In 2002, the Dubai government permitted the ownership of freehold property to non UAE nationals. Following Dubai’s lead, other Emirates have also started offering freehold properties to citizens of other countries.
However, Abu Dhabi does not offer freehold property ownership at present. It only allows a 99 year long-term land title agreement. Please note that this law only applies to the emirate of Abu Dhabi and is not a national law governing land ownership in the UAE.
When you are ready to proceed with buying a property in the UAE, a reservation fee is paid. This will vary depending upon the cost of the property and development. Then, within seven days of this payment, a deposit of around 10 to 15% of the original price is paid. This is done to secure your property and take it off the market.
You will then be issued a Sales and Purchase Agreement (contract) and given a specific execution date by the end of which the contract would need to be signed and returned. On receipt of signed documentation, you will be issued a countersigned contract. Payments then continue to be made in accordance with the payment schedule.
The above procedures can vary from emirate to emirate. It is important that you verify the legal process before buying.
There is no federal tax legislation in the UAE as each Emirate has its own tax law. Taxes that are not applicable in the UAE include personal income tax, capital gains tax, value-added tax, withholding tax, and corporate tax. In practice, only oil, gas, petrochemical companies, and branch offices of foreign banks are required to pay taxes.
There are no political parties in the UAE. The UAE is a federation of seven absolute monarchies, namely; the Emirates of Abu Dhabi, Dubai, Sharjah, Umm Al Quwain, Ras Al Khaimah, Ajman, and Fujairah. The ruler of Abu Dhabi is President of the United Arab Emirates and the Head of State. The ruler of Dubai is the Vice President and Prime Minister of the UAE. Each individual emirate retains its judicial and political power although the federal government maintains exclusive jurisdiction in a number of areas such as foreign affairs, defense, health, and education.
The rulers of the seven emirates comprise the Supreme Council. The President and Vice-President are elected by this council every five years. The Presidency is de facto hereditary to the Al Nahyan clan of Abu Dhabi and the Premiership is hereditary to the Al Maktoum clan of Dubai.
Since its independence in 1971, the UAE has worked towards developing itself into a democratic government. On December 1st 2005, Sheikh Khalifa bin Zayed Al Nahayan announced that half of the Federal National Council would be elected while the other half appointed by the rulers. Furthermore, increasing American influences are also driving true democracy and freedom in the UAE.
The UAE is Middle East’s biggest economic success story. Since 1981, UAE’s dirham has been linked directly to the U.S. dollar at a rate of AED 3.67 to $1. The UAE has achieved this stability through a tight monetary policy that regulates domestic liquidity under an open exchange and payments system. The UAE Central Bank exercises a number of controls over the Dirham to ensure its stability internally and externally.
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