefully study the terms of service, prepare a minimum deposit if necessary.
  4. Collect a package of required documents and send them for preliminary review.
  5. Appear in person at the bank to speak with a consultant.
  6. If your decision is positive, wait one or several weeks to start using the account.

UAE banks


UAE banks are among the most reliable in the world. There are local institutions and branches of foreign companies. All of them are under the control of the Central Bank of the UAE.


Opening a bank account for individuals


Residents of the UAE can open a bank account without any problems. Only savings accounts are available to non-residents.

For non-residents

If you do not have a resident visa and Emirates ID, then you are a non-resident. Most banks require a high minimum balance on the account, justifying the need to open it. You have a good chance if you have a monthly income of $14,000 and a permanent account balance of $27,000.


However, you will not be issued a full-fledged current account. You can get a credit card debit when you make a certain deposit. A checkbook is issued only to residents.


Information about the accounts of non-residents is transferred according to international exchange to the country of citizenship.


To open an account you need:

  1. Passport .
  2. Visa.
  3. Income certificate or employment contract confirming the origin of your funds.
  4. Bank statement for 6 months.
  5. Confirmed residential address in the UAE (paid utility bills).

For residents

Residents are offered all available banking services: current and savings accounts, loans, checkbook registration. You can safely choose any bank.


Data on the accounts of UAE residents remains completely confidential and is not transferred to other countries.

To open an account you need the following documents:

  1. Passport.
  2. Resident visa.
  3. Emirates ID.
  4. Confirmed residential address in the UAE.

Opening a corporate account


There are many banks in the UAE, all of them cooperate with companies and are interested in promoting and developing your business.


When considering an application to open a corporate account, the bank evaluates:


  • type of company (preference for onshore companies);
  • Do the founders have a residence visa?
  • type of activity (financial transactions are considered in detail);
  • organization structure;
  • having enough money to ensure a minimum balance;
  • willingness to use additional insurance and investment services.

Opening and servicing conditions for onshore companies will be more interesting.

Required documents:


  • completed questionnaires about the company, founders;
  • passports of the founders with a stamp of entry into the UAE;
  • resident visas and Emirates ID (if available);
  • charter, constituent agreement;
  • licenses received;
  • certificate of registration;
  • business plan;
  • contracts or letters from partners;
  • resume of the founders;
  • documentary proof of address in the UAE;
  • bank statement of the founders' account for 6 months;
  • confirmation of the origin of funds for depositing the authorized capital into the account.

Each bank's list will be slightly different. Founders from “high-risk” countries (including the CIS and Russia) are treated with caution. Additional checks of the founders and the origin of funds are possible.


Cost of banking services


Each bank has its own cost of service.


  • It is possible to maintain an account for free if you maintain a certain amount of the minimum balance on it, some charge about 50 dirhams per month.
  • Internet banking services will cost from 500 dirhams per year.
  • There is a fee when withdrawing cash from other ATMs.
  • For purchases on foreign sites or in other currencies you will have to pay 1-3%.
  • If the account balance is below the minimum (according to the agreement), you will pay a fine.
  • A large fine and even criminal liability is provided for issuing a check without having enough money in the account.
  • Closing the account is also paid.

You will pay about AED 1,000 per year for account maintenance.


KYC requirement


The UAE has a “ KYC ” system – “Know your customer.” You are obliged to provide all requested documents and answer questions of interest to the bank.


They may arise when registering an account or when performing banking transactions. If something seems suspicious, they will not open an account for you or make a payment.


The purpose of KYC is to understand and select clients, control transactions to reduce financial risks.


Possible reasons for refusal:


  1. The client did not provide the documents requested to confirm his identity and status.
  2. There is no confirmation of the origin of funds.
  3. Blocking other client accounts.
  4. Repeated violation of the limit on account balance or turnover for corporate clients.

for companies

Before providing a loan, the bank evaluates the company, its activities and founders.


Primary requirements:


*Residence visa available.

*The company has been operating for more than 3 years.

*The company has the minimum required turnover.

*Nature and type of activity.

*The founders are not on blacklists of financial organizations.


Many banks have good lending conditions for startups.


To obtain a loan you will need the following documents:


  • Letter of recommendation from other banks (if the current account is opened in another bank);
  • Bank account statement;
  • Reporting and constituent documents of the company.
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