Out of the box

New requirements for more transparency

Ismail Al Hammadi

August 24, 2022

All real estate agents and brokers currently active in the country must submit reports of real estate buying and selling transactions in freehold areas to the Financial Information Unit (this decision entered into force as of last July), whether the purchase payment is in full or multiple payments of 55 thousand dirhams or more. , along with payment by virtual assets or transferred from virtual assets.

This step is considered the first and the first of its kind in the region. Its aim is primarily to support the state's efforts in combating the phenomenon of money laundering and combating suspicious investments that harm the economy.

It is also, in fact, another step that enhances the transparency of transactions in the real estate sector, as it is one of the fastest growing and developing sectors in the Middle East and North Africa region, and one of the main tributaries of the national economy.

It also closes the door to manipulators with real estate transactions reports registered with the relevant authorities, especially fake reports.

Here, it can be said that the real estate sector in the UAE, despite its recent inception, has reached a stage of transparency that goes beyond the largest real estate markets in international cities, and this will give many real investors more encouragement and confidence in the sector and the legal bodies in the country.

On the other hand, this step will contribute to a wide screening process for various real estate agents and brokers, whether they are natural or legal persons active in the market, as well as reclassifying them according to their financial reports submitted to the Financial Information Unit.

The truth is a bold step, implemented in a sector that is considered one of the sectors most used by some for fraud, fraud, suspicious deals and money laundering across the world, and most importantly, it touches one of the main sectors in the economic diversification strategy pursued by the state, as it is a new mechanism to guide this sector In accordance with sound financial practices that would raise the standards of transparency applied so far at the level of various real estate purchase and sale transactions in the market, whereby the agent is required, by submitting the transaction report, to disclose all documents and identity data to the parties to the sale transaction, which means imposing more control over The real estate transactions that take place, and this is another reflection of the level of keenness of the legal authorities to preserve the rights of all real estate sector dealers, to ensure that they smoothly practice their investment activities, and to reduce various suspicious practices and illegal investments or any manipulations in registered real estate transactions that may harm the investment environmentThe real estate sector, as a major contributor to the national economy.

The sensitivity of the real estate sector and its position in the economic equation dictate continuing efforts to enhance its transparency and improve it globally.

"The real estate sector in the UAE has reached a stage of transparency that goes beyond the largest real estate markets in global cities." 

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