Dubai has amended the rules governing the granting of titles to allotted industrial and commercial land in the emirate, it was announced on Friday.
The new ruling, issued by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, amends articles (1) and (2) of the decree No. (4) of 2010.
Article 1 of the original decree outlines the definitions, while article 2 covers the ownership of granted land in the emirate, the Dubai Media Office said in a statement.
The new decree defines “allotted land” as land plots allocated for industrial or commercial use whose “usufruct right is awarded to UAE nationals, including land subject to an order of disposition and allotted land transferred to third parties by way of succession, assignment, donation or in return for consideration”.
A “beneficiary” is defined as a UAE citizen to whom land is allotted, according to the statement.
The amended decree permits granting the allotted land to the beneficiary at their request on a freehold basis and without any restriction on its “use, exploitation or disposition, provided the allotted land includes the real estate project — either completed or under construction — in accordance with the rules and regulations of the Dubai Land Department”, it added.
Dubai, the commercial and tourism hub of the Middle East, continues to streamline its property regulations as the real estate market bounces back amid a strong economic rebound from the pandemic-driven slowdown.
Dubai ranked first in the world for improving real estate transparency in the 2020-2022 period, followed by Abu Dhabi, France, the Netherlands, the US, Germany and India, a report released last week showed.
On Wednesday, the emirate introduced new regulations to govern the granting of “Musataha” rights on commercial lands in Dubai to promote its status as a preferred global real estate investment destination.
A Musataha is a specific type of investment partnership between the public and the private sectors, granting an investor rights to develop a particular plot of land for a defined period of time.
As per the law, the Musataha agreement creates a real property right that entitles its holder to construct a building or invest in, mortgage, lease, sell, or purchase a plot of land belonging to a third party for a period of up to 35 years. The agreement can be extended for a maximum of 50 years.
The move is aimed at promoting Dubai’s status as a preferred global real estate investment destination.