Dubai’s New Property Sale Rule for Foreigners: UAE Bank Account Required

A major regulatory change for non-resident investors is set to take effect in June 2025, according to the Dubai Land Department. This new law stipulates that in order to receive the sale proceeds, foreign real estate sellers in Dubai must have a personal bank account in the United Arab Emirates in their own name.

The purpose of this modification is to reduce the possibility of fraud and improve transparency in real estate transactions. It will no longer be possible to issue checks in the name of the seller’s attorney or legal representative under a Power of Attorney (PoA). The owner of the property named on the title deed must be paid directly.

Changes in the Use of Power of Attorney in Property Sales

Although foreign investors can still use a formal Power of Attorney to sell their property, they can no longer receive sale proceeds through the agent’s bank account. As Yash Trivedi, CEO of YOUAE Mortgages, stated:

“According to the new directive, banks are only allowed to issue cheques in the name of the official property owner, not the PoA holder.”

Power of Attorney Approval Can Now Be Completed Online

In order to streamline legal processes for foreign property owners, PoA documents can now be issued through Dubai courts and even online platforms like Zoom. The paperwork still needs to go through the UAE’s official verification and legal registration procedures, though.

The New Law’s Objective: Increased Openness and Decreased Risk

Dubai’s continuous efforts to improve transaction security and do away with unofficial payment middlemen are reflected in the new rules. This modification is a component of a larger governance plan to increase openness and confidence in Dubai’s real estate market, which has experienced unheard-of expansion in recent years as a result of more foreign investment.

Increase in Foreigner Real Estate Sales

According to data, non-resident investors’ real estate transactions increased significantly in 2025 when compared to the year before. In order to preserve market stability and safeguard the interests of all stakeholders, the Dubai government is thus attempting to fortify its regulatory framework and create more transparent legal processes.

conclusion

In order to sell real estate in Dubai while living outside of the United Arab Emirates, investors must now open a personal bank account in the nation in their own name. The proceeds of the sale may only be given to the legal owner, even though the Power of Attorney may still be used. Before starting the sale process, sellers should make sure all documents fully comply with the new regulations to prevent delays or legal issues.

Source: https://gulfnews.com