Table of Contents
Frequently Asked Questions
1. What is the Property Investment Funds Law in Dubai?
It's Decree No. 22 of 2022, enacted by Sheikh Mohammed bin Rashid Al Maktoum to encourage real estate investment funds in Dubai. The law grants registered funds specific privileges, including the ability to invest in areas where foreign ownership is normally restricted.
2. What are the requirements to register a fund under the new law?
The fund must hold a valid license from the appropriate authority, own property assets worth at least AED 180 million (USD 49M), not be suspended from trading on Dubai's financial markets, and pay a registration fee of AED 10,000 (USD 2.7K).
3. Can foreign investors own property in restricted areas through real estate funds?
Yes. Registered funds can acquire freehold, usufruct, and long-term lease rights in Dubai areas where foreign ownership is normally prohibited. Selling property in these districts requires preliminary approval from the special committee.
4. What are the registration fees for property transactions under the law?
A registered fund pays 2% on property purchases and usufruct or long-term lease registrations, and 4% on sales or waivers of long-term lease rights. These fees apply only to property dispositions, not to share transactions by fund shareholders.
5. Why is Dubai an attractive market for real estate investment?
Dubai offers 5.19% average rental yields (higher than New York, London, Singapore, and Hong Kong), lower property prices per square metre than most international cities, zero property tax, strong safety rankings, and fast-track residency visa pathways for property investors.
Topic Summary
1. Enhanced Regulatory Framework
The introduction of the new real estate funds law establishes a robust and transparent regulatory framework, providing investors with greater confidence and legal protection. This regulatory clarity helps mitigate risks and ensures compliance with international best practices.
2. Increased Access to Diversified Investment Opportunities
By facilitating the formation of real estate investment funds, the law allows investors to pool capital and access a broader portfolio of property assets. This diversification reduces exposure to market volatility and enhances potential returns.
3. Improved Market Liquidity
The ability to buy and sell shares in real estate funds rather than physical properties improves liquidity for investors. This flexibility offers a more efficient exit strategy compared to traditional real estate investments, making property investment more attractive.
4. Attractive Returns Supported by Dubai’s Growth
Dubai’s dynamic economy and status as a global hub contribute to strong capital appreciation and rental yields. The new law empowers investors to tap into these benefits through professionally managed funds that capitalise on the city’s expanding real estate market.
5. Facilitation of Foreign Investment
Building on Dubai’s long-standing foreign ownership policies, the new funds law further simplifies the process for international investors to participate in the property sector. This aligns with Dubai’s vision to attract global capital and strengthen its position in the international investment landscape.
How Will Dubai's New Real Estate Funds Law Benefit Investors?
Dubai, one of the world's fastest-growing cities, has a thriving economy and an unrivalled property portfolio. Along with its luxury appeal, the Dubai real estate market also provides a higher return on investment (ROI) on properties than other major international cities, making it a popular choice among global investors.
The numbers behind that appeal have rarely been larger. According to the Dubai Land Department¹, the emirate's real estate market recorded over 270,000 transactions worth AED 917 billion (USD 249.7 billion) in 2025, a 20 percent year-on-year increase that set a new historic milestone for the sector.
According to the Dubai Land Department¹, the investor base expanded to approximately 193,100 participants in 2025, including 129,600 entering the market for the first time, growth that directly increases the relevance of pooled investment vehicles like real estate funds for those seeking entry without buying physical property outright.
After the long-awaited foreign ownership decree was passed in 2002, allowing non-UAE citizens to own property in Dubai, the city's property market experienced a massive boom. It then enacted a new law in July 2022 to encourage the growth of real estate investment funds in the emirate.
Real estate investment remains one of the best ways to build wealth, and Dubai is now more profitable than ever, attracting investors from all over the world. Continue reading to find out if investing in Dubai property should be your next money move.
This blog will cover:
- Understanding the Property Investment Funds Law
- Conditions for Property Acquisition in Areas Not Designated for Foreign Ownership
- Fees for Property Dispositions
- Benefits of the Property Investment Funds Law
- Why Invest in Dubai’s Real Estate Market
- Why Meydan Free Zone
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Understanding the Property Investment Funds Law
A real estate fund is a type of mutual fund that invests primarily in securities issued by publicly traded real estate companies. A real estate investment trust, on the other hand, invests directly in income-producing real estate and is traded like a stock.
On July 19 2022, Dubai's ruler, Sheikh Mohammed bin Rashid Al-Maktoum, enacted a new law to encourage the growth of real estate investment funds in Dubai. According to WAM², the law grants certain privileges to real estate investment funds as part of efforts to position the emirate as a global destination for real estate investment.
According to the Dubai Media Office, Decree No. 22 of 2022 applies to all real estate investment funds that are regulated and licensed by the relevant authorities. The Dubai Land Department (the DLD) has established a new register that grants registered funds specific rights to facilitate their investments in the emirate.
New investor numbers entering Dubai real estate have surged year after year, and the data from the Dubai Land Department shows the market is drawing in a wider, more global pool of capital with every passing year.
Sources: Knight Frank Dubai Residential Market Review Q3 2025; Global Property Guide, UAE Market Analysis 2026
The main difference is that the registration mechanism now allows registered UAE funds to acquire and own real estate assets in areas of Dubai where foreign ownership is restricted. The fund will not be permitted to sell property assets in districts restricted to foreign ownership without first obtaining preliminary approval from the special committee.
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In order to register a fund in the register, you must meet the following requirements:
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As soon as you submit your application, the DLD will use a valuation specialist accredited by the Real Estate Regulatory Agency (RERA) to confirm that the fund meets the requirements. This step improves the overall transparency of the procedure.
As a result, registered property real estate funds will be able to purchase freehold, usufruct, and long-term lease rights in Dubai areas where foreign ownership is prohibited.
Conditions for Property Acquisition in Areas Not Designated for Foreign Ownership
The committee will take the following factors into account for properties located in non-freehold areas:
- The property is worth at least AED 50 million in the market (USD 13.6M).
- The property must have an investment yield that meets DLD standards.
- If the property is granted, it will be in accordance with the terms of Decree No. (25) of 2022.
- Other factors as determined by the DLD.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, introduced a new law in July 2022 with the goal of regulating the use of commercial land in Dubai by granting Musataha to develop property projects. The contract can be extended for up to 50 years.
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Fees for Property Dispositions
The real estate fund's property purchase, sale, usufruct/long-term lease, and waiver of right/benefit of the long-term lease are subject to the DLD fees listed below:
These fees apply only to the disposition of property assets, not the disposition of property shares by fund shareholders.
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Benefits of the Property Investment Funds Law
The move comes as Dubai ramps up efforts to attract foreign investors, with real estate being one of the city's focus sectors.
- The law encourages significant funds to invest in Dubai real estate and opens the UAE market to large capital infusions. The UAE has recently been identified as the preferred destination for millionaires looking to relocate. This initiative will further propel Dubai to the top of the list of wealthy investors.
- In addition, the new law would encourage investors and real estate funds to enter the market while increasing transparency and governance. It will help to regulate Dubai's private development and free zones. As a result, as wealthy individuals flock to Dubai, this legislation opens up new opportunities for personal and professional relocation.
- By removing liquidity and asset management risks, real estate investment trusts should be able to attract 15% more investment while also supporting liquidity and market growth.
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Why Invest in Dubai’s Real Estate Market?
The following are the factors that make Dubai's property market appealing to international investors:
Why Meydan Free Zone?
Meydan Free Zone is a thriving, centrally located economic district with one of the region's most prestigious business addresses.
We provide our clients with a variety of innovative investment and lifestyle benefits in a safe, regulated environment that promotes productivity. And we can assist you in joining them as well. Our knowledgeable team can help you through the entire company formation process, from registering your company name to managing your LLC license and visa applications. Speak to us today.
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Citation
¹ Dubai Land Department, "Dubai's Real Estate Market Records New Historic Milestone with Transactions Exceeding AED 917 billion (USD 249.7 bn) in 2025," via Public Debt Management Office, January 2026.
² Dubai Media Office, "Mohammed bin Rashid issues Decree No. 22 of 2022, introducing incentives for property investment funds in Dubai," WAM (Emirates News Agency), July 2022.
³ Global Property Guide, "United Arab Emirates Residential Property Market Analysis."
⁴ Tax Foundation, "International Tax Competitiveness Index."
⁵ Global Finance Magazine, "World's Safest Countries 2021."
⁶ Gallup, "2019 Global Law and Order Report."
