The Beginning of Freehold Real Estate in Dubai

In 2006, Dubai formalised modern property registration through Law No. (7) of 2006, and, with Regulation No. (3) of 2006, permitted non-UAE nationals to own real estate in designated freehold areas. This marked the beginning of Jointly Owned Properties (JOPs)—internationally known as commonhold. Master developers acquired land either by purchase or through government grants. They then subdivided and sold plots to sub-developers, or retained land for their own projects. Developers built towers, villas, and mixed-use communities, selling units to investors and homeowners who enjoyed indefinite ownership of their private units, alongside an undivided share of the common areas.

The Rise and Role of Owners’ Associations

With this ownership model came new questions: who manages and pays for the shared spaces? who decides how they are used? The answer was Owners’ Associations, introduced under Law No. (27) of 2007 Concerning Ownership of Jointly Owned Properties in the Emirate of Dubai (This law was repealed in 2019). These not-for-profit bodies had separate legal personality, the capacity to sue and be sued, and the ability to own movable assets. They were responsible for managing, maintaining, and operating the common areas. A widespread misconception was that Owners’ Associations themselves held title to the common areas; in fact, each unit owner owned an undivided share of those areas.

In practice, however, many Owners’ Associations were never fully registered or licensed. This left responsibility diffused between developers, interim boards, and managers—each seeking control without clear accountability. Managers were often left asking daily: who is really in charge—the developer, the interim board, or us?

From Owners’ Associations to Management Companies

Recognising these challenges, the government repealed the 2007 law with Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property. The new law dissolved Owners’ Associations as operating bodies, transferring their functions to RERA-licensed management companies. Interim boards were dissolved, but to protect owner rights, Owners’ Committees—with up to nine members—may now be appointed by the Real Estate Regulatory Agency (RERA) to provide oversight and representation. The new law brought much-needed clarity and accountability to the sector, while rebranding the industry from “Owners’ Association Management” to the more fitting term Community Management.

What Is a Jointly Owned Property?

So, what exactly is a Jointly Owned Property? It is real estate subdivided into units—apartments, villas, offices, or retail shops—intended for separate ownership, with common areas designated for the shared use of owners and occupiers. Not all common areas are the same: some are open to all, some are exclusive to a subset of units, and some, like service rooms, are accessible only to authorised personnel.

It is equally important to understand what is not a JOP. If a building or community is entirely owned by a single individual or entity and leased out, it does not meet the legal requirement of subdivision for separate ownership. Even if communal facilities exist, such properties fall outside the JOP regime. For the sake of clarity in this book, we will refer to these as Privately Owned Properties (POPs)—a practical distinction rather than a statutory classification. JOPs and POPs share many similarities in day-to-day management, but their governance frameworks and legal obligations differ in important ways.