What Does the New Agreement Between DLD and Masdar City Mean?
Dubai Land Department (DLD) and Masdar City have signed a strategic cooperation agreement that now allows Masdar City free zone companies to purchase freehold property in Dubai—a monumental shift in the UAE real estate framework.
Previously, most free zone companies were restricted from owning property directly. But this update opens the doors to an entirely new class of buyers—green-tech startups, digital enterprises, and international firms operating out of Masdar City.
This move is not just a regulatory update. It aligns closely with the Dubai Economic Agenda D33 and the Real Estate Strategy 2033, aiming to expand investor accessibility and strengthen Dubai’s position as a global investment hub.
Background: Freehold vs Leasehold Property Rights in Dubai
Before diving deeper, it’s essential to understand the difference between freehold and leasehold in Dubai:
Freehold: Grants full ownership of the property and land to the buyer.
Leasehold: Provides the right to use the property for a limited period (up to 99 years), but not ownership of the land.
Historically, foreign companies—including those in free zones—were limited to leasehold purchases unless specific government approvals were granted.
This new policy reshapes that restriction for Masdar City businesses.
Key Benefits for Free Zone Businesses
✅ Access to Premium Locations
Masdar City-licensed firms can now invest in Dubai’s most sought-after freehold zones—think Downtown Dubai, Dubai Marina, Business Bay, and more.
✅ Diversified Investment Options
From luxury villas and apartments to commercial real estate, businesses now have a broader portfolio to choose from.
✅ Simplified Legal Framework
The agreement includes a commitment to:
Fast-track property registration
Digitize verification systems
Offer direct coordination with DLD
Strategic Goals: Dubai Economic Agenda D33 and Real Estate Strategy 2033
This agreement supports Dubai’s D33 Vision, aiming to double the size of the city’s economy over the next decade by fostering a global investment environment.
The Dubai Real Estate Strategy 2033 complements this by promoting:
Transparency in transactions
Investor-friendly policies
Long-term sustainability in real estate growth
Together, these initiatives create an ecosystem where property ownership is no longer exclusive to locals or onshore entities.
The Role of DLD and Masdar City CEOs in the Deal
The agreement was formalized by:
Majid Al Marri, CEO of Real Estate Registration, DLD
Ahmed Baghoum, CEO of Masdar City
Both leaders emphasized their commitment to:
Reducing bureaucratic hurdles
Encouraging innovation through property ownership
Enhancing investor trust in Dubai’s regulatory system
Implementation: What to Expect in Phases
🖥️ Digital Registration Platforms
A centralized platform is being developed for:
Submitting ownership applications
Tracking document status
Real-time legal verification
🧾 Legal and Advisory Support
Businesses will be guided through:
Property laws
Compliance requirements
Ownership conditions
🔍 Monitoring and Transparency Tools
The system will include tools for:
Ownership history tracking
Dispute resolution access
Ownership renewal reminders
Who Stands to Benefit the Most?
🌿 Green-Tech and Digital Startups
Masdar City is a known hub for sustainability-focused and innovation-driven enterprises. These companies now gain access to:
Physical assets for expansion
Staff accommodation solutions
Investor-attractive portfolios
🌍 International Businesses Eyeing Dubai Expansion
Foreign companies seeking a soft landing in the UAE can now do so with full property rights, bypassing the older mainland constraints.
What This Means for Dubai’s Real Estate Market
📈 More Buyers, More Demand
With hundreds of new eligible businesses, the demand for freehold properties will rise—particularly in:
Downtown Dubai
Jumeirah Village Circle
Dubai Silicon Oasis
Business Bay
💼 Boost to Investor Confidence
This signals to global investors that Dubai is open for business—with fewer restrictions, digitized systems, and legal clarity.
Conclusion: A Major Win for Business and Real Estate in Dubai
Allowing Masdar City free zone companies to own freehold properties in Dubai represents a paradigm shift—fueling innovation, investment, and urban development in a way that aligns with the city’s ambitious economic and real estate goals.
It’s a win-win: businesses gain long-term assets and roots in Dubai, while the real estate market welcomes a new influx of credible, forward-thinking investors.
If you’re a business owner in Masdar City, this is your moment.
