United Arab Emirates: 16/03/2006
Freehold property buyers do not get automatic right to work in Dubai
By Jay B. Hilotin, Staff Reporter - Gulf News
Dubai: Buying freehold property does not give investors or owners a permanent residence visa or an automatic right to work in Dubai.
This was reiterated yesterday by Brigadier Saeed Mattar Bin Bleilah following the announcement of the new property law allowing expatriates to own property on a freehold basis in Dubai.
"Nothing's changed when it comes to residence permits. There is no permanent residence visa for freehold property investors," Bin Bleilah told Gulf News.
The Dubai Real Estate Registration Law No 7 of 2006, issued on Tuesday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, allows UAE and GCC citizens freehold property anywhere in Dubai and other foreigners to own property on freehold or leasehold basis in designated areas in the emirate.
Bleilah said that while an expatriate freehold property owner comes under the developer's sponsorship, his residence visa does not automatically give him the right to work.
"Real state companies who have promised permanent residence visa to their buyers would create their own problems because they are not allowed to make such promises," he stressed.
But Bleilah explained property owners in Dubai can work under the sponsorship of their employer.
He further explained that there's no agreement between Dubai Lands Department and the Residency department on the issuance of a permanent residence visa for expatriates who buy property here.
Thousands of foreign families who bought properties in Dubai hoping they would be granted permanent residence visa.
Martin Seward-Case, spokesperson of the Interim Steering Committee of the Meadows and Springs owners representing 6,000 residents, said: "Clearly, this would add value to our lifetime investments. More importantly, it underpins the capability of many thousands of us expatriates who chose to make Dubai our permanent residence."
But he said they are also eagerly awaiting the by-laws of the new property law that will identify the freehold areas in Dubai and determine the registration fees and procedures.
"Hopefully, the by-laws would put everything in black and white. We're thrilled of the fact that foreigners are now allowed to own property on a freehold basis. But we hope the by-laws would clear all doubts that non-GGC citizens can actually posses property on a freehold or lease-hold basis and in which areas of Dubai."
Maryam Medina, who owns a property in one of the Emaar projects, said: "The law has been a good start. We need to see the finer details. We hope the registration will be done in an orderly and efficient manner."
"People who have opted to invest their savings here should not be fleeced by exorbitant fees," Medina added.
She said they are also awaiting release of the bylaws that will designate the Emaar communities within the freehold areas applicable to all expatriates.
