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What is true and what is not: things people hear about buying in Dubai

Last updated: 30.09.2026

Many people who consider buying in Dubai get stuck on the same questions: what happens to my money, who protects my rights, and what happens if there is a dispute. Some of what you hear is wrong, and some of it is only partly true. I have gathered the facts here, with a source for each one.

"You can lose the property or the money"

What you hear: a foreigner buying in Dubai is exposed to confiscation, fraud or losing the money in an off-plan project.

What is true:

  • Full ownership in your name. In designated freehold areas, foreign buyers buy with full ownership and are registered as owners with the Dubai Land Department (DLD). On handover, a title deed is issued in your name.
  • The money is held in escrow. Under Dubai Law No. 8 of 2007, every off-plan project has its own escrow account at a bank, and buyer payments go into it. The developer draws from it according to actual construction progress.
  • 5% is held back. According to the DLD, 5% of the escrow funds are retained for one year after completion, as a guarantee for fixing defects.
  • Oversight. The DLD registers projects and transactions, and RERA publishes monitoring reports on construction progress. You can check any project yourself in the official app (see "How to check a project").
  • Golden visa. Owners of property worth at least AED 2 million can apply for a renewable 10-year residence visa, and can sponsor their spouse and children.

Worth knowing: these protections apply to registered projects in Dubai. In other emirates, such as Ras Al Khaimah, the rules and authorities are different.

"Foreigners are subject to Sharia law"

What you hear: in a dispute, an inheritance or a family matter, a foreigner will be judged under Sharia law.

What is true:

  • Inheritance, wills and family. Since 1 February 2023, a federal law (Federal Decree-Law No. 41 of 2022) governs inheritance, wills, marriage and divorce for non-Muslim residents under civil rules, not Sharia. You can also register a will stating that the law of your home country applies.
  • Property disputes. A dispute over property in Dubai is heard by the Dubai Courts, and a rental dispute by the DLD Rental Disputes Center. The DIFC Courts, which follow English common law, only hear matters concerning property inside the Dubai International Financial Centre.

Worth knowing: this is general information. For a will or a legal dispute, you need a lawyer.

"The currency is unstable and taxes will eat everything"

What you hear: the dirham could collapse, and tax in Dubai is heavy.

What is true:

  • A fixed rate. The dirham has been pegged to the US dollar at a fixed rate of AED 3.6725 per dollar since 1997, and the UAE Central Bank maintains it.
  • The UAE does not levy income tax on individuals. There is 5% VAT on goods and services.

Worth knowing: you may still need to report rental income and gains from a sale in your country of residence (see "Do I need to report the property in my country of residence?"). The rate is fixed against the dollar, not against your home currency, so changes in that exchange rate still affect you.

Personal safety

What you hear: Dubai is dangerous for Israelis and hostile to Jews.

What is true:

  • A city of foreigners. About 90% of Dubai residents are not UAE citizens.
  • A law against hatred. Federal Decree-Law No. 2 of 2015 prohibits incitement, discrimination and hate speech based on religion, origin or race, with prison terms and fines.
  • Jewish life. Dubai has synagogues, kosher restaurants and a Jewish community centre. In Abu Dhabi, the Abrahamic Family House, with a mosque, a church and a synagogue, opened in 2023.

Worth knowing: for Israeli citizens, Israel's National Security Council publishes a level 3 travel warning for the UAE, recommending avoiding non-essential travel. According to its update of 17.05.2026, terrorist activity there poses a real risk to Israelis. Before any trip, check the current warning on the Council's website. U810 guides investors remotely, so most stages of a purchase can go ahead without travelling.

Sources

This information is general and correct as of the update date. It is not a substitute for legal advice, tax advice or a review of a specific project and contract.

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