He Makes An Executive Order That Applies To All Real Estate In The Emirate. Including Buildings in Private Development Zones And Free Zones.
Sheikh Mohammed declares incentives for funds that engage in real estate. All properties in the Emirate, including those in private development zones and free zones, are subject to his edict. His Majesty Decree No. (22) Of 2022, issued by Sheikh Mohammed bin Rashid Al Maktoum. The Vice-President and Prime Minister of the United Arab Emirates and Ruler of Dubai, established incentives for real estate investment funds in Dubai.
The Decree includes private development zones and free zones, such as the Dubai International Financial Centre. Along with real estate investment funds authorization and governing by government agencies. The Decree also applies to all real estate in Dubai, with the exception of assets in DIFC and private development zones and free zones.
Register of Property Investment Funds
A “Register of Property Investment Funds” will establish at the Dubai Land Department in accordance with the new Decree. The requirements, conditions, and steps for listing in the Register described in the Decree. The Securities and Commodities Authority and the Dubai Financial Services Authority, an independent financial services regulator for the DIFC. That shall grant licenses to funds wishing to be included in the Register. When the fund applied to be included in the Register, the value of its real estate holdings should have been Dh180 million or more. At the time of application, funds should not have their ability to trade on Dubai’s financial markets suspended.
Committee for Property Investment Funds
The Decree also mandates the formation of a “Committee for Property Investment Funds” whose task to determine which regions and assets of permitted funds to invest in. Either through outright ownership or a lease with a maximum term of 99 years.
Properties that funds invest in should be worth at least Dh50 million. The homes have to be classified as commercial homes and conform to Decree No. (4) of 2010. Property ownership gives the permission to transfer the Funds with the Committee’s consent. The Decree’s incentives are available to property investment funds that with registration.
Decree No. (22) of 2022 grants the Chairman of The Executive Council of Dubai the authority to alter or add to the incentives listed in the Decree. The Dubai International Financial Centre Chairman is also permitted to change the incentives offered to real estate investment funds that are subject to DIFC’s regulation.
Accredited Valuation Specialist
In order to evaluate the value of properties owned by property investment funds, the Decree also instructs the Dubai Land Department to hire a valuation specialist who approved by the Dubai Real Estate Regulatory Agency (RERA).
The Director General of the Dubai Land Department is entitled to make further decisions required to carry out the terms of the new Decree in addition to those issued by the Chairman of The Executive Council of Dubai in line with Decree No. (22) Of 2022. Any law that conflicts with the new Decree shall be revoked. The Decree goes into force on the day that published in the Official Gazette.