New Ownership Structures for Real Property in Dubai

On July 15, 2024, the Dubai International Financial Centre (DIFC) enacted amendments to the Prescribed Company (“PC”) regime under the amended Prescribed Companies Regulations 2024 (“PC Regulations”).

This new regime expands and simplifies the criteria for establishing a PC. According to the PC Regulations, a PC can be formed by any party intending to hold title to or control one or more GCC registrable assets. These assets include properties or property interests that require registration with a GCC authority to establish legal ownership, secure rights, or claims, thereby providing public notice of such interest.

To facilitate this transition, the DIFC has granted a six-month grace period for forming a PC before acquiring real estate. The period commences upon PC formation and extends until the shareholder(s) of the PC present documentation to the DIFC indicating acquisition of the asset. This streamlined process enables efficient PC formation with a registered address in the DIFC provided by a licensed Corporate Service Provider (CSP).

While Foundations and trusts exist within the United Arab Emirates as vehicles for holding real property, the new PC regime offers a more convenient and flexible option for holding real estate assets in the GCC. PCs can benefit from the DIFC’s common law framework, low fees, and streamlined process, as well as the option to use a licensed CSP as their registered office in the DIFC.

How can we help?

If you are interested in exploring this option or have any questions about the proposed changes to the Regulations, please do not hesitate to contact us.

For further inquiries, please contact Izabella Szadkowska or Nima Michael Moshggoo.