Issued by Mohammed bin Rashid .. It shall come into force 6 months after the date of its publication in the Official Gazette

A law regulating "time sharing" activity and providing suitable alternatives for tourists in Dubai

picture

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister, in his capacity as Ruler of the Emirate of Dubai, issued Law No. (14) of 2020 regarding the time-sharing system in Dubai, in the context of the continuous development of legislative frameworks supporting various economic sectors in the emirate, Including the tourism sector, and to ensure the creation of clear legal mechanisms that guarantee the rights of all parties and define their obligations, confirming Dubai's leadership in providing a pioneering model for sustainable development based on clear, comprehensive, effective and flexible legal frameworks.

Legal definitions

The law aims to regulate the practice of time-sharing activity in Dubai in accordance with the best international practices. The law defined this activity as “selling the time share or selling points in exchange for the use of a specific residence unit, according to the points contract or exchanging it for another residence unit.” The period of time specified in the time-sharing contract, during which the beneficiary benefits from the residence unit for the duration of the contract. In the contract or exchanged for another unit of residence ».

Law goals

Among the objectives of the law are encouraging tourism and the real estate sector in the emirate, motivating investors to set up tourism and real estate projects, providing the necessary guarantees to protect customers on the time-sharing system, providing suitable alternatives for tourists, and motivating them to spend holidays and vacations in Dubai, in a manner that meets their needs and is appropriate. With their financial means.

The law stipulates the competence of the Department of Tourism and Commerce Marketing in Dubai to regulate and supervise time-sharing activities in the emirate, granting it a set of powers.

The department is also responsible for monitoring and inspecting the facility, to verify its compliance with the provisions of this law and the decisions issued pursuant to it, in addition to receiving complaints against the facility and the right of any individual or entity conducting activity in the emirate without permission or approval.

Database

The Department of Tourism and Commerce Marketing in Dubai shall build, in accordance with this law, a database of establishments operating in the area of ​​the time-sharing system, and of accommodation units in the emirate, and determine the form of the facility record and the data to be included in it, and set the basic conditions that must be met in the contracts related to the time-sharing system, And setting the requirements, conditions and controls necessary for marketing, advertising or advertising of points or time shares in the residence units in the emirate, and those that must be provided in the contracts for the exchange program for establishments operating in the area of ​​the time-sharing system in Dubai, as well as contracts for the sale of accommodation units belonging to the establishments in the Emirate. The emirate, and the department is also responsible for setting the requirements and requirements for transferring the rights of the beneficiary mentioned on the time share or points to another beneficiary.

The term of the permit

The law specifies the period for the permit and approval to practice the time-sharing activity to be one year, renewable for similar periods, and the Department of Tourism and Commerce Marketing may, upon the establishment’s request, approve that the period of the permit or approval be longer than one year and a maximum of four years, and the facility must renew the permit or Approval at least 30 days before the expiry date.

The law detailed the obligations of the establishment authorized to practice time-sharing activity in the Emirate of Dubai, as well as the obligations of the beneficiary who benefits from the residence unit, and clarified the conditions for the validity of the time-sharing contract, through which the time share is sold in exchange for a known financial allowance, under which the facility is obligated to enable the beneficiary to benefit from the residence unit Specified in the contract during the time quota, as well as the conditions for validity of the points contract.

Beneficiary rights

The law grants the beneficiary the right to withdraw from the time-sharing contract or the points contract without giving any reason, within (10) days starting from the date of obtaining the signed copy of the contract, unless the two parties agree on a longer period, while the beneficiary must notify the facility of his departure from the contract with notice Written via registered mail or e-mail to the facility's address specified in the contract or any other means specified in the contract, while the beneficiary does not bear any financial burdens or expenses as a result of this reversal if he renounces the contract.

The law also allows the beneficiary to terminate the time-sharing contract or the points contract of his own will within a year from the date of the conclusion of the contract, in the event that the facility practices the activity without a permit or approval issued by the department at the time of the contract, or the contract does not include the basic data stipulated in this law, as well as In the event that the facility fails to deliver the signed copy of the contract to the beneficiary, or the points contract is not registered in the entity’s register, or the necessary measures are taken to register the time-sharing contract in the Land Registry, the beneficiary is compensated for the termination to the extent agreed by the parties.

Adjustment

The new law obligated all individuals, entities and establishments operating in the area of ​​the time-sharing system in the Emirate of Dubai at the time of its implementation, to reconcile their situation in accordance with its provisions within a period of six months from the date on which this law came into force, and the Director General of the Department of Tourism and Commerce Marketing may extend this deadline for a similar period in Conditions that require this.

The provisions of this law are without prejudice to the continuity of time-sharing contracts and point-point contracts that were concluded prior to their implementation, whether the accommodation unit subject of these contracts is located within a hotel or non-hotel facility, until the end of the period stipulated in those contracts, or terminated during its previous validity Its parties or a court ruling.

Any text in any other legislation shall be repealed, to the extent that it contradicts the provisions of this law that is published in the Official Gazette and comes into force six months after the date of its publication.

Activity log

A special register shall be established at the Department of Tourism and Commerce Marketing, in accordance with this law, called the 'Activity Register', which is designated to register the establishments authorized to practice activity in Dubai, the accommodation units assigned to the time-sharing system therein, and the establishments authorized to market, advertise and advertise this system in the emirate.

The law includes the controls of practicing time-sharing activity, indicating the prohibitions that must be observed, as well as the controls of advertising and marketing for this activity, as it is not permissible to market in the emirate, or to advertise or advertise in this regard by any means, whether inside or outside the emirate, unless the marketer is authorized So her from the Department of Tourism and Commerce Marketing.

• Providing the necessary guarantees to protect customers on the time-sharing system, and encouraging tourists to spend holidays and vacations in Dubai.

Follow our latest local and sports news, and the latest political and economic developments via Google news