With the aim of strengthening the emirate's position as a global destination for real estate investment

Mohammed bin Rashid issues a decree approving the privileges of real estate investment funds in Dubai

• The decree stipulated the establishment of a "Real Estate Investment Funds Register" at the Land Department.

  Photography: Patrick Castillo

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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, in his capacity as Ruler of the Emirate of Dubai, issued Decree No. (22) of 2022, approving the privileges of real estate investment funds in the Emirate of Dubai, with the aim of enhancing Dubai's position as a global destination for real estate investment, and providing Incentive advantages to encourage real estate investment funds to invest in various real estate projects in the emirate, as well as attract international real estate investment funds to practice their investment activities in the real estate sector in Dubai, as well as increase investment in the real estate market in it, by achieving a long-term capital return for shareholders in real estate investment funds.

Scope of application

The scope of application of the decree includes all real estate investment funds, licensed and regulated by the competent authority to operate in the emirate, including special development zones, and free zones, including the Dubai International Financial Centre. The scope of application also includes all real estate in the Emirate of Dubai, including properties located in Special development zones and free zones, excluding real estate located within the DIFC.

Create a record

The decree stipulated the establishment of a register with the Land Department, called the “Real Estate Investment Funds Register”, in which the real estate investment funds that meet the conditions for registration in it, and are eligible to benefit from the benefits prescribed under this decree, are to be registered, provided that the form of the register is determined by a decision of the Director General of the Land Department. and the data to be included in it.

Entry conditions

The decree specified the conditions and procedures for registration in the real estate investment fund register, the most important of which is that the fund be licensed by the competent authority, which the decree defines as the authority competent to license and regulate real estate investment funds in accordance with the legislation in force with it, and it includes the Securities and Commodities Authority, and the Dubai Financial Services Authority in the Dubai Center The international financial system, provided that the value of the real estate assets owned by the Real Estate Investment Fund at the time of submitting the application for registration in the register shall not be less than 180 million dirhams, and that the fund, at the time of submitting the application for registration in the register, shall not be suspended from trading its shares in the financial markets located in the Emirate of Dubai, while the decree specified As well as cases in which the fund is removed from the register of real estate investment funds.

Funds Committee

In the Emirate of Dubai, pursuant to this decree, a committee called the “Real Estate Investment Funds Committee” will be formed, entrusted with the task of determining the areas and real estate located outside the areas of ownership by non-nationals, in which real estate investment trusts may own absolute ownership that is not restricted by time, or use or lease it for a period of no more than More than 99 years, provided that the committee’s chairman and members are selected, and its work system determined, in accordance with a decision issued by the Chairman of the Executive Council of the Emirate of Dubai.

Assessed benefits

The Real Estate Investment Fund enjoys, as of the date of its registration in the Real Estate Investment Funds Register, the advantages established by this decree, and these advantages remain throughout the period of its registration in the Register, while the decree clarified the advantages related to ownership, usufruct and rental, whereby real estate investment funds registered in the Register, have the right The ownership of real estate located in the areas of ownership by non-citizens, and the real estate investment trusts registered in the registry, have the right to own real estate located outside the areas of ownership by non-citizens, absolute ownership not restricted by time, or to use or rent it for a period not exceeding 99 years, in the areas where Determined by the Real Estate Investment Funds Committee.

set of considerations

The decree obligated the Real Estate Investment Funds Committee, when determining the areas or real estate located outside the areas of ownership by non-nationals, to take into account a set of considerations, including: The market value of the property to be owned should not be less than 50 million dirhams, and that the property to be owned should have an investment return, in accordance with the criteria that Determined by the Land Department in this regard, as well as observing the provisions of Decree No. (4) of 2010 regulating the ownership of industrial and commercial lands granted in the Emirate of Dubai, if the property is granted, and any other considerations to be determined by a decision of the Director General of the Land Department in this regard Also, the Real Estate Investment Fund may not relinquish the ownership of the real estate owned by it in the area determined by the Real Estate Investment Funds Committee, except after obtaining its prior approval to do so, and any assignment made otherwise is considered null and void.

Certified Assessor

The decree stipulated that to determine the value of the real estate assets of the Real Estate Investment Fund, the Land Department appoints an appraiser approved by the Real Estate Regulatory Agency, to evaluate the properties owned by the founders of the Real Estate Investment Fund, according to the evaluation bases approved by the Department in this regard.

With the exception of the decisions that the Chairman of the Executive Council of the Emirate of Dubai is authorized to issue in accordance with the provisions of Decree No. (22) of 2022, the Director General of the Land Department issues the necessary decisions to implement its provisions, and they are published in the Official Gazette, provided that any text in any other legislation is repealed to the extent that it contradicts it. and the provisions of this decree.

The decree shall be published in the Official Gazette and shall come into force from the date of its publication.

granting powers

Decree No. (22) of 2022 authorizes the Chairman of the Executive Council of the Emirate of Dubai, based on the recommendation of the Land Department, to amend any of the advantages prescribed for real estate investment funds stipulated in this decree, or add any new advantages to them.

The decree also granted the President of the Dubai International Financial Center the power to determine the advantages enjoyed by real estate investment funds operating within the boundaries of the center, and to define the conditions and procedures for benefiting from these advantages.

Establishing a “Real Estate Investment Funds Committee” to identify the areas and real estate located outside the areas of ownership by non-nationals in which the funds may own absolute ownership that is not restricted by time, or use or lease it for a period not exceeding 99 years.

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