Whereas the principles of buying a home are the same in the UAE as in the UK, property law, and its local interpretation, varies dramatically from the UK and even between each Emirate.

Property law, like any law, is also a dynamic area; minor (and sometimes major) changes are constantly taking place, even in the most mature of property markets. In the case of Dubai and the UAE, property law is very young and still taking its long-term shape, although the key elements are straightforward to understand.

We would recommend that you take the advice of a legal expert. Appoint a reputable legal firm to assist you with the contractual elements of the purchase and consider asking for help from an accredited financial advisor to guide you through the maze of financing your purchase.

AT A GLANCE

Freehold ownership of property legalised.

UAE Nationals: Freehold ownership and 99-year lease anywhere in Dubai.

GCC Nationals: Freehold ownership and 99-year lease anywhere in Dubai.

Non-GCC expatriates: Freehold ownership and 99-year lease in designated areas.

Freehold home owners: More than 13,000 (7,000 more this year).

Freehold locations: To be announced later.

Property/Title registration: Dubai Lands Department.

Land registration/transfer fees: To be announced shortly (Currently 2%).

Property prices: Expected to go up.

Dubai Chamber of Commerce Director - General Abdul Rahman G. Al Mutaiwee, a highly respected figure in the local business community, has done much to reassure buyers of freehold property in Dubai that what they are doing at least secures their rights.

As Mr. Al Mutaiwee said, 'We do need a law to formalized expatriate freehold ownership of properties. The Federal Government is currently working on the property ownership law'.

For current buyers, he added: 'A fair contract between a property seller and buyer would ensure the rights and privileges of the expatriates owning freehold properties in Dubai. If anyone has any doubts about his rights, he should carefully study the contract'.

The Emaar Properties sale agreement promises 'a clear and unencumbered freehold title to the Lot to the Purchaser, subject only to instruments, easements, rights of way, covenants or agreements with or in favour of a government authority.'

Now Mr. Al Mutaiwee's statement is effectively a declaration from the Dubai Government that it will safeguard the freehold rights of buyers until the federal law is passed. And it should be noted that a federal law can not be passed without the agreement of the Dubai Government.

So do buyers have any reason to worry about the present absence of a federal property law? Should they wait-and-see as some lawyers advise?

In truth if you intend to buy in Dubai then you should be aware that nothing is going to change the fact that buying in the Middle East carries different risks to some alternative locations.

However, Dubai has a long tradition of upholding property rights and has no history of arbitrary confiscation of property. Even one prominent UK based businessman who lost his UAE passport some years ago, still owns and rents out villas in Dubai.

For as a trading centre Dubai recognizes the inviolability of private property, and the only real reason for foreigners not to buy property is if they think that is going to change. That seems highly unlikely. An earthquake in San Francisco is more probable, and yet people continue to buy property there.