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A new standard of confidence for European investors
On June 10, 2025, the European Commission officially announced that the United Arab Emirates (UAE) is no longer on the list of "high-risk third countries" with respect to anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. This move marks a historic moment that not only strengthens the UAE on the global stage, but also directly benefits investors from the Dutch and broader European real estate sector.
Why was the UAE on this list in the first place?
The listing was based in the past on concerns by the Financial Action Task Force (FATF) about poor regulation around money laundering, financial transparency and supervision in high-risk sectors such as real estate, crypto and business services. This classification led to increased vigilance by European banks in transactions with companies or individuals in the UAE. Consider:
- Stricter due diligence in money transfers
- Delayed verification processes
- Higher administrative burden when investing in Dubai real estate
For investors, this meant additional barriers in the form of time, uncertainty and sometimes transaction rejections. With the removal of the list, this will now come to an end.
What has the UAE done to get off this list?
The deregistration is the result of years of structural reforms and is due to a series of strategic measures taken by the UAE:
1. Strengthened legislation
The government made changes to several federal laws, including:
- Mandatory registration of ultimate beneficial owners (UBOs).
- Stricter requirements for real estate agents and real estate transactions
- Sanctions for non-compliance with compliance requirements
2. goAML Platform
The introduction of the Central Bank's goAML platform, mandatory for brokers, accountants, notaries and others, has led to improved reporting of suspicious transactions.
3. Increased monitoring and enforcement
Regulators in the UAE have imposed millions in fines on entities that failed to comply - a clear message that regulation is not a paper tiger.
4. International cooperation
The UAE worked closely with institutions such as the FATF and European authorities to undergo audits, report progress and implement recommendations.
What does this mean concretely for Dutch investors?
Faster transactions and less compliance burden
European banks' enhanced due diligence (EDD) requirements on transfers to Dubai are largely coming to an end. That means:
- Fewer bank queries
- Shorter lead times
- Lower administrative costs
Increased trust from banks and advisors
The negative reputation surrounding Dubai as a "gray area" is increasingly disappearing. This facilitates financing, investment underwriting, and cooperation from European financial advisors.
Increase in value and international interest
Professional investors and institutions see this delisting as confirmation of the reliability of the UAE market. International capital flow towards Dubai is expected to increase significantly.
And what does this mean for the real estate market in Dubai?
According to the Dubai Land Department, real estate transactions grew 20% by 2024 to a record AED 761 billion. This trend is expected to continue - especially as legal barriers to European investors disappear.
With growing confidence:
- Will demand for luxury and middle-class housing rise
- Will improve liquidity in the market
- Emerges a more favorable environment for fractional ownership and tokenization projects
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Summary
The UAE's removal from the European list of AML/CFT risk countries is much more than a legal nuance - it is a game-changer for those looking to invest in Dubai. With the tightened regulations as well as improved reputation, Dubai is opening its doors to a new era of safe, transparent and accessible real estate investment for Europeans.
What can you do now as an investor?
At Dubai-Property.com we are happy to help:
- Finding projects that fit your investment goals
- Navigating compliance and banking requirements
- Guidance on legal and tax aspects of investing in the UAE
Want to learn more about how this change can support your real estate strategy in Dubai? If so, please contact us with no obligation.
Sources:
- ZAWYA
- Middle East Briefing
- Stibbe
- Gulf Business
- European Commission Official Notice
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