UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva and Sean Cope, DLA Piper Middle East LLP
1. General 1.1 Main Sources of Law
opment is more sophisticated than in 2008 dur - ing the nascent years of the UAE market, when it opened to foreign ownership. This has helped the market to respond to the challenges and opportunities brought about by economic and geopolitical events. The UAE is also taking positive steps towards regulating and embracing digital finance. Tokeni - sation, underpinned by blockchain technology, is attracting interest among major developers, given its potential for increased capital access. The UAE Security and Commodities Authority and its ADGM and DIFC counterparts are each focused on putting regulatory environments in place to encourage crypto-fundraising and develop markets for trading within the UAE. 1.3 Proposals for Reform There is no formal requirement in the UAE to make public any proposals for reform. 2. Sale and Purchase 2.1 Categories of Property Rights In the UAE, five main types of property interests can be held: • absolute ownership (freehold); • usufruct interest; • musataha interest; • leasehold interest; and • granted land. Absolute Ownership (Freehold) In Abu Dhabi, the following may have absolute ownership of real estate: • UAE nationals and UAE-incorporated compa - nies wholly owned by them;
The United Arab Emirates (UAE) Civil Code (Law No (5) of 1985, as amended) and the UAE Con - stitution provide regulation of property and prop - erty transactions at a federal level. Laws relating to real estate ownership are enacted by each of the seven Emirates within the UAE. Also within the Emirates are “free zones”, which are authorised to issue their own laws and regu - lations. For example, the Abu Dhabi Global Mar - ket (ADGM) and the Dubai International Financial Centre (DIFC) have real estate laws that differ to the remainder of Abu Dhabi and Dubai. This guide focuses on Abu Dhabi and Dubai, which are the main commercial hubs and attract the most foreign investment into real estate in the UAE. 1.2 Main Market Trends and Deals The Dubai real estate market continues to attract record foreign direct investment (FDI) inflows, with the UAE ranking second globally in the number of greenfield FDI projects in 2023. The authors have noticed a trend of regional develop - ers partnering with international developers on large-scale development projects as an alterna - tive means of sourcing international investment. A particular growth area is branded residential projects, with Dubai having the largest number of completed and of pipeline schemes in the EMEA region. A noteworthy trend is the increase in standalone branded residential projects (with - out a hotel component). The UAE has been resilient to rising inflation and increases in interest rates. The regulatory framework for real estate investment and devel-
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