Sunday, November 27, 2005

New property law may only grant leasehold rights to foreigners

According to industry sources, the new federal property law, expected to be issued this year, may fall short of allowing freehold ownership of properties to foreigners. A 99-year leasehold to foreign buyers might be offered instead.
The government will issue the new federal property law by the end of the year. However, according to the UAE constitution, individual emirates are allowed to adopt their own property laws, giving the country the needed flexibility.
Industry sources added that Abu Dhabi will follow the federal law, but is expected to grant freehold ownership of property to UAE and GCC nationals while a 99-year leasehold to foreigners. Dubai, however, will allow freehold ownership to foreigners in selected areas of land, master-planned by some government-owned entities.

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