Sharjah relaxes its restrictions on foreign ownership of real estate
H.H the Ruler of Sharjah has issued Law No. 2 of 2022 amending Law No. 5 of 2010 on Real Estate Registration in the Emirate of Sharjah on 31 October 2022. The new Decree amends Articles 4 and 7 of Law No. 5 of 2010 which relates to the Right of Ownership of property in Sharjah. The amendment replaces Article 4 of Law No. 5 of 2010 with the following text:
The right to own real estate in the Emirate is limited to persons who are citizens of UAE and citizens of the Cooperation Council for the Arab States of the Gulf, and as an exception to this, the right of ownership may be granted to others according to the following:
- Ownership with the approval of the Ruler.
- Transferring by inheritance by virtue of an inheritance declaration.
- Transfer by the owner to one of his first-degree relatives in accordance with what is specified in the executive regulations of this law.
- Ownership in real estate development areas and projects in accordance with the regulations set by the Council.
This Decree has added three more exceptions and relaxed the restriction on foreign ownership of real estate in the Emirate of Sharjah which is a great step toward opening the real estate market to foreigners.
Article 7 has been amended and oblige the owners to do the following: - Inform the Real Estate Registration Department of any change in the ownership of the legal person if it will lead to an increase or decrease in the partners’ shares, transfer of ownership, or a change in its legal form or trade name.
- Inform the Real Estate Registration Department if ownership is transferred to persons who are not entitled to own real estate in the Emirate, so the same can be corrected.
We urge all our clients to update their title deeds for properties in Sharjah pursuant to Article 7 of this Decree.
