Mohammed bin Rashid issues a decree regarding the ownership of educational lands in Dubai

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. (32) of 2020 regarding the ownership of educational lands in the Emirate of Dubai, which shall be effective as of the date of its publication in the Official Gazette. 

The lands that the decree stipulated for the transfer of ownership to the Knowledge Fund Foundation included: educational lands granted to government agencies and granted to real estate developers, including lands that were leased by them to others or allowed to be exploited or developed, in addition to educational lands, space granted to individuals and private entities, upon the expiration of Five years after the grant without utilizing it or permanently stopping educational activity in these lands or upon the end of the purpose of its allocation.

Ownership of educational lands allocated to federal government agencies, to foreign communities, private establishments, or other entities, is also transferred to the Knowledge Fund Foundation upon the lapse of five years from its allocation without its exploitation or the final cessation of educational activity in these lands or upon the end of the purpose of the allocation, and the allocated educational lands. For private establishments in the event that they lack their characteristic as a non-profit establishment, and space lands that are allocated for educational purposes after the implementation of this decree from the relevant authorities in the Emirate of Dubai, including lands under the supervision of real estate developers.

With the exception of educational lands granted to educational government agencies, and those located within educational areas, such as Dubai Academic City and Knowledge Village, as well as educational lands that carry any real estate mortgages or financial obligations, whenever these mortgages and obligations exceed the desired benefit from the transfer of their ownership to the Knowledge Fund Foundation, Unless the institution adheres to the transfer of its ownership to it, the ownership of the lands of joint use is also transferred, in case there is a part of its uses dedicated to educational purposes.

Real estate developers

The decree permits real estate developers to retain the educational lands that were granted to them before the implementation of this decree, in exchange for their commitment to pay 75 percent of the market value of each educational land for the benefit of the Knowledge Fund Foundation, and the real estate developer must pay the indicated value in annual installments, not exceeding 34 for a period. Year.

Within a period not exceeding three months from the effective date of this decree, the Land Department shall determine the current market value of the lands granted to real estate developers, provided that this value is considered for the purposes of meeting the percentage required to be paid by real estate developers until payment is completed, while the ownership of those lands is transferred. To the Knowledge Fund Corporation in the event that the real estate developer does not commit to paying this percentage, and the amounts paid by the real estate developer to the corporation in this case are not refundable.

The decree obligated real estate developers not to modify the use of the lands granted to them except after obtaining the prior approval of the Knowledge Fund Foundation and the relevant government agencies, and in accordance with the approved planning standards in this regard.

Transfer of title mechanisms

The decree specified the mechanisms for transferring the ownership of educational lands to the Knowledge Fund Foundation, especially with regard to the inventory of educational lands included in this decree, lease and exploitation contracts concluded by government agencies with others, and technical data and information related to the lands described, while the

decree

required

real estate developers to notify the Knowledge Fund Foundation of their desire In retaining educational lands, within a period not exceeding (6) six months from the date of determining the market value of these lands by the Dubai Land Department, otherwise the institution may start taking the necessary measures to transfer ownership of these educational lands to it.

 The decree stipulates that the Knowledge Fund Foundation and the real estate developer enter into an agreement whereby the rights and obligations of both parties are determined, including mechanisms for determining the market value of educational land, providing the foundation with relevant technical data and information, paying the fees, and implementing the obligations and rights entailed on the educational land. Dealing with lands for which joint development contracts are concluded with other real estate developers, maintaining the infrastructure for educational lands transferred to the institution, and developing educational lands, including determining the type of educational institution required to occupy these lands.

As of the date on which this decree comes into force, the Knowledge Fund Foundation replaces government agencies and real estate developers in lease contracts and the use of educational lands covered by the provisions of this decree after transferring its ownership to the Foundation.

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