Sharjah Opens 100‑Year Leasehold to All Nationalities: Key Legal Insights for Industrial‑Land Investors
What Happened?
On 10 April 2025, ASAS Real Estate (the property arm of Sharjah Islamic Bank) announced that all non‑Arab nationalities with valid UAE residency can now acquire a 100‑year leasehold interest in plots at the Al Saja’a Industrial Land project. Arab nationals continue to enjoy the option of outright freehold ownership. khaleejtimes
How Does a 100‑Year Leasehold Work in Sharjah?
Sharjah’s property framework already permits foreign investors to hold usufruct/leasehold rights of up to 100 years in designated areas (Executive Council Resolution No. 26 of 2014, reinforced by subsequent amendments in 2022). tamimilexology
Under a leasehold/usufruct title:
- You enjoy full rights to use, develop, mortgage, and sub‑lease the land for the agreed term.
- The underlying freehold remains with the original owner (in this case, ASAS Real Estate).
- All rights must be registered at the Sharjah Real Estate Registration Department (SRERD) to be enforceable.
Why Al Saja’a Industrial Land Matters
| Feature | Details |
|---|---|
| Plot sizes | 9,500 – 30,000 sq ft |
| Price | From AED 1,045,000 |
| Payment plan | Up to 24 months; Sharia‑compliant financing via SIB |
| Zoning | Industrial/logistics; G + Mezzanine warehouses permitted; on‑site labour accommodation allowed (subject to regulation) |
These terms position Al Saja’a as a cost‑effective alternative to Dubai’s industrial zones, while benefiting from Sharjah’s lower setup costs and proximity to Emirates Road (E611) and the ports. khaleejtimes
Legal Checklist for Prospective Investors
- Title Due Diligence – Verify that the master developer’s freehold is properly registered and that the 100‑year usufruct is clearly carved out.
- SPV Structuring – Consider holding the leasehold through a UAE on‑shore LLC or free‑zone entity to ring‑fence liability and ease future transfers.
- Regulatory Approvals – Obtain industrial licences from Sharjah Economic Development Department (SEDD) and building permits from Sharjah Municipality.
- SRERD Registration – Register the usufruct agreement; pay the 2% registration fee (shared equally by buyer and seller unless negotiated otherwise).
- Financing & Security – If using bank finance, ensure the mortgage is registered against the usufruct right (per SRERD guidelines).
- Exit Strategy – Draft clear provisions for assignment or sub‑leasing; note that SRERD consent is usually required for transfers.
Tax & Compliance Angle
- Corporate Tax (9%) applies to UAE‑sourced income exceeding the AED 375k threshold; structuring through a free‑zone with a qualifying activity may unlock 0% CT relief (subject to Economic Substance tests).
- VAT (5%) generally does not apply to bare‑land leases; however, development services and utilities are taxable.
- Environmental & HSE approvals are mandatory for manufacturing or storage of regulated materials.
Strategic Takeaways
- Long‑term certainty – A 100‑year term rivals freehold in practical value for most corporate timelines.
- Portfolio diversification – Industrial land offers hedge against the volatility seen in residential markets.
- Sharjah’s policy shift signals wider liberalisation; future freehold zones for foreigners may emerge, enhancing exit values.
How SAT Law Firm Can Help
- Pre‑acquisition due diligence & contract drafting (English & Arabic)
- SPV formation and regulatory licensing
- Financing & security documentation (conventional or Islamic)
- Construction, EPC & lease agreements for warehouses or logistics facilities
- Dispute resolution & arbitration under DIAC or ADGM rules
Thinking of securing an industrial foothold in Sharjah?
Contact our SAT Law Firm team for a complimentary initial consultation at
https://satlawfirm.ae/en/contact-us
