To become a real estate developer in Dubai, you need a trade licence that covers real estate development, registration as a developer with RERA, control of the land, and a separate registration and escrow account for each project. Under Dubai's escrow law, buyers' payments for off-plan units must go into a project escrow account at an approved bank, not to the developer directly. The company setup is the easy part; the land, the finance and the project approvals take far longer.
This guide walks through each step, the costs to plan for, and the mistakes that delay new developers. It reflects our understanding as of November 2026. Fees and requirements change, so confirm them with RERA and the Dubai Land Department (DLD) before you commit.
How to Become a Real Estate Developer in Dubai: The Steps
- Set up the company with a trade licence that includes real estate development, usually on the Dubai mainland through the Department of Economy and Tourism. See our guide to opening a mainland company.
- Register as a developer with RERA, through the Trakheesi system. This registration applies to the company as a whole.
- Secure the land, through ownership or another legally recognised arrangement.
- Get design and building approvals from the relevant authorities for the project.
- Register the project with the DLD and open its escrow account at an approved bank.
- Get advertising permits before marketing units.
- Register each sale on Oqood, the DLD's register for off-plan contracts, and collect buyer payments into escrow.
Escrow Accounts: The Rule Every Developer Must Follow
Dubai's escrow law, Law No. 8 of 2007, requires off-plan payments to go into a dedicated escrow account for each project, held at a bank approved for the purpose. Money is released to the developer as construction progresses, rather than being free to spend. Each project needs its own registration and its own escrow account, even when one company runs several projects.
This protects buyers, and it shapes your finance. Because you cannot use buyers' money freely, you need enough equity or bank funding to start building. Plan your cash flow around the release stages before you launch sales. Buyers increasingly check this too; see our sister firm's guide to whether off-plan property is safe in Dubai.
What It Costs to Become a Developer
| Cost | What to expect |
|---|---|
| Company setup | Trade licence, office and visas, as for any mainland company |
| RERA developer registration | Published guides quote from about AED 5,000 to AED 25,000; confirm the current fee |
| Land | Usually the largest cost by far |
| Design and approvals | Architects, engineers and authority fees |
| Project registration and escrow | DLD and bank fees for each project |
| Guarantees | Some projects may require guarantees; confirm with the DLD and your bank |
We have not given a total, because it depends almost entirely on the land and the project. For the company itself, see how much it costs to set up a company in Dubai.
Developer, Broker or Investor: Choose the Right Licence
| You want to | You usually need |
|---|---|
| Build and sell your own projects | A development licence and RERA developer registration |
| Sell other people's property for commission | A brokerage licence and RERA-registered brokers. See starting a real estate brokerage |
| Buy and rent out completed property | Often no development licence at all, depending on the structure |
| Advise developers | A consultancy licence for the right activity |
Getting this wrong can mean redoing the company setup, so decide what you will actually do before choosing activities.
Tax for Real Estate Developers
- Corporate tax: 9% applies to taxable profit above AED 375,000. Developers should plan how profit is recognised over a multi-year project. See our UAE corporate tax guide.
- VAT: the first sale of a new residential property is generally zero-rated, while commercial property is generally subject to 5%. Register for VAT once the threshold applies.
Real estate tax treatment has particular rules, so work with an adviser who knows the sector.
How Long It Takes
The company and RERA registration can often be done in a matter of weeks. Everything after that depends on the project. Securing land, design approvals and project registration commonly take months, and construction itself takes years. Build these stages into your plan before you commit to a launch date, and expect banks to look closely at your funding and experience.
Partnering With a Landowner
Land is often the biggest barrier for a new developer. Some developers partner with a landowner instead of buying outright, for example by sharing units or profits once the project is built. These arrangements can lower the upfront cost, but they need careful legal drafting covering who controls decisions, how money flows through escrow, and what happens if the project is delayed. Take legal advice before agreeing terms.
Mistakes That Delay New Developers
- Marketing before approvals. Selling or advertising without the required registrations and permits can bring penalties.
- Underestimating equity. Escrow rules mean buyers' money cannot fund the start of construction freely.
- Choosing the wrong licence activities, which forces changes later.
- Weak banking preparation. Developers face detailed checks. See UAE corporate bank account opening.
- No plan for delays, which affect release stages and buyer trust.
Set Up Your Development Company
Planning a project in Dubai? We set up the company with the right activities, prepare the banking file and coordinate the registrations, so you can focus on the land and the build. See our real estate services or contact SMS Consulting.
Sources
Project registration and escrow, from the Dubai Land Department. Overviews from Al Tamimi & Company, LY Lawyers and Business Dubai, which differ on some fees. This guide is general information, not legal advice.
Frequently Asked Questions
Set up a company with a real estate development licence, register as a developer with RERA, secure the land, get approvals, and register each project with the DLD with its own escrow account.
Yes, for off-plan sales. Under Law No. 8 of 2007, buyer payments go into a dedicated project escrow account at an approved bank and are released as construction progresses.
Published guides quote from about AED 5,000 to AED 25,000, and the sources disagree. Confirm the current fee on Trakheesi or with RERA.
Foreign ownership of mainland companies has been widely opened up, but land, approvals and finance requirements still apply. Check the rules for your activity and land.
Oqood is the Dubai Land Department's register for off-plan sale contracts. Units are registered there as they are sold.
The first sale of a new residential property is generally zero-rated, while commercial property is generally subject to 5% VAT.