by Naya Properties 
Dubai has passed a new real estate decree, issued at the initiative of His Highness Sheikh Mohammed bin Rashid Al Maktoum, ruler of the emirate. The new law aims to reinforce Dubai's status as a global real estate investment destination and attract global real estate investment funds to the emirate.
The aim of this decree is to grant a number of privileges to UAE real estate investment funds. It also aims to create new incentives to attract more foreign investment to Dubai. In addition, the law will bring additional transparency to institutionalized investors.
Find out more about this new real estate law below.
What does the new real estate law cover?
The new decree covers all real estate investment funds authorized and regulated by government authorities. It also covers private development zones and free zones, including DIFC.
In addition, it also covers all real estate in Dubai, including properties in private development zones and free zones, excluding the DIFC.
Register of real estate investment funds in Dubai
The new law provides for the creation of a register, called the Real Estate Investment Funds Register, to record details of all qualified real estate funds that are to benefit from the privileges described in the new decree-law. The Dubai Land Department (DLD) will be the custodian of this investment fund register.
To join the register, real estate funds must have at least AED 180 million (EUR 49 million*) in real estate assets. They must also not be suspended from trading on the Dubai financial market. In addition, a fee of AED 10,000 must be paid to the DLD when applying for registration. Regulatory authorities, notably the Securities and Commodities Authority and the Dubai Financial Services Authority, must also issue licenses for these funds.
Committee for real estate investment funds
The decree also provides for the creation of a "Real Estate Investment Fund Committee". Its purpose is to identify the areas and properties in which funds are authorized to invest, either in full ownership or on a leasehold basis for a period not exceeding 99 years.
The value of the properties in which the funds invest must be AED 50 million (EUR 14 million*) or more. The properties must be listed as commercial properties and comply with decree no. (4) of 2010. Funds are allowed to relinquish ownership of real estate only after approval by the Committee.
Accredited appraisal specialist
In addition to this, the decree also orders the DLD to appoint a valuation specialist accredited by the Dubai Real Estate Regulatory Agency (RERA) to determine the value of properties held by real estate investment funds.
The DLD is also authorized to issue any other resolutions required to implement the new decree.
According to Al-Bayari, Chairman of D&B Properties, the United Arab Emirates has recently become known as the destination of choice for millionaires. Thanks to this initiative, Dubai will continue to occupy first place among wealthy investors.
