Unparalleled Increase in Foreign-Owned Real Estate Firms in Dubai

With Dubai setting monthly records and other emirates like Ras Al Khaimah attracting first-time investors, the country’s property sector is seeing sustained interest from brokers and consultancies, according to a report by Gulf News.

The UAE now allows 100% foreign ownership of real estate brokerages, investment consultancies, and development firms. This has become the standard structure for new entrants, according to Jim Swallow, Commercial Director at Sovereign PPG.

Full foreign ownership in the real estate brokerage, investment consultancy and development is the standard set up now. Most of the demand for a new real estate brokerage business set up is to be 100% foreign-owned.”

This shift began in mid-2021, following changes to the UAE’s Commercial Companies Law, which removed the previous requirement for a 51% local partner in many mainland sectors, including property services. Since then, new license registrations for real estate firms have increased steadily.

While some firms still retain local partnerships—either due to joint ventures or location-specific ownership rules—many have transitioned to full foreign ownership. “Many firms have since opted for share transfer to 100% foreign ownership if the local partner was a silent partner,” Where the local partner was an investor and active in the business, some have opted to be bought out,” Swallow added.

Although Dubai’s property price growth is expected to slow in certain areas, interest in setting up brokerages remains strong. New firms are also eyeing opportunities in Ras Al Khaimah and Abu Dhabi, where real estate activity is expanding. Ras Al Khaimah, in particular, is drawing more first-time European investors, prompting overseas consultancies to establish operations there.