The reasons for this were quite simple. Dubai, unlike Abu Dhabi doesn’t have oil riches. Due to this it has always focussed on developing its economy through other means, primarily by establishing itself as a trading hub between the East and the West. Additionally, Dubai has also pursued its goal of establishing itself as the tourism destination within the region. Both factors have contributed heavily in the promotion of real estate development in Dubai.

First steps in promoting the real estate sector in Dubai began way back in 1997 when the Dubai government announced the set-up of publicly quoted companies such as Al Nakheel Properties and Emaar Properties.

In 1998, Emaar began work on Dubai Marina with the Emirates Living Community comprising Emirates Hills, The Meadows, The Springs and The Views following soon after.  These developments were the first to be offered on a leasehold basis, but unfortunately didn’t get the response from the market as expected.

Things were to change drastically in May 2002, when Dubai’s Crown Prince General Sheikh Mohammed bin Rashid Al Maktoom issued a decree allowing expatriates to buy and own freehold property in selected areas of the city – now referred to as New Dubai. Under the decree all previously developed leasehold property was converted to freehold. Currently freehold property in Dubai is limited to Jebel Ali, Jumeirah and certain areas on Sheikh Zayed Road and along Emirates Road.

May 2002 also saw the announcement by Al Nakheel to develop the man-made island, The Palm Jumeirah and was followed a year later by their second such project, The Palm Jebel Ali.

As a result of the property boom a number of new developers joined the market. Some of the more popular ones are Damac Properties, Dubai Properties (Estithmaar Realty Fz) and ETA Star Properties.

The much awaited law legalising foreign ownership of properties in designated areas of Dubai came in to effect on March 14, 2006. The law however, didn’t give property owners permanent residence visas or an automatic right to work in Dubai.

Once Dubai had taken the bold step of offering freehold properties to expatriates, it wasn’t long for the other Emirates to follow suit.

Here’s how each Emirate approached the issue of freehold property.

Abu Dhabi and Al Ain
Coming into effect on August 14, 2005, Abu Dhabi’s property law permits land ownership for 99 years as well as a renewable 50-year surface ownership to foreigners in specified areas in Abu Dhabi. Projects initiated by Aldar Properties, the Al Reef Villas project by Manazel and Hydra Properties allow foreign ownership according to the new law.

Ajman
The second Emirate to follow Dubai’s example was Ajman which announced 15 freehold residential apartment buildings named Al Naeemiya Towers which were completed in 2006. Later the company which developed the Al Naeemiya Towers continued expanded their Ajman properties portfolio by announcing projects such as Al Corniche Tower, Al Khor Towers and Al Rahidiya Towers.

Al Ameera Village, costing an estimated US$ 300 million (AED 1.1 billion), was announced by Tameer Real Estate as a freehold residential and commercial project. Located on the Emirates Ring Road it was expected to be completed by 2007. Other projects on Emirates Road include Al Humaid City and Emirates City.

Fujairah
Fujairah’s venture into the freehold market is limited and consists of the 43-storey 170-metre Al Jabar Tower. The project is being developed by Al Jabel Contracting and will have 270 residential apartments, commercial shops and showrooms.

Ras Al Khaimah
The first Emirate to follow Dubai’s example, Ras Al Khaimah included Al Hamra Village in its list of freehold properties. This project consisting of 1,300 residential units was to be completed by 2007. Another freehold development in the Emirate is The Cove. This five-star resort facility is spread over 50 acres of beachfront land. Saraya Islands covering one million square metres is another popular tourist development in the Emirate.

RAK Properties has been set-up by the Emirate’s government as its own public joint stock development company. The company received freehold rights for all its properties from the city’s ruler in November 2005. Projects planned by RAK Properties include Julfar Towers, Khor Qurm, Mangrove Island and Mina Al Arab.

Sharjah
Although currently stuck with leasehold properties, Sharjah has slowly begun offering property for foreign ownership. Upcoming projects include ABBCO Tower, Sharjah Gate, the 32-storey Al Taawun Tower and the 47-storey Al Sandos Tower. Tameer will also be developing a number of towers throughout Sharjah while Al-Hanoo is currently developing the 60 million square foot Nujoom Islands.

Umm Al Quwain
According to Umm Al Quwain’s property ownership law, non-GCC nationals can only own the property but not the actual land. The Emirates Modern Industrial Area, located near the famous UAQ Aviation Club, is being developed by Tameer; the area will mainly cater to the manufacturing industry. Tameer also plans to develop the AED 30 billion Al Salam City, located along the Emirates Road in Umm Al Quwain; the project will be completed by 2010.

Currently no federal law exists in the United Arab Emirates defining freehold. Once such a freehold property law is in effect, it will mean that the property purchased by an expatriate will be transferred to their name for life allowing them to register the property in the Lands Department.

As the owner, they will then have full rights to the property including the right to sell, lease or rent at their own discretion. Such property owners and their immediate family will be able to obtain renewable residence visas for life, which could cost AED 5,000 per person.