Freehold Ownership

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Freehold Ownership in Dubai and Its Key Features and Permitted Activities

The change in the freehold ownership policy in Dubai has significantly supported and enhanced the flexibility of the national economy, creating a global investment climate to attract more entrepreneurs to establish new projects that support the diversification of the economic base. Regarding the amendments to freehold ownership laws in the UAE, they include several key aspects, which we will discuss in detail below, with a focus on the full ownership of companies by foreigners.

Content of the Article

  1. What is Freehold Ownership in the UAE?

  2. Freehold Ownership in Dubai

  3. Laws Governing Foreign Ownership of Companies in the UAE

  4. Full Ownership of Companies by Foreign Investors

  5. The Status of Existing Companies Under the New Freehold Ownership Policy

  6. Freehold Zones in the UAE

  7. Permitted Activities for Foreign Ownership in Dubai

  8. Conditions for Foreign Ownership in the UAE

  9. Ownership Rights for Saudis in Dubai

  10. Advantages of Investing in the UAE Under Freehold Ownership

  11. Establish Your Company with 100% Ownership with H A M

  12. Frequently Asked Questions About Freehold Ownership in Dubai

What is Freehold Ownership in the UAE?

According to Decree No. (26) of 2020, which came into effect in June 2021, freehold ownership in the UAE allows expatriates to fully own properties, land, or companies (100% ownership) without the need for a local Emirati partner. This applies to all nationalities without any restrictions.

Freehold Ownership in Dubai

All expatriates from various countries can now invest in the UAE and fully own properties or businesses within designated areas, subject to certain conditions and policies outlined in the decree.

Laws Governing Foreign Ownership of Companies in the UAE

The freehold ownership law in Dubai has clarified several policies regulating the rights of foreign investors:

  • The law applies only to freehold zones.

  • Each zone determines the list of economic activities available for foreign ownership.

  • Full ownership is limited to certain commercial and industrial activities, excluding strategic sectors such as banking, finance, and insurance.

  • Companies must comply with the conditions set by the respective freehold zones, including minimum capital requirements.

Full Ownership of Companies by Foreign Investors

The decree introduced several amendments to the conditions for establishing companies in Dubai:

  • Foreign companies can open branches in freehold zones without a local Emirati agent.

  • Legal entities can establish private joint-stock companies and fully own their shares without local partners.

  • Single-person companies are also granted full ownership rights.

The Status of Existing Companies Under the New Freehold Ownership Policy

Existing companies remain unchanged under the new policy. However, if partners wish to modify the ownership structure or transfer full ownership to foreign partners, this can be done with the consent of all partners and in accordance with the company’s founding contract.

Freehold Zones in the UAE

Freehold zones are not limited to Dubai but extend across all seven emirates. Below is a summary of key freehold zones in the UAE:

  1. Abu Dhabi Freehold Zones:

    • Masdar City (renewable energy and clean technology).

    • Khalifa Industrial Zone (KIZAD).

    • Abu Dhabi Ports Free Zone.

    • Abu Dhabi Airports Free Zone.

    • Twofour54 (media and marketing).

  2. Dubai Freehold Zones:

    • Dubai Maritime City (maritime services).

    • Dubai CommerCity (e-commerce).

    • Dubai South (electronics and AI).

    • Dubai World Trade Centre (exhibitions and conferences).

    • Dubai Design District (fashion and arts).

    • Dubai Silicon Oasis (technology).

    • Dubai International Financial Centre (DIFC).

    • Dubai Internet City (IT services).

    • Jebel Ali Free Zone (JAFZA).

  3. Sharjah Freehold Zones:

    • Sharjah Publishing City.

    • Sharjah Media City (Shams).

    • Sharjah Airport International Free Zone.

    • Hamriyah Free Zone.

  4. Ajman Freehold Zones:

    • Ajman Free Zone.

    • Ajman Media City.

  5. Fujairah Freehold Zones:

    • Fujairah Free Zone.

    • Creative City.

  6. Umm Al Quwain and Ras Al Khaimah Freehold Zones:

    • Umm Al Quwain Free Trade Zone.

    • RAKEZ (Ras Al Khaimah Economic Zone).

Permitted Activities for Foreign Ownership in Dubai

Each freehold zone announces the list of permitted activities. In Dubai, foreign ownership is allowed in over 1,000 commercial and industrial activities, including:

  • Construction and infrastructure services.

  • Vehicle and automotive trade.

  • General trading (excluding crude oil trade).

  • Agricultural, tourism, health, and educational projects.

  • Food manufacturing and packaging.

  • Clothing, cosmetics, and consumer goods production.

  • Light, medium, and heavy industries.

Conditions for Foreign Ownership in the UAE

The decree does not impose complex conditions for freehold ownership. However, investors must comply with the policies of the respective freehold zones, including legal age, eligibility, minimum capital requirements, and residency documents.

Ownership Rights for Saudis in Dubai

The UAE has granted several facilitations to Saudi investors to strengthen bilateral investment ties, including:

  • Exemptions from office space rental contracts.

  • Waiver of subscription fees.

  • Permission to work in oil industries in Jebel Ali.

  • Allocation of over 1,000 square meters for investment projects.

Advantages of Investing in the UAE Under Freehold Ownership

  • Over 40 free zones with diverse activities.

  • Access to more than 2,000 commercial activities.

  • Flexibility in choosing the legal structure of companies.

  • No restrictions on the nationality of board members.

  • No minimum capital requirement for some companies.

  • Long-term golden visas for investors and their families.

  • Full profit repatriation without income tax (except for oil companies and banks).

Establish Your Company with 100% Ownership with H A M

H A M provides comprehensive services for company formation in the UAE, including:

  • Feasibility studies.

  • Visa processing and bank account opening.

  • Business license issuance.

  • Drafting contracts and business plans.

  • Accounting and tax consultancy.

Frequently Asked Questions About Freehold Ownership in Dubai

  1. Can Syrians own property in Dubai?
    Yes, Syrians can fully own property in Dubai’s freehold zones.

  2. What is the foreign freehold ownership law?
    It allows foreigners to own properties or companies 100% without a local partner.

  3. Can Arabs own property in the UAE?
    Yes, Arabs from various countries can fully own property in designated freehold zones.

  4. Can foreigners own property in Dubai?
    Yes, the 2020 amendment allows 100% foreign ownership in Dubai.

  5. What are the capital requirements for freehold ownership in Dubai?
    Capital requirements vary depending on the activity, legal structure, and free zone policies.

  6. Does owning property in Dubai grant residency?
    Yes, investors can obtain a residency visa if the property value exceeds AED 1 million.

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