Can a Free Zone Company Own Property in Dubai?

For entrepreneurs and investors, a Free Zone Business Setup in the UAE offers unparalleled benefits, from 100% foreign ownership to full profit repatriation. However, the question of whether a free zone company can own property in Dubai has long presented a major point of confusion. For many years, companies operating from a free zone could only lease their premises, preventing them from building a long-term asset base.

n 2025, policy reforms now allow select free zone companies to directly own freehold property, enabling businesses to build assets and secure a long-term presence in Dubai’s real estate market.

Currently, this applies to certain free zones, like Masdar City, while approvals in other major zones remain limited or under review. This ensures eligible companies can benefit from freehold ownership as UAE regulatory frameworks continue to evolve.

This guide outlines the latest updates, eligibility criteria, and strategic implications for companies considering property ownership under the new framework.

The short answer is a definitive “yes.” Property ownership is no longer an exclusive privilege of mainland companies. A new framework allows qualifying free zone businesses to acquire, hold, and manage property assets, offering a strategic advantage for business stability and growth. This change has transformed the conversation for a Business Setup in Dubai Free Zone, shifting it from one of mere tenancy to one of asset building.

Previous Rules—Historical Restrictions

Historically, free zone companies faced significant limitations regarding property ownership. These entities were often considered “offshore” for real estate purposes. This classification barred them from acquiring property in mainland Dubai’s designated freehold areas.

For those who aren’t aware, “offshore company setups” are businesses registered in a jurisdiction separate from where they primarily operate. In Dubai, this classification limited free zone companies from owning property directly in mainland freehold areas.

Common hurdles included:

• Reliance on a Mainland Structure: A free zone company, which enjoys 100% foreign ownership, often has to establish a separate mainland company with a UAE national partner (holding a 51% stake) just to acquire a property. This complex structure created legal and operational risks and limited direct control.
• Individual Ownership: Many free zone business owners had to register the property under their personal name rather than the company’s name. This practice entangles personal and business assets, creating complications for legal liability and estate planning. It also prevented the company from using the property as a corporate asset for financing.

These restrictions discouraged significant capital investments in real estate and complicated expansion strategies for free zone businesses.

What Has Changed in 2025?

A major policy reform, spearheaded by the Dubai Land Department (DLD), has opened a new era for business and real estate integration. In July 2025, the DLD signed a historic Memorandum of Cooperation (MoC) with Masdar City, allowing companies licensed in that free zone to own freehold property in Dubai’s mainland. This agreement marked a significant turning point, setting a precedent for similar partnerships.

A freehold property gives you complete ownership of the land and any building on it in perpetuity. This is the highest form of ownership and a key factor for long-term investment. The new rules align with Dubai’s Real Estate Strategy 2033 and the broader Dubai Economic Agenda D33, which aim to double the emirate’s economy and attract increased foreign direct investment.

They create a seamless path for free zone companies to invest in the city’s thriving real estate market.

Know more: How to Start a Real Estate Business in Dubai?

Limited Free Zone Approvals

It’s important to note that this opportunity is not available to all free zone companies. Currently, only a few free zones have received DLD approval for freehold property ownership, including:

• Masdar City,
• Jebel Ali Free Zone (JAFZA),
• Dubai International Financial Centre (DIFC),
• Dubai Multi Commodities Centre (DMCC), and
• Dubai South,

Companies in other free zones must await future agreements or explore alternative investment options.

Not every free zone company can immediately acquire property. Eligibility depends on the specific free zone where the company is registered and its business activities. The DLD has signed MoCs with several free zones, with more partnerships expected.

Free zones with confirmed agreements allowing property ownership now include:

• Masdar City Free Zone: Licensed entities can own freehold properties in designated Dubai areas under a DLD agreement.

• Jebel Ali Free Zone (JAFZA): Established free zone allowing corporate property ownership for its companies.

• Dubai International Financial Centre (DIFC): Registered entities can own commercial property within DIFC and other approved areas under its independent legal system.

• Dubai Multi Commodities Centre (DMCC): DMCC companies can acquire property, often requiring a real estate-related license.

• Dubai South: Companies can own property within designated commercial and residential zones.

Key Eligibility Criteria:

A company must satisfy a few core requirements to qualify for property ownership:

• Active Trade Licence: The company must have a valid trade licence from an approved free zone.

• Aligned Business Activity: The licensed business activity must match the intended property use (e.g., a logistics company buying a warehouse, not a villa).

• Compliance: The company must fulfill all regulatory and documentation requirements from the free zone authority and Dubai Land Department.

Free zone companies can generally acquire two main types of properties:

• Freehold Properties: Grants full and perpetual ownership of land and buildings; now available to more free zone companies in specific areas.

• Leasehold Properties: Provides long-term usage rights (up to 99 years) while the land remains owned by the original freeholder.

• Designated Areas: Companies can only acquire property in DLD-approved freehold zones, such as Business Bay, Jumeirah Lake Towers (JLT), and parts of Dubai Marina.

Owning property in Dubai as a Free Zone company is no longer a complex or uncertain process. The process for free zone companies has been streamlined by the DLD in coordination with free zone authorities, ensuring compliance while making ownership accessible. Instead of dealing with fragmented approvals, companies now follow a clear, step-by-step framework

Here are the key steps:

1. Confirm Eligibility: Verify with the free zone authority that the company and the target property are eligible for freehold ownership.

2. Select Property: Choose the property and agree on the purchase price with the seller.

3. Obtain No Objection Certificate (NOC): Request an NOC from the master developer confirming no outstanding dues.

4. Submit Documents: Provide all required documents via the DLD’s digital platform or a registered trustee office.

5. Legal Review & Payment: The DLD reviews the documents, a sales agreement is signed, and a deposit (usually 10%) is paid.

6. Title Registration: After completing legal checks and paying fees (including the 4% DLD transfer fee), the DLD issues the title deed in the company’s name.

Required Documentation

To complete the property purchase, here are the key documents required for free zone companies:

• Valid company trade licence
• Memorandum of Association (MoA) and Articles of Association (AoA)
• Board resolution authorizing the property purchase and appointing a representative
• Passport copies and Emirates IDs of the authorized signatory and all shareholders
• Eligibility confirmation letter from the free zone authority
• NOC from the master developer
• Certificate of Incumbency or Good Standing (if applicable)
• Specimen signature of the authorized signatory
• VAT registration certificate (if the company is VAT-registered)

Owning property as a free zone company offers a wealth of strategic benefits, but it also comes with important considerations.

• Build Equity: Owning property adds a valuable asset to the company’s balance sheet, strengthening its financial position.

• Business Stability: Secures a long-term base, reducing risks from rent hikes or lease non-renewals.

• Financing Leverage: Owned property can be used as collateral to obtain credit or investment for expansion.

• Brand Credibility: A physical office enhances reputation and trust with clients and partners.

• Tax Efficiency: The property may qualify under UAE Corporate Tax Law, potentially benefiting from a 0% corporate tax rate on income under specific conditions.

Considerations

• Limited Scope: Not all free zones are eligible, and ownership is limited to designated freehold areas. You cannot buy a property in a free zone from a free zone.
• Compliance: Strict adherence to both DLD and free zone regulations is essential to avoid penalties or legal issues.
• Transfer Fees: The purchase involves significant transfer and registration fees, most notably the 4% DLD transfer fee.

The ability for a free zone company to own property in Dubai marks a monumental policy shift. It transforms the business landscape, offering companies a strategic path from tenancy to long-term asset ownership. For entrepreneurs exploring a Freezone Business Setup in the UAE, property ownership is now a tangible, powerful advantage.

This reform signals Dubai’s commitment to creating a more integrated, flexible, and investor-friendly environment for both local and global businesses.