TL;DR
Masdar City companies can now own freehold property in Dubai under a new DLD agreement.- A digital system will handle registrations, with clear legal and administrative guidelines.
- This move aligns with Dubai’s Real Estate Strategy 2033 and aims to attract global investors.
- It complements reforms like the One Freezone Passport and First-Time Home Buyer initiative.
A Policy Shift That Expands Real Estate Ownership
Companies operating within Masdar City’s free zones will now be able to own land and property in Dubai’s designated freehold areas, following a new memorandum of cooperation signed by the Dubai Land Department (DLD) and Masdar City. Until now, free zone companies in the UAE had limited or no rights to directly purchase property in Dubai, a restriction that often required them to go through UAE nationals or mainland-linked structures. The agreement, signed by Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, and Ahmed Baghoum, CEO of Masdar City, aims to facilitate direct ownership rights, increase transparency, and simplify the entire process for eligible companies.DLD’s Al Marri said the initiative “enhances the integration of the real estate ecosystem” and reflects Dubai’s ongoing efforts to build a more open, investor-friendly environment.Masdar City’s chief executive Ahmed Baghoum echoed the sentiment, stating:“By simplifying property registration processes for companies operating within Masdar City’s free zones, we are enabling them to expand their operations seamlessly while contributing to the UAE’s long-term growth.”The DLD further noted that the framework will include:
- Clear eligibility criteria
- Defined legal and administrative procedures
- Direct coordination between DLD and the Free Zone Authority
- A digital system for submitting, tracking, and verifying ownership documents
Why This Matters for Businesses
This change is particularly significant for tech firms, clean energy companies, and innovation-driven businesses already operating out of Masdar City, a hub focused on sustainability and future industries. With the ability to now own physical property in Dubai, these companies gain new options for expansion and operations, without needing to relocate or restructure under mainland jurisdiction. The move is also aligned with long-term national strategies including:
-
Dubai Economic Agenda D33 — which targets sustainable growth and economic diversification - Dubai Real Estate Strategy 2033 — which seeks to boost global investment and regulatory transparency in the property sector
The system is expected to roll out in phases and could serve as a model for extending similar ownership rights to other UAE free zones.
What Are UAE Free Zones, And Why They Matter
Free zones in the UAE are specially designated business zones that allow 100% foreign ownership, offer tax exemptions, and maintain independent regulatory frameworks. These zones are often industry-specific and are designed to attract international investment through simplified procedures and world-class infrastructure. Key benefits of UAE free zones include:
- 100% foreign ownership
- Full repatriation of capital and profits
- No corporate or income tax
- No customs duties
- Fast-track licensing and company setup
- Modern infrastructure and access to global markets
The UAE is home to over 40 multidisciplinary free zones, including more than 30 in Dubai alone. Each is tailored to a sector, such as Dubai Internet City for tech, JAFZA for logistics, or Dubai Design District for fashion and media.
Complementary Reforms: One Freezone Passport and Homeownership Incentives
The DLD-Masdar agreement follows the recent launch of Dubai’s One Freezone Passport, an initiative led by the Dubai Free Zones Council (DFZC) that allows companies to operate across all of Dubai’s free zones using a single business licence. This reduces administrative burden and helps companies expand across zones more quickly, with setup timelines as short as five days. Companies such as Louis Vuitton have already used the passport to operate across DWTC Free Zone and Jebel Ali Free Zone (JAFZA). At the same time, Dubai has launched a First-Time Home Buyer Initiative, aimed at supporting UAE nationals and long-term residents who do not yet own a home. This programme, run in partnership with the Department of Economy and Tourism (DET), offers:
- Priority access to off-plan and existing homes
- Discounted property prices and limited-time offers
- Flexible mortgage options, including lower interest rates and reduced fees
- Faster approval times from partner banks
The DLD expects around 5,000 new investors to enter the market this year through this initiative.
Real Estate Market Signals Continued Growth
Dubai’s property sector has shown sustained momentum in 2025. According to DLD data:
- Over 59,000 new investors entered the market in H1 2025
- Knight Frank reported 51,000 homes sold in Q2 2025, a 22.8% year-on-year increase
- Total sales are on track to exceed 169,000 transactions, surpassing 2024’s record high
These numbers reflect the impact of progressive policies like the Masdar City agreement, the One Freezone Passport, and support initiatives for local buyers, all of which contribute to making Dubai more competitive, more accessible, and more sustainable as a global investment destination.
FAQs:
Q. Can any company in a UAE free zone buy property in Dubai now? No. This applies only to companies licensed in Masdar City’s free zones. Other free zone companies are not yet included under this agreement.Q. What does “freehold property” mean in Dubai? Freehold means the owner has full legal rights over both the property and the land, without time limits or leasehold restrictions.Q. What types of properties can Masdar City companies buy? They can buy property in designated freehold areas in Dubai, as long as they meet the eligibility requirements under the new framework.Q. How can a Masdar City company apply to buy property in Dubai? The process will be managed through a dedicated digital platform developed by the DLD and Masdar City, offering application tracking, verification, and legal guidance.
