Offshore firms need Jafz NOC for freehold title

Offshore companies will not be able to register freehold properties in the Land Department of Dubai unless they are registered with Jebel Ali Free Zone Authority (Jafza), Emirates 24|7 can reveal.

The new rules will be implemented from next year, with the Land Department now continuing to issue title deeds for offshore companies who have proper documentation, people familiar with the matter said.

Dubai-based Hadef and Partners have confirmed that titles to freehold properties will not be registered at the Land Department unless a "no-objection certificate" is procured from Jafza. However, in its property update, it said the department has started implementing a new policy effective October 26.

According to sources, the move is aimed to help the Land Department keep updated information on such offshore companies and their shareholding pattern. The new rules will make it easy for the department to interact with the property owners. The source confirmed that the companies will not fall under the Dubai legal jurisdiction and will enjoy benefits of the free zone.

Besides, companies, registered in other free zones across the emirate, too will be required to register with Jafza if they intend to make any property purchase in Dubai. Existing offshore companies in Dubai will also have to register with Jafza for making any new purchases.

"Jafza has confirmed that setting up a JAFZ offshore entity is now a mandatory pre-requisite to purchasing freehold property in Dubai through a company and only upon JAFZ issuing a no-objection certificate will the land department consider registering title. Shareholders of such JAFZ entity could be individuals or local or foreign entities," Hadef and Partners said.

In March, Emirates 24|7 had reported that the Land Department will recommence registration of titles for freehold properties in the names of foreign offshore companies after stopping it briefly.

Bianca Gracias, an associate in the real estate team at Hadef & Partners, said: "The department is not registering titles to freehold properties in the name of foreign offshore companies. But officials at the department have confirmed they are accepting registration of titles in personal names and firms located in the UAE including UAE offshore companies, provided the shareholders are individuals and not foreign offshore companies."

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