20 July 2022 – Khaleej Times – www.khaleejtimes.com
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued Decree No. (22) of 2022, introducing incentives for property investment funds in Dubai.
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 Centre (DIFC).
The Decree also covers all real estate in Dubai, including properties located in private development zones and free zones, excluding DIFC.
Register of Property Investment Funds
As per the new Decree, a ‘Register of Property Investment Funds’ will be established at the Dubai Land Department. The Decree outlines the terms, conditions, and procedures for listing in the Register. Funds seeking to be listed in the Register should be licensed by government authorities including the Securities and Commodities Authority and the Dubai Financial Services Authority, DIFC’s independent regulator of financial services.
The value of real estate assets owned by the fund at the time of application for listing in the Register should be Dh180 million or above. Funds should not be suspended from trading in Dubai’s financial markets at the time of application.
Committee for Property Investment Funds
The Decree also directs the establishment of a ‘Committee for Property Investment Funds,’ whose purpose is 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.
The value of properties that funds invest in should be Dh50 million or above. The properties should be listed as commercial properties and comply with Decree No. (4) of 2010. Funds are allowed to relinquish ownership of properties only after approval from the Committee.
Property investment funds listed in the Register are entitled to receive the incentives specified by the Decree.
Decree No. (22) of 2022 authorises the Chairman of The Executive Council of Dubai to amend the incentives specified by the Decree or add new ones. The Chairman of the Dubai International Financial Centre is also authorised to amend incentives for property investment funds operating within DIFC’s jurisdiction.
Accredited valuation specialist
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 owned by property investment funds.
Apart from the resolutions issued by the Chairman of The Executive Council of Dubai in accordance with Decree No. (22) of 2022, the Director General of the Dubai Land Department is authorised to issue other resolutions necessary to implement the provisions of the new Decree.
Any legislation that contradicts the new Decree will be annulled. The Decree is effective from its date of publication in the Official Gazette.