UAE Property Market: 6 Government Policies Supporting Developer Growth

REAL ESTATE1 month ago

The UAE’s real estate market has long been a pillar of economic diversification, attracting international investors, developers, and residents. In 2025, the country’s leadership continues to implement bold and progressive policies that are actively shaping the real estate landscape—particularly in support of developer growth. From regulatory reforms to foreign ownership rights and sustainability mandates, the UAE government is laying a strong foundation for long-term sectoral expansion.

This article explores six pivotal government policies currently boosting the real estate development ecosystem across Dubai, Abu Dhabi, and the Northern Emirates.

1. 100% Foreign Ownership in Real Estate Companies

In a major policy shift, the UAE now allows 100% foreign ownership of mainland companies, including real estate businesses. This reform, initially rolled out in Dubai and Abu Dhabi and extended across the Emirates, eliminates the need for a local sponsor or Emirati shareholder in many sectors.

This liberalization has directly impacted real estate developers, allowing international firms to:

Launch and fully control development ventures,
Secure investment more easily, and
Repatriate profits with fewer restrictions.

2. Streamlined Project Approvals & Building Permit Reforms

To reduce red tape and speed up project delivery, Dubai and Abu Dhabi have launched integrated digital systems for faster building permits and zoning approvals. Dubai’s “Dubai Building Permit System” allows real estate developers to receive multiple approvals under one window through a unified portal.

In Abu Dhabi, the Abu Dhabi Digital Authority (ADDA) continues to simplify procedures across sectors, including land-use conversions and environmental assessments.

3. Escrow Law & Trust Account Mandate for Buyer Protection

The UAE’s Escrow Law requires developers to deposit buyer funds into an escrow account monitored by the Real Estate Regulatory Authority (RERA). This regulation ensures that:

Payments are used only for the intended project,
Developers maintain financial transparency, and
Investor confidence in off-plan developments remains strong.

Additionally, Dubai’s Project Monitoring Committee ensures that developers meet construction milestones, helping mitigate the risk of project cancellations.

4. Golden Visa Incentives Tied to Real Estate Investment

The UAE’s Golden Visa program, offering 10-year residency for investors, has become a game-changer for property developers. By linking visa eligibility to property investments of AED 2 million or more, developers are now able to:

Offer Golden Visa support as part of their project marketing,
Attract long-term end-users and international buyers, and
Promote lifestyle-oriented investments over speculative flips.

Projects near coastal zones, wellness communities, and mixed-use districts are especially leveraging this visa linkage.

5. Tax Benefits and Free Zone Development Support

Developers operating in designated free zones continue to enjoy corporate tax exemptions and other incentives under the UAE’s new tax regime. While the standard corporate tax rate is 9% starting June 2023, real estate developers in qualifying zones can benefit from:

0% tax on qualifying income,
Customs and import duty exemptions, and
Preferential land leasing terms.

Strategic real estate free zones include:

Dubai South, home to Expo City and logistics parks;
RAKEZ and Sharjah Research Technology Park, promoting mixed-use innovation districts.

6. Mandated Sustainability & Smart Infrastructure Policies

The UAE Green Agenda 2030 and Net Zero 2050 initiative have introduced sustainability requirements for all new developments. In line with these goals, developers must now comply with:

Estidama (Abu Dhabi) and Al Sa’fat (Dubai) green building ratings,
Water and energy efficiency codes,
Smart metering systems and EV infrastructure.

The government also offers incentives—such as FAR (floor area ratio) bonuses, expedited permits, and grants—for green-certified buildings.

Conclusion

The UAE government’s policy approach in 2025 is clearly pro-development, pro-investment, and future-focused. Whether through regulatory innovation, tax incentives, or sustainability mandates, these measures are positioning the real estate sector for smart, responsible growth.

For U.S.-based and global investors, these supportive policies present a compelling case to collaborate with UAE-based developers or invest directly in pre-approved projects. With market transparency and institutional frameworks strengthening, developers in the UAE are more empowered than ever to scale—and deliver world-class communities in return. UAE propety market