Investors purchase freehold property in Dubai through offshore company now need to set up an offshore firm with Jebel Ali Free Zone (Jafza).

Investors looking to purchase a freehold property in Dubai through a company now need to set up an offshore firm with Jebel Ali Free Zone (Jafza). Titles to freehold properties will not be registered unless a no-objection certificate (NoC) is procured from the free zone.

This follows the signing of a recent deal between the Dubai Land Department (DLD) and the free zone in a bid to maintain a more concise register of land and property transactions. This new policy, however, does not affect the ownership of properties registered in the name of local entities that were issued title deeds prior to October 26, 2010.

Improving transparency

According to Michael Lunjevich, partner and head of real estate at law firm Hadef & Partners, "It's for the Land Department to have some visibility on who the shareholders and directors are in an offshore company. It's very important to know who the beneficial owners are, and the transfer of property shouldn't be allowed off the Register."

While offshore companies were popular among expatriates, particularly the Muslim community, in Dubai owing to uncertainty over inheritance issues in the region, those established in offshore jurisdictions such as the British Virgin Islands (BVI), the Isle of Man and the Cayman Islands also legally avoid having to pay certain types of taxation on profits and income. "Some international investors don't want assets in their personal name since they could get sued internationally for assets you own in a different country. Transferring it from your name will minimise that risk," explains Brent Baldwin, associate at the law firm.

Despite the fact that the Jafza deal is expected to emphasise information access to shareholder details, investors can still ensure that the asset cannot be traced to their name.

"You may still have situations where the Jafza company is owned by an offshore trust or a nominee company. If you structure your investments well, you can ensure that nothing traces back to you. But, it will be more difficult to sell the structure onto someone else. You will have to transfer two companies and many companies may not be willing to take up collective liabilities," suggests Lunjevich.

Stringent reporting norms

Industry experts believe the DLD could make the reporting requirements for existing foreign offshore firms more stringent. "They might introduce more stringent reporting requirements on those grandfather acquisitions. The Land Department may sometimes enable free transition from a foreign offshore company to a local offshore firm, without charging a fee," Lunjevich says.

The nature of offshore firms not needing to disclose details of the beneficiary has lent itself to fraud and money laundering in many instances. "There have been examples where offshore companies, mostly BVIs, collected money for developments, did not put it into an escrow account and the directors disappeared. Whether it was done fraudulently or they were victims of circumstances, I wouldn't want to speculate," Lunjevich adds.

Residency departments will not renew the residence visas of expatriates if they are wanted by police for financial obligations

Residency departments will not renew the residence visas of expatriates if they are wanted by police for financial obligations, Interior Ministry officials said

Residency departments will not renew the residence visas of expatriates if they are wanted by police for financial obligations, Interior Ministry officials said.Residency visas of expatriates, their relatives and their employees will be renewed only after the settlement of the financial disputes.

Several residents told  that their applications to renew their visas were rejected because banks had lodged complaints against them with police, who had issued arrest warrants.Police have instructed residency departments to arrest these expatriates or send them to the authorities.

While this is the rule, Interior Ministry officials said they consider some cases on humanitarian grounds.

Lawyers, however, stressed that the police have no right to ask residency departments to arrest people who have defaulted on bank loans or other financial issues.Residency departments, lawyers said, are administrative units and have no right to arrest or punish people by not renewing their residence visas for such matters.

Major-General Nasser Al Awadi Al Menhali, Assistant Undersecretary in the Ministry of Interior for Naturalisation, Residency and Borders, told  that if banks file a case with police against a person for financial issues, such as delayed payments of loans or bounced cheques and an arrest warrant is out, no transaction is carried out for that person.

He said residency departments do make exceptions.

“We look at the case on humanitarian grounds. We renew the residency visa if the person has a family, wife and children,” he said. “The ministry does not want to increase the number of illegal residents. The residency department does not arrest people if they are involved in bank loans but we ask them to sort the matter out.”

Dr Khalifa Rashid Al Sha’ali, a lawyer and legal expert, told  that when police ask to bar a person from getting his visa, it is meant to pressure him into paying his dues and protect the other party’s rights.‘Illegal pressure’.However, Dr Al Sha’ali said not renewing the person’s residency visa is a kind of punishment or pressure that is illegal and unjustified.

“It is illegal if the residency department does not renew someone’s residence visa if they do not pay their bank loans. There is no article in the law which says residency will not be renewed for not paying banks, for example,” he said.

A businessman told  that this step by the residency department is illogical.

“It punishes the company for an issue that involves the employee. The loan defaulter in turn is punished using a different tool and is made illegal.”

UAE Residency Visa, Labour Card Validity Cut to Two Years

This article describes a major change that happened in January 2011, where the UAE Cabinet officially reduced the validity of the private sector labour card (and consequently the residency visa) from three years to two years.

This change was a significant move at the time, aimed at unifying the visa validity period across different categories and increasing labour market flexibility.

The information is now largely confirmed and standardized under the current legal framework.

Here is the updated status based on the current UAE Labour Law (Federal Decree-Law No. 33 of 2021) and the Unified Visa System (as of 2025):

📅 Private Sector Standard Work Permits Now Uniformly Valid for Two Years

#UAELabourLaw #VisaValidity #TwoYearStandard

The decision made by the UAE Cabinet in 2011 to reduce the validity of private sector labour cards and residency visas from three years to two years is now the standard practice across the majority of the UAE mainland and many Free Zones.

This standardization ensures alignment between the work permit issued by the Ministry of Human Resources and Emiratisation (MoHRE) and the residency visa issued by the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) or the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-D).

Key Provisions Under the Current Law (2025)

Element	Old Rule (Pre-2011)	Current Standard (2025)
Standard Work Permit/Labour Card Validity	3 years (for many professions)	2 years
Standard Employment Residency Visa Validity	3 years	2 years
Standard Employment Contract Type	Unlimited or Fixed-Term (Max 4 years)	Fixed-Term (Maximum 3 years initially)
New Visa Categories	Not applicable	Green Visa (Self-sponsored, 5 years) and Golden Visa (Long-term, 10 years) are now available.

Impact and Rationale (Then and Now)

1. Flexibility (The Cabinet's Aim): As noted by former MoL and ICP officials, the two-year term enhanced flexibility. It allows both employers and employees to re-evaluate the relationship more frequently without incurring heavy costs for contract cancellation, aligning with the current law's focus on labour mobility and simplified termination procedures (with notice).
2. Cost Savings (The Cabinet's Aim): The move was designed to save companies money by preventing them from paying three years of fees when a high percentage of employees cancelled their cards early. While the specific figures from 2009 are outdated, the principle of minimizing financial loss on premature contract termination remains a core benefit of the two-year cycle.
3. Unification: The move successfully unified the duration across most categories, including domestic helpers and general private sector employees, streamlining administrative processes for both MoHRE and ICP.

Notable Exceptions to the Two-Year Standard:

• Golden Visa Holders: Can receive a 10-year residency visa and a corresponding 2-year work permit (renewable).
• Green Visa Holders: Can sponsor themselves for a 5-year residency visa for skilled employees or freelancers.
• Government Sector: Some federal and local government contracts and visas may still be issued for a 3-year term.
• Elderly Employees: Work permits for employees over the age of 60 are typically renewed annually.

The current standard of a two-year validity for the standard work permit and residency visa is fully established in the UAE.

Would you like an overview of the new Green Visa or Golden Visa categories, which offer longer residency periods than the standard two years?

 

Guideline to register Properties in the name of offshore companies in Dubai

Employment Ban in UAE- Frequently asked Questions

1. I have worked with my employer under a fixed contract for a period of two years, but I didn’t completed the period of my labor contract…whereas my employer wants to cancel my labor card with a ban of work for one year in a pretext that I didn’t completed the contract period?

The worker shall be banned from work for one year from the cancellation date if he didn’t complete his fixed period contract…and has ceased working without legal reason…and he shall not have the right to work with other employer during such period.

2. I have worked with an employer with a contract of unlimited period and I didn’t worked for the notice period… shall the employer have the right to put the pan stamp on my passport? Article: 129:

The employer shall have the right to put the pan stamp if the worker didn’t work for the notice period after resignation…or if he worked for some days from the notice period and ceased working after that altogether without reason…however, the worker shall not have the right to work for another employer during that period.

3. Is there any exclusion with regard to the one year ban on the worker if the original employer agreed to cancel the said ban? Article: 130:

The worker may be excluded from the provisions of the two Articles No. 128 and 129 with regard to the ban before joining the other work and this shall be through the approval of Minister of labor based on the application of the original employer.

4. I am employed under a limited period contract for 3 years and I have asked my employer not to renew the same…then who shall pay the costs of the return ticket? Article: 131:

If the worker has completed his limited period contract and if he didn’t want to renew the same…the employer must be obliged to pay his return tickets. And if the worker has joint some other work, then his new employer should be obliged to pay his said return tickets.

5. If I worked under limited or unlimited period contract and submitted my resignation, shall I have the right to ask for return tickets?

If the worker has resigned or terminated his service contract, he should bear the costs of the return tickets.

6. I have completed my labor contract, whereas there is a stipulation in such labor contract showing that my employer should bear the costs of my family return tickets in addition to the baggage shipping costs, have I the right to bound him to the same?

If such stipulation is present in the labor contract, the worker shall have the right to claim for the said costs…

7. As for the return tickets, shall my employer have the right to return me to the capital of my home country or to the place he has already brought me from?  To the place he has already brought you from.41. My employer has cancelled my labor card, and I am now present at the labor camp, but he asked my to leave this accommodation, What is your opinion about this?

The employer shall have the right to ask the worker to leave the accommodation, if he has paid to the worker all his work dues.

8. If a labor compliant has been referred to the court…from when does the period of 30 days for vacation of the accommodation shall start to go into effect?

Article: 131: - The employer shall file a complaint to vacate the worker from the accommodation…, and the 30 days period shall start to be effective commencing from the date in which the employer has deposited the worker’s dues with the Ministry as a trust…, if the worker didn’t vacate the accommodation after this, the concerned authorities should take the necessary action.