Unlike other states of UAE, Dubai is relying less on oil and petroleum due to less oil reserves in the state. These less resources proved blessing in disguise for Dubai as it started other projects like tourism, business, infrastructure etc. for progress of the state. Business friendly policies by Dubai govt. and political stability in the state and in whole of UAE allowed Dubai to become world leader in business and job opportunities. Entrepreneurs and job seekers from all around the world are turning their attention to Dubai for mutual benefit of Dubai and their own self.
One of the most thriving businesses in Dubai is real estate business. There is a race in Gulf States for skyscraper structures and no doubt Dubai is ahead in this race. It is evident from the high skyscrapers in Dubai including world’s highest building Burj al Khalifa along with Marina 101, world’s tallest residential building, Princess Tower, Burj al Arab and several others. In order to promote tourism in the state, the UAE govt. is also giving importance to unique structures like man-made artificial islands. Palm Jumeirah is one such example while construction is underway for other such islands like Palm Jebel Ali, Deira Island, The World, Maritime City and others.
Dubai is no way going back on these structures. The construction on several such high and unique structures is underway and several plans for such structures have been approved. Apart from that, more and more foreigners are residing in Dubai and others are planning to purchase or hire residential buildings in Dubai. All these factors are clearly indicating that there are several opportunities for investment in real estate business in Dubai and these opportunities will further increase in the near future.
Process For Setting Up Real Estate Business in UAE:
An important thing to consider before starting the real estate business in the mainland UAE is that real estate companies can only be owned by a qualified UAE national and one person can only have a single license of such business. It means that you have to contact a local person without having any other real estate license on his/her name. This local person will have 51% shares of the company but you can agree upon different profit share with the local Emirati. But such condition doesn’t apply in case you are establishing your business in a free zone or becoming a part of a foreign company.
Before starting a real estate business in Dubai, one must do some market research. You can easily do this research by talking to an expert in the regional business, reading local newspapers or attending a conference on local industry. After knowing about the opportunities for real estate business in UAE, it will be easier for you to decide whether it is appropriate for you to establish such type of business in the UAE mainland or one of the free zones or you should work as a broker for an already established real estate company in Dubai.
The first step to for setting up of a real estate company is registration of trade name for your real estate business. This trade name should be related with the type of your business. It means you can use the terms of ‘developer, real estate or broker’ if you are using such activities in your business.
The approval process will start after obtaining certificate of trade name. After taking initial approval, you can get advance registration of RERA in Dubai. You can have this registration after completing real estate course of 20 hours with cost of AED 12,020 in case of a post-secondary degree. Otherwise, the duration of this course is 49 hours and it will cost AED 12,020. It has been made compulsory by Dubai govt. so that the entrepreneur must know basics about his/her business.
After getting RERA certificate, you will sign the MOA “Notary Public” after which the authority will issue license for establishment of the company.
But only setting up a real estate company in Dubai is not enough as there are number of already existed real estate companies in the emirate of Dubai and you have to compete against them to get maximum benefit after setting up your own company. You have to promote your company through marketing and advertisement. You can promote your business through business cards, website for real estate business etc. Through this marketing strategy, you can easily promote your business and expect it to flourish due to business friendly opportunities available in Dubai.
Excellent and helpful post.