Guidelines to Protect Your Investments from UAE Law: Legal Advice for Foreign Investors in Dubai.

Legal Guidelines to Protect Your Investments from UAE Law

Legal Advice in UAE

Investing in a property being resold in the Emirates as a foreigner is much like the procedure in other countries, but it is safer when you get legal advice in UAE. You locate goods and area an official offer, usually through the broker. This means that in the UAE there’s a dual legal system, including the national judiciary and the local court. Due to this, there may be significant differences involving the Emirates when working with property problems. Here are some of the guidelines to protect your investments from a legal perspective you might want to know.

Property Investment is a great way to make a profit and raise your income, but some risks may impact the entire project – especially if you are not an experienced investor in Dubai. Some laws will protect your investment from the risk of double taxation, and you can have legal advice if you have any doubts about the legalities. 

Acquiring properties by a foreigner in the UAE is not easy. Each emirate is directed by rules and regulations regarding the sale and purchase of Real Estate properties. Moreover, each emirate enjoys autonomous authority as to promulgation of its laws and regulations. It is also important to note that the UAE has a twin legal system: the federal and the emirate level.

Even though foreign ownership is permitted, there are limitations to title to a specific area for certain nationalities to be considered. From a legal standpoint, the property’s location is crucial for expats or foreigners to own real property in the UAE.

Guidelines to Protect Your Investments from UAE Law
Even though foreign ownership is permitted, there are limitations to the title.


If you assessed the developer is approved through a regulatory agency and have discovered a property for sale in:

  • Dubai-Dubai Regulation No. 3/2006
  • Sharjah – Section of Property Enrolment
  • Ajman – Ras al Khaimah Decision No. 18/2005
  • Fujairah – Seek advice from the Fujairah Municipality
  • Umm al Qaiwan – Assess with Authorities of Um Al Qaiwan (Arabic website only)

Make sure:

  1. You’ve got checked out other properties the program has finished ensuring quality and the finishes;
  2. You’re alert to how much you’ll be likely to pay and when;
  3. You’ve got verified that in the community of your choice, you can buy real estate as a foreign investor;
  4. You or your attorney have browsed the limited details of the contract to make sure what duties the developer has if the job just isn’t finished and you comprehend the timescales involved;
  5. Additionally, you will be likely to cover a premium that is usually a portion of a transport fee and the initial cost. Representative’s fees typically are between 2% – 3%. You should confirm this before entering right into a contract and check for just about any hidden prices.

There are designated places where foreign nationals can find property’ freehold- leasehold.’ Try to get legal advice in UAE to discuss these options.

Research can hopefully enable you to avoid any pitfalls later on and is predominant. Before entering right into a contract, you need to seek independent advice.

A large proportion of foreign nationals purchase property off-plan straight from your developer and negotiate alone.

In Dubai, for example, Dubai Law No. 7/2006 is the prevailing law that grants a foreign national or an expat the right to purchase a freehold property or own a usufruct to a property for up to 99 years. Dubai has minor restrictions when it comes to foreign property ownership. It would be best if you thought about seeking legal advice in UAE before signing a contract.

In contracts, be entirely conscious of end dates and the timescales along with every one of the prices involved.

If you happen to invest in a property off-plan, expect to cover around 10% as a preliminary deposit. After that, the staged payments on given dates before the house is finished. This is supposed to be stated in your contract. There’s presently no legal requirement to obtain the professional services of a lawyer to get a real estate we’d strongly help one to do so.

Buyer’s checklist

  1. You’ve considered all costs required to incorporate deposit, and your lender has approved your loan, broker fees, transport fees, etc.
  2. You’ve got talked to some property owners or agents that should be documented
  3. You’ve got verified that in the community of your choice, you can buy property as a foreign investor
  4. You’ve got ran a cost check to confirm the real estate you’re buying is being offered a fair market value
  5. You, therefore, are alert to your contractual duties and have sought legal advice in UAE and have emphasized any concerns you’ve got with the pertinent bodies


Before you are doing whatever, you should contemplate what funds you’ve got accessible; you should think about the deposit, the property’s price, transport fees, and real estate agent fees. You consider the results in the event the marketplace changes and should also think about modifying the local currency contrary to the GBP.

Mortgage laws frequently change, and for you to know what the changes mean, you should keep current with local news through UAE papers.

Borrower’s checklist:

You’ve got located a lender and verified what you’ll be anticipated to cover per month and how much you actually can borrow.

You computed your prices so and had been proposed the fees are on the very top of the cost of the entire property.

If you have started an area bank account and supplied all the paperwork needed:

  • ID card ( in case that it’s appropriate)
  • Evidence of address
  • Proof of residency
  • bank statements
  • letter from employer verifying wages

Recently rental costs have considerably dropped, making the marketplace a competitive place.

You need to use agents that are registered. For Dubai, a request to find out their RERA card may verify the representative is acting in an ability that is legal and never freelancing, which is not legal in the UAE. You need to be prepared to cover a fee to represent around 5% of the annual rent.

  • Read the contact within and be sure to comprehend that which you’re signing. What are your duties?
  • Which are the landlord’s obligations for maintenance and repairs?

By way of a system referred to as Tawtheeq, there’s the compulsory enrolment of tenancy contracts in Abu Dhabi. By way of a database for many short-term lease contracts, this registration system safeguards renters and landlords’ rights.

Most likely, you have to supply a duplicate of your passport and evidence of residency when you are successful in your property search. Only then will you be anticipated to deposit 5% of the yearly rent to the landlord to insure the property. Additionally, you are expected to give several post-dated cheques; it still depends on the landlords. It’s vital that you provide when the checks are soon submitted, the contract clearly says. It would be best if you photocopied the checks you might be offering as evidence of that which you’ve got supplied.

It’s prohibited to bounce a cheque in the UAE if your check is submitted without sufficient funds to cover the fee, then you can face arrest and detention.

Renters Checklist

  1. Find out more about the marketplace, talk to local real estate agents, have a look at papers and local sites
  2. Think about the neighborhood amenities; as this could substantially enhance the span, you also need to consider the traffic in your area your journey
  3. If you should be utilizing an agent, you need to check they have been registered
  4. you need to happen to be made conscious of what your duties are within your contract – be sure to browse the tiny print
  5. Before signing the contract, contemplate legal advice in UAE services
  6. check whether your contact must be registered
  7. you must look into insuring your contents

Documentation needed:

  • ID card ( in case that it’s appropriate)
  • Evidence or address
  • Proof of residency
  • bank statements
  • letter from employer verifying wages
Guidelines to Protect Your Investments from UAE Law
Before signing the contract, contemplate legal advice in UAE.

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