The Vice President of the United Arab Emirates, Prime Minister and Ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, has issued a decree introducing incentives for real estate investment funds in Dubai, the Emirates News Agency reported ( WAM).
The decree aims to boost Dubai’s status as a global real estate investment destination and attract global real estate investment funds to the emirate, WAM said.
The decree covers 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 Center (DIFC). It also covers all real estate in Dubai, including properties located in private development zones and free zones, excluding the DIFC, the news agency added.
Pursuant to Executive Order No. (22) of 2022, a “Registry of Real Estate Investment Funds” will be established at the Dubai Land Department.
The decree describes the terms, conditions and procedures for registration in the register. Funds wishing to be listed on the register must be authorized by the relevant government authorities, including the Securities and Commodities Authority and the Dubai Financial Services Authority, the DIFC’s independent financial services regulator.
The value of the real estate assets held by the fund at the time of application for registration must be AED 180 million or more. Funds must not be suspended from trading on Dubai Financial Markets at the time of application.
According to WAM, the decree also directs the creation of a “real estate investment fund committee”, the purpose of which is to identify the areas and properties in which the funds are authorized to invest either in freehold or on a rental basis. for a period not exceeding 99 years.
The value of the properties in which the funds invest must be greater than or equal to AED 50 million. Properties must be listed as commercial properties and comply with another decree of 2010. Funds are only allowed to relinquish ownership of properties after approval by the Committee.
The property investment funds entered in the register are entitled to benefit from the incentives provided for by the decree.
Executive Order No. (22) of 2022 authorizes the Chairman of the Executive Council of Dubai to modify the incentives specified by the Executive Order or to add new ones. The Chairman of the Dubai International Financial Center is also authorized to modify the incentives for real estate investment funds operating within the jurisdiction of the DIFC.
The decree also directs the Dubai Land Department to appoint a valuation specialist accredited by the Dubai Real Estate Regulatory Agency (RERA) to determine the value of properties held by real estate investment funds.
In addition to resolutions issued by the Chairman of the Executive Council of Dubai pursuant to Executive Order No. (22), the Director General of the Dubai Land Department is authorized to issue other resolutions necessary to implement the provisions of the new Executive Order.