DUBAI: Dubai has issued a new law to spur real estate investment through public-private partnerships.
Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE, issued the decree that regulates “Musataha” rights on commercial land in Dubai, Emirates News Agency reported.
Musataha agreements, according to the new law, allow investors to construct, mortgage, lease, sell and buy on a plot of land belonging to a third party for a term of up to 35 years.
The decree aims to spur the creation of new construction ventures in the emirate as part of plans to become a top international real estate investment location.
Musataha contracts may be extended for up to 50 years. Two years before the expiration date, a renewal request must be made.
The agreement’s holder is subject to a number of rules and regulations. Among them is refraining from altering the use of commercial property without a land owner’s consent.
Any Musataha agreement must also be registered in Dubai Land Department records or through the Dubai International Financial Centre registry, depending on the holder.
An agreement’s terms, conditions and obligations must be specified by the Dubai Land Department.
Commercial land subject to a Mustaha agreement may be inspected by the department to confirm that the deal is fully adhered to.
The Government Claims Act No. 3 of 1996’s provisions and revisions must be observed if the Dubai Land Department is to facilitate the peaceful resolution of any disputes brought about by complaints and grievances.
The decree mandates that the Dubai Land Department establish a special registry for Musataha agreements.
The new law also specifies the fines that will be imposed if no certificate of completion is provided for a projects constructed on commercial property covered by the agreement.
