Estate agencies in Ras al Khaimah are to be put into the hands of Emiratis and GCC nationals under a new rule introduced yesterday. The move was seen by industry experts as a means of allowing nationals to benefit from the property boom, while a separate measure requiring agencies to make sizeable bank guarantees was designed to curb fraud. Under the executive bylaw, which was issued by Sheikh Saud bin Saqr, the Crown Prince and Deputy Ruler of Ras al Khaimah, estate agencies in RAK will have to be fully owned by UAE and GCC nationals, with licence-holders running the business themselves, or through a relative or partner, according to the government news agency WAM.
Estate agencies will also be obliged to make banking guarantees, with amounts varying depending on the nature of their business. The law also sets the commission businesses can charge, as well as outlining their responsibilities, duties and legal liability. Roger Wilkinson, the managing partner of Northern Emirates Property, a leasing and management company licensed in Ajman, said the move was intended to help Emiratis benefit from RAK's rapidly expanding property sector.
Developments by the property company Rakeen include the US$1.8 billion (Dh6.6bn) Al Murjan island, an offshore financial city and a convention centre. RAK Properties is also building numerous residential, commercial and tourism projects, including Mina al Arab and Julfar Towers. With so much development under way, estate agencies are expected to profit from a booming sales and leasing market. Mr Wilkinson said the laws would bring RAK closer to the Sharjah model, where licences are 100 per cent owned by UAE and GCC nationals. In contrast, neighbouring Ajman allows foreigners to own up to 49 per cent of an estate agency. The bank guarantees are intended to deter estate agencies from collecting investors' payments and fleeing the country, he added.
rditcham@thenational.ae
