Dubai’s real estate sector is experiencing unprecedented growth, achieving record sales in the first half of 2024. In response to this and to further encourage investor interest, Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, enacted Decree No. 22 of 2022. This law supports the establishment of real estate funds, enhances regulation, increases transparency, and ultimately aims to boost investment in the real estate sector. This article highlights the key aspects, benefits, and potential impacts of this legislative change on the local real estate market. Now, two years after its enactment, the first effects of the new legislation can be discussed.

Overview of Dubai Decree No. 22/2022
According to the Dubai Media Office, Decree No. 22 of 2022 applies to all real estate funds regulated and licensed by relevant institutions such as the Dubai International Financial Center (DIFC) and the Securities and Commodities Authority. Under this law, a new register has been established at the Dubai Land Department (DLD), allowing registered funds to acquire certain property rights to simplify their investments in the Emirate.
A significant change introduced by the decree is that registered real estate funds can now acquire and own properties in areas previously restricted for foreign ownership, although sales in these zones require prior approval.
Registration Process and Conditions
To be included in the register, funds must meet certain criteria:
- A valid license from the relevant authority.
- Real estate assets valued at a minimum of AED 180 million (approximately USD 49 million).
- No suspension of the fund from trading on the Dubai financial markets.
- Payment of a registration fee of AED 10,000 (about USD 2,700) to the Dubai Economy and Tourism Department (DED).
Once submitted, applications are reviewed by the DLD and an appraiser recognized by the Real Estate Regulatory Agency (RERA), which increases transparency and allows registered funds to invest in areas previously restricted for foreign ownership.
Fee Structure and Property Acquisition
Specific DLD fees apply to transactions conducted by real estate funds. These fees are currently under revision, so we recommend directly contacting the DLD for details.
Benefits and Impact of the New Legislation
The new decree is attracting numerous real estate funds to Dubai, promoting the development of untapped areas, and opening the market to retail investors. The legislation is expected to have a multiplier effect on the overall economy by attracting foreign capital and increasing demand and price levels for local commercial real estate. Additionally, an exemption from corporate tax, effective from 2024, can be applied for, further enhancing the attractiveness for funds.
Sheikh Mohammed bin Rashid’s initiative to promote real estate funds is a decisive step towards the further development and maturation of Dubai’s real estate sector, offering new opportunities for both institutional and private investors.