That this is possible is testament to the revolution in real estate ownership laws that have swept across most of the GCC states since the start of the new millennium. In the space of just four years Bahrain, Qatar, Oman and the emirate of Dubai have - to differing extents - relaxed restrictions on the foreign ownership of land.

The rapid pace of change is quite startling. Until 2001, when Bahrain became the first state to allow limited non-GCC ownership, no country in the Arabian Peninsula permitted foreigners to own property. While property markets in most of the rest of the world were long ago opened to any investor regardless of nationality, the GCC remained fenced off, open only to nationals and in some cases to nationals of other GCC states.

But there has been a sea-change in recent years. First to take the plunge was Manama, when in 2001 it allowed genuine foreign ownership, both by individuals and companies, albeit in certain well defined zones. Qatar followed suit last year, introducing a new property law granting both GCC and non-GCC nationals rights to own properties in designated areas and allowing them to take out renewable leases of up to 99 years in certain investment zones. Oman has also promulgated legislation in late 2004, giving non-GCC nationals and companies the right to own freehold titles (see box).

It is in Dubai, however, that changes in property ownership have had the greatest impact. In 2002, the Dubai Lands Department changed regulations to allow foreigners to take out 99-year leases on properties in certain residential developments, such as the three Palm islands. Although a freehold law has yet to be promulgated, the result has been a real estate boom of unprecedented proportions. And so far the investment has paid off. Investors who bought property on the original Palm project have seen the value of their investment increase three-fold, for example.

The emirate's success story has been the catalyst for further changes in property legislation elsewhere. 'GCC states have recognised the opportunity that opening up real estate to foreigners brings,' says Dominic O'Neil, partner at UK law firm Trowers & Hamlins. 'People naturally look at Dubai and see how it has done and the economic benefits that come with the relaxation of laws.'

However, the lifting of restrictions across much of the GCC has thrown up some interesting political, legal and social issues. 'There are some underlying structural problems, arising from the recent legal changes,' says Ronald Hinchey, manager of UK propertyconsultant Cluttons. 'On the one hand you now have people buying property in perpetuity. On the other, each business has to renew their trade licences, and residents' visas for each employee. Naturally, one question that must be asked is whether businesses and individuals should be granted indefinite leave to stay and operate.'

Questions over inheritance and citizenship also arise. While legislation in Oman, for instance, states that property can be passed on to heirs, in Dubai, where there is as yet no legal basis for property ownership, owners are left uncertain as to how they stand.

Long-term residents may also feel they have a right to claim citizenship. It is not uncommon for long-time resident non-GCC Arab nationals to be given a GCC passport, and governments may find themselves under pressure to allow a limited form of citizenship later on down the line.

Similarly, allowing foreigners to purchase property has also potentially d