Free Zone Companies Can Now Own Real Estate in Dubai: Why This Could Change Hospitality Forever

A Legal Change That Feels Like a Business Invitation

Sometimes, a law changes and it feels distant — something for lawyers and policymakers to worry about. But sometimes, a law changes and you can almost hear the doors unlocking.

That’s what just happened in Dubai.

For the first time, companies registered in certain free zones can directly own property in the city. It’s a small sentence with huge consequences. For years, if you were a hotel operator or developer based in a free zone, you had to set up extra companies, work through local partners, or jump through layers of paperwork just to hold a title deed. It worked, but it wasn’t simple.

Now, that barrier is gone. If your company is in one of those approved free zones, you can own your property directly. No extra hoops. No complicated detours.

What It Means for Hotels and Resorts

If you’re in hospitality, you know the industry lives and dies by control and consistency. The look of the lobby, the quality of the bedsheets, the way the brand interacts with guests — it all matters.

Under the old rules, splitting ownership and operations between different legal entities often created friction. Now, a hotel brand can own, operate, and manage under the same free zone entity. That means fewer people in the middle, faster decisions, and better alignment between the brand promise and the guest experience.

Financing also gets easier. Investors and banks like clean, simple ownership structures. The clearer the title and the fewer the intermediaries, the faster the capital flows. This could accelerate everything from new branded residence projects to full-scale mixed-use resorts.

Yes, There’s Fine Print

Of course, this isn’t a free-for-all. Developers still need to play by the rules — zoning laws, land use approvals, and the right trade licenses are still non-negotiable.

Contracts may also need a rewrite. If you’ve got management agreements, leases, or investor deals, they now have to reflect the fact that your free zone entity holds the title. And if you’re selling off-plan units, Dubai Land Department’s escrow and mortgage requirements still apply.

The Upside — and the Caution

This could be the push that brings more global brands to Dubai. Imagine more hotels integrating residential, retail, and entertainment under one brand umbrella — the kind of lifestyle destinations that keep guests and residents loyal for years.

But it’s also a moment to stay smart. More players in the market means more competition. In the luxury segment especially, oversupply is a real risk. Growth is good, but only if it’s sustainable.

It’s Not Just Dubai — It’s the GCC Mindset

Dubai isn’t making this move in isolation. Across the Gulf, governments are rethinking how they attract investment. Saudi Arabia’s Vision 2030 has turned hospitality into a national priority, Sharjah is opening up more areas for foreign ownership, and even smaller markets like Bahrain and Oman are creating more investor-friendly frameworks.

It’s a race — but a race in the right direction.

Why This Feels Like the Start of Something

This isn’t just about who can hold a title deed. It’s about removing friction so ideas can move faster from paper to reality.

For hotel operators, it’s a chance to dream bigger — to design properties where brand, ownership, and operations are perfectly in sync. For investors, it’s a cleaner, safer structure to put money into. For Dubai, it’s a signal to the world: we want your projects, and we’ll make it easier for you to build them here.

The opportunity is here. The question is, who’s going to grab it first?

Mohamed Darwish

Founder & Legal Consultant, Darwish Legal Consultants Hospitality & Real Estate Law Specialist | Author | Host of The Legal Lobby Podcast 📚 Author of The Art of Mediation: The Key to Resolving Disputes in the Hospitality Industry and AI for Lawyers: A Practical Guide