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.

In 2025, the landscape has shifted dramatically. Landmark policy reforms and strategic agreements now allow select free zone companies to own freehold property directly, marking a major step for businesses aiming to build assets and establish a long-term presence in Dubai’s fast-growing real estate market.

It is important to note that this change currently applies only to certain free zones, such as Masdar City, while approvals for other major free zones remain limited or under review. This ensures that eligible companies can benefit from freehold ownership while regulatory frameworks continue to evolve across the UAE.   

This blog will unpack the latest updates, eligibility criteria, and strategic implications, offering a clear, accurate, and timely guide for companies exploring property ownership under the evolving 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.

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: The landmark agreement with the DLD allows its licensed entities to own freehold properties in designated areas of Dubai.
• Jebel Ali Free Zone (JAFZA): As one of the oldest and most established free zones, JAFZA has had a long-standing ability to facilitate corporate property ownership.
• Dubai International Financial Centre (DIFC): Dubai International Financial Centre (DIFC): DIFC is an independent financial free zone that operates under its own legal system. Registered entities here can own commercial property within their jurisdiction and in other approved areas.
• Dubai Multi Commodities Centre (DMCC): DMCC has also established a framework for its companies to acquire properties, often requiring a specific real estate-related license.
• Dubai South: Companies in this free zone can own property within its developments, particularly in 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 hold a valid, active trade licence from an approved free zone.
• Aligned Business Activity: The company’s licensed business activity must align with the intended use of the property. For example, a logistics company must purchase a warehouse or a commercial plot, not a residential villa.
• Compliance: The company must meet all regulatory and documentation requirements from both its free zone authority and the Dubai Land Department.

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

• Freehold Properties: This type of ownership grants the company full and perpetual ownership of the land and the building. This is the most sought-after form of ownership and is now available to a wider range of free zone companies in specific areas.
• Leasehold Properties: This is a long-term lease, typically for a period of up to 99 years. The company holds the right to use and occupy the property, but the land remains under the ownership of the original freeholder.

Designated areas are crucial. Free zone companies can only acquire properties in areas that the DLD has approved for corporate ownership. These include prominent freehold locations like Business Bay, Jumeirah Lake Towers (JLT), and parts of Dubai Marina, making these some of the best areas to invest in real estate in the Dubai Free Zone.

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: The company must first verify its eligibility with its free zone authority and confirm that the target property is in an approved freehold area.
2. Select Property: The company chooses a property and agrees on the price with the seller.
3. Obtain a No Objection Certificate (NOC): The company requests an NOC from the master developer, confirming there are no outstanding dues on the property.
4. Submit Documents: The company submits the necessary documents via the DLD’s digital platform or through a registered trustee office.
5. Legal Review & Payment: The DLD reviews the documents, and a sales agreement is signed. The company pays a deposit, typically 10% of the sale price.
6. Title Registration: After all legal checks and fee payments (including the 4% DLD transfer fee), the DLD issues a title deed in the company’s name. This document legally confirms the company as the new owner.

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: A company can build a valuable asset on its balance sheet instead of simply incurring rent as an overhead. This strengthens its financial position.
• Business Stability: The company secures a long-term physical base, eliminating the risk of sudden rent hikes or non-renewal of a lease. This stability is crucial for long-term planning.
• Financing Leverage: A company can use its owned property as collateral to secure credit or investment, fueling its expansion plans.
• Brand Credibility: Owning a physical office or commercial space enhances the company’s reputation with clients and partners, building trust and solidifying its presence.
• Tax Efficiency: Under the UAE’s Corporate Tax Law, the property may be a qualifying asset for a free zone company, potentially benefiting from a 0% corporate tax rate on income derived from it 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.