In his capacity as Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No. 4 of 2019 on the Real Estate Regulatory Authority (RERA), as a public institution, to be attached to the Dubai Land Department.

In accordance with the law, the Land Department shall replace the Corporation in the exercise of the functions related to the registration of leases, regulating the relationship between the lessors and the tenants, and other functions related to the leases.

Objectives of the Foundation

The new law included a reorganization of the legal provisions of the Corporation, which was established by Law No. (16) of 2007. The law defines a set of important objectives of the Foundation, primarily to contribute to the advancement of the real estate sector within an integrated system of regulatory and control measures, which enhance its role in economic development. Providing a safe and supportive environment for real estate development projects in a manner that protects the rights of real estate developers and investors, as well as keeping pace with the growth of the real estate sector and all related activities, enhancing the role of citizens in this sector, and implementing programs and projects. J enables them to work in real estate activities, as well as the consolidation of the principles of ethics and conduct real estate activities, and the development of charters so special.

Terms of reference and powers

The law granted the institution a set of powers, including «the organization of real estate development guarantee accounts, control and supervision, and the adoption of banking and financial institutions qualified to manage these accounts, and the adoption of rules governing practitioners of the real estate development, sale and rental of real estate, real estate brokers, real estate appraisal and common property» .

The Corporation is also responsible for organizing and licensing real estate activities, and supervising and supervising the practitioners of these activities to ensure their compliance with the legislation governing the sector. Issuing the necessary regulations for the training and qualification of employees in establishments authorized to work in real estate activities, through the Dubai Real Estate Institute of the Land Department, as well as the registration of real estate practitioners in the records prepared by me. In this regard, issuing identification cards to individuals engaged in real estate activities.

Real Estate Ads

The Corporation has the right to issue the necessary approvals for the content of real estate advertisements in the Emirate, including special development zones and free zones, including the DIFC, and to supervise and supervise them in coordination with the competent authorities in the Emirate, and to prepare and implement programs and projects that contribute to enhancing the role of citizens in the sector. Developing and implementing educational and awareness programs on the rights and duties of the parties involved in the real estate sector, in coordination with the Dubai Real Estate Institute, in addition to preparing and updating policies and studies to achieve a balance between supply and demand in real estate. The Real Estate Market shall be submitted to the Director General of the Dubai Land Department for approval in accordance with the legislation in force in the Emirate.

The Executive Director of RERA shall be appointed by a decision of the Chairman of the Executive Council of the Emirate of Dubai. He shall supervise the activities and activities of RERA to ensure the achievement of its objectives.

Contract Registration

The Chairman of the Executive Council of Dubai shall issue the necessary decisions to implement the provisions of this Law, which supersedes Law No. 16 of 2007 on the establishment of the Real Estate Regulatory Authority. The Department of Lands and Property shall replace the Corporation in the exercise of the powers related to the registration of leases and regulating the relationship between lessors and tenants, among others. Competencies related to leases, as stipulated in the legislation in force in the Emirate.

Any provision of any other legislation shall be repealed to the extent that it contradicts the provisions of this law. The law shall be published in the Official Gazette and shall come into force from the date of its publication.

Complaints and Audit

The Real Estate Regulatory Authority shall review and investigate complaints against real estate practitioners, take appropriate actions and decisions thereof, supervise, supervise and inspect the operation, management and maintenance of joint properties, joint parts and facilities to ensure their sustainability and audit reports, accounts and records in accordance with the legislation in force. Approving the real estate development projects in the Emirate, monitoring the completion rates, and issuing the necessary decisions and recommendations.

The law grants the RERA a range of powers, including “regulating escrow accounts”.

Al Zarooni: A more attractive investment real estate environment

Walid Al Zarouni, Chairman of W Capital Real Estate Brokerage, said: “The issuance of the law confirms the continued efforts of the leadership towards providing a more attractive investment real estate environment and providing greater protection for investors and developers. The law focuses on preserving the rights of all parties, sellers and buyers. It appears in expanding the oversight role of the institution. ”

He added: «The issuance of the law will have a clear impact in achieving a qualitative leap in this vital sector, which is given the highest priority by the Government of Dubai, which affects and consequently positively, in the overall economic development of the Emirate».

Al Zarooni stressed that the real estate market in Dubai continues to be resilient to the current developments, in light of the wise decisions that come in a timely manner, as well as the proactive approach by the authorities responsible for the sector.

Al-Qasim: The law represents an enhancement of the institution's role

Hisham Abdulla Al Qasim, CEO of Wasl Asset Management Group, said: “The law is a consolidation of RERA's success since its inception in 2007”.

He added: “Since then, the Corporation has contributed to the consolidation of transparency in the sector, where Dubai has scored a precedent in its surroundings to reassure all parties among developers and investors, and has also attracted more investments, and has put Dubai Properties on the list of best options for global capital. ».

He pointed out that «through the qualitative leaps in the volume of real estate transactions according to the periodic reports issued by the Dubai Land Department, which reveals continuous increases every year, it is clear to attract a variety of segments that did not exist on the map of real estate investment».

Alwadia: Raising the efficiency of the real estate market

"The new law contributes directly and indirectly to raising the efficiency of the real estate market in Dubai in the coming years, and helps to further regulate the market effectively, in line with the vision and objectives for which RERA was established," said real estate expert Muhannad Al-Wadi.

He explained that «the law grants a set of powers to the institution, including the organization of real estate development guarantee accounts, and the adoption of banking and financial institutions qualified to manage these accounts, in addition to the adoption of rules governing the practitioners of real estate development and sale of real estate, leasing and real estate brokers, real estate appraisal and common real estate» .

He pointed out, that «the issuance of such laws at this time comes to activate the interest of the leadership to stimulate the real estate sector».