The provisions of the new law on real estate in Dubai
The new Property Registration Law, which is expected to give property ownership rights to foreign investors, will enter into force very soon, the Dubai-based Khaleej Times reported the other day, citing a reliable source.
As a source told the Khaleej Times, at the moment the law has already been formed and is in the final stages of adoption in the offices of the leadership of Dubai.
According to the Khaleej Times, in accordance with it, foreign investors will be able to buy and rent land after receiving the appropriate permission from three master developers: Emmar, Al Nakheel and Dubai Real Estate.
After agreement with the governor, developers will determine which land will be put up for sale to foreign investors. Foreign citizens, regardless of whether they have a residence permit in the UAE or not, will be able to acquire these plots by concluding an agreement with one of the three indicated master developers.
The land will be registered in the name of the foreign investor only after he receives a special permit from the master developer, issued after full payment of the cost of the land.
The law provides for three forms of ownership of real estate: freehold (full ownership), usufruct (the right to use other people's property and income from it) and ordinary ownership.
If a foreigner buys property on the basis of freehold rights, he becomes the full owner of the property and this unit of real estate (building) is recorded in his name.
The second form of ownership is usufruct (the right to use other people's property and income from it) or long-term lease. The new law establishes usufruct as the right to use real estate owned by another person, with the appropriation of the benefits it brings, but under the condition of preserving the substance of the thing.
The minimum term for usufruct is five years. The maximum term is from 50 to 99 years.
Simply put, this is a long-term lease paid in advance for decades. Previously, she appeared under the name "leasehold" (Note).
Registration transaction fee will leave 2% of the total value of the property. Of these, 1.5% should be paid by the buyer, and 0.5% by the seller. After full payment of the full amount, the owner of the property can either bequeath or sell the property.
According to the Khaleej Times, the most important provision of the new law concerns foreign investors who have already purchased property in Dubai. They will have to legalize their property through registration with the authorities as soon as the law comes into force.
The law also defines the scope of the Department of Land and Property of Dubai.
Two years later, Dubai will not be recognized
Until the end of 2008, more than $ 7 billion will be invested in the development of roads, transport infrastructure and improving traffic conditions in Dubai. According to the representatives of the Committee on Roads and Transport of the Dubai Municipality, in two years the city will not be recognized.
“We have huge, far-reaching plans,” Mattar Muhammad Al Thayer, chairman of the committee on roads and transport of the municipality of Dubai, told the Gulf News newspaper, “we want the transport situation in the city to become better. And it’s very important for us now that we have full support Dubai residents. "
$ 7 billion was allocated for the implementation of the plans, of which $ 4 billion will go to finance the construction of the Dubai metro, and 2.5 billion will go to the development of roads.
According to Mr. Al Thayer, the Committee has developed a strategic plan in five parts, which is fully approved by Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and vice president of the UAE.
The first point of the plan is the constant monitoring of traffic conditions in Dubai and the rapid response to problems. For this, a special section has been created in the committee.
The second point is the development of water transport. But the opinion of the leadership of Dubai, the introduction of a water taxi service will help relieve city roads. It is planned that the grid of water transport will work at full capacity in a year and a half.
The third point was the improvement of public transport services. At the moment, the committee is conducting an in-depth study of the current state of affairs, the results of which will be summed up in October. The municipality of Dubai has already allocated more than $ 30 million for the purchase of new scheduled buses. Most of them will be classified as luxury.
The fourth paragraph of the plan stipulates the need for short-term studies aimed at solving problems with traffic jams. Among the options under consideration, the introduction of a special lane for public transport; the introduction of a special “smart” information system based on GPRS, which will manage the roads; a ban on the use of cars older than 10 years.
To date, 11 world-renowned consultants have been involved in solving transport problems in Dubai, among which there is a competition for the best idea. Prize fund - 3 million dirhams in cash.
The fifth and final point of the plan was the solution to parking problems in Dubai. Concluding the interview, Mr. Al Thayer turned to the residents of Dubai with a request to be tolerant of the construction work, especially on the Dubai Metro project.
In the UAE 100% ownership of private sector companies will be allowed
2006 may be a turning point for business in the UAE: it is possible that in the near future foreign businessmen will be allowed to create companies with 100% foreign capital.
The new legislation governing the creation and operation of private sector commercial structures is planned to be adopted in June this year. According to the local newspaper Gulf News, Khalid Al Malik, the head of the Dubai industrial town under construction in the Jebel Ali area, told a group of British businessmen about this.
According to Mr. Khalid, the draft law was approved by the leadership of all seven emirates and is now at the stage of finalization. The newspaper does not report whether official sources confirmed this information.
Recall that in accordance with existing legislation, a foreign businessman can open a company in the UAE only with the participation of 51% of local capital and 49% of foreign capital. The only exceptions are Free Economic Zones.
