Foreign nationals who own property in Dubai will no longer be allowed to sell real estate through a power of attorney or use third-party bank accounts. A new regulation that came into effect this week mandates that all real estate transactions must be carried out using the owner’s personal bank account, registered under the same name as that on the Emirates ID associated with the property.
The directive, issued by Dubai authorities, applies to both buyers and sellers. Banks have been instructed not to accept cheques issued under powers of attorney, a practice that had been widely used by non-resident investors to facilitate property transactions remotely.
As per the updated rule, the name on the property deed, Emirates ID, and bank account must match. In case of discrepancies, the sale will be considered invalid. The new rule also bars submission of transaction documents under third-party names, even with legal authorisation. Power of attorney will no longer be accepted in any form for executing property sales, effectively curbing the use of proxy representatives.
Previously, property owners, especially those residing abroad, frequently appointed relatives, friends, or agents to handle sale procedures through legally executed PoAs. Cheques issued in the name of such attorneys were routinely accepted by banks. That provision has now been withdrawn.
The Dubai government maintains that the revised guidelines aim to bring more transparency and accountability to the real estate sector. However, industry insiders suggest that the move could also be targeted at checking benami-style transactions — where properties are bought or sold in someone else’s name — and potentially tightening control over capital flows and ownership trails.
By enforcing stricter KYC compliance and insisting on name uniformity across legal and financial documents, the new system is expected to make it more difficult for individuals to route deals through undisclosed parties or shell entities.
For real estate investors, particularly from South Asia and Europe, the rule could complicate existing arrangements. Those who do not maintain active Emirates IDs or local bank accounts in Dubai may be forced to revisit how they structure ownership and transaction models going forward.
Legal experts point out that unless transaction documents clearly identify the same individual across all levels of verification, the Dubai Land Department will not register the sale. It also puts the onus on foreign owners to ensure their financial dealings and supporting paperwork are fully compliant.
