His Highness Sheikh Mohammed bin Rashid Al Maktoum – Vice President and Prime Minister of the UAE and Ruler of Dubai, this week introduced a broad range of incentives for property investment funds in Dubai.
The new law is expected to boost Dubai’s status as a global investment hub and go-to destination for investors and attract a wider pool of investments into Dubai.
Cityscape Intelligence takes a look at the new regulations under the decree:
REGISTER OF PROPERTY INVESTMENT FUNDS
All real estate investment funds licensed and regulated by government authorities as well as private development zones and free zones, including the Dubai International Financial Centre (DIFC) will sit under the new decree.
A Register of Property Investment Funds will be established at the Dubai Land Department, and it will outline the terms and conditions, as well as the procedures for listing in the Register.
Funds seeking to be listed in the Register should be licensed by competent government authorities including the Securities and Commodities Authority and the Dubai Financial Services Authority, DIFC’s independent regulator of financial services.
According to the decree, the value of real estate assets owned by the fund at the time of application for listing in the Register should be AED180 million or above. Funds should not be suspended from trading in Dubai’s financial markets at the time of application.
COMMITTEE FOR PROPERTY INVESTMENTS FUNDS
The establishment of a Committee for Property Investment Funds was created under the decree to identify areas and properties that funds are allowed to invest in either through full ownership or lease for a period not exceeding 99 years.
According to the decree, the value of properties that funds invest in should be AED50 million or above and the properties should be listed as commercial properties. In addition, funds are allowed to relinquish ownership of properties only after approval from the Committee.
ACCREDITED VALUATION SPECIALIST
Under the new law, the Dubai Land Department will appoint a valuation specialist accredited by the Dubai Real Estate Regulatory Agency (RERA) to determine the value of properties owned by property investment funds.
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