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29 March 2024

Non-freehold property only for UAE, GCC nationals

Published
By Mohammed Al Sadafy

The ownership of property in non-free holding areas in Dubai is limited to UAE nationals and GCC nationals said Dubai Court of Cassation.

The court confirmed this new principle is based on the real estate registration system in the Emirate which provided for in Act No. 7 of 2006.

The court also said that any act or agreement is in contravention of the provisions of the property registration in the Emirate is based on these principles, the Court rejected the appeal of a Pakistani family that had bought a plot and then registered it in the name of an Emirati in circumvention of the law.

The family said in the appeal that they reside in the UAE and have significant investments and they have bought this plot in return of Dh900,000.

They said since there were laws prohibiting foreign ownership and confined it only with the permission of the sovereign powers, they had agreed with an Emirati to register it with the Dubai Land Department in a bid to circumvent the law.

They added that the Emirati citizen who was a friend of theirs (the Pakistani family) had given  a written acknowledgement that the plot belonged to the Pakistani family.

They pointed out that unfortunately the Emirati friend died and his heirs were in dispute with the Pakistani family in regard of the piece of land. Therefore, the Pakistani family filed a case against the heirs of the Emirati gentleman who had passed away.

The Court of first instance dismissed the lawsuit and the plaintiffs (the Pakistani family) appealed the verdict before the Court of appeal, which upheld the judgment of the Court of firstinstance.

Once again the plaintiffs appealed again to the Court of Cassation which issued its verdict mentioned above.

The verdict based on the articles no 7,9,22,24 of the law 7 of 2006 of the real estate registry in the emirate of Dubai.

The Court said the rationale for its rejection of the appeal this text emphasizes the inadmissibility of the person owns real estate without registration in the register.

Also the person can’t register his possessions in the name of another person, the fact that it runs counter to the principle of securing and asserting the ownership, and incompatible with the credibility of the land register.

In its judgment, also the court relied on the text of article 26 of the law on land registry, which provides for the invalidity of an agreement or conduct entered into in order to circumvent the land registry system adopted officially in the Emirate.

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