Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has issued Decree No. (22) of 2022, which introduces incentives for investment funds real estate in Dubai.
The Decree aims to enhance Dubai’s status as a global real estate investment destination and attract global real estate investment funds to the emirate. The Decree covers all real estate investment funds authorized and regulated by government authorities, as well as private development zones and free zones, including the Dubai International Financial Center (DIFC). The Decree also covers all real estate in Dubai, including properties located in private development zones and free zones, excluding DIFC.
According to the new Decree, a “Property Investment Funds Registry” will be established in the Dubai Land Department. The Decree describes the terms, conditions and procedures for registration in the Registry. Funds seeking to be listed on the Registry must be licensed by the relevant government authorities, including the Securities and Commodities Authority and the Dubai Financial Services Authority, DIFC’s independent financial services regulator.
The value of real estate assets owned by the fund at the time of registration application must be AED 180 million or more. The funds must not be suspended from trading on the Dubai Financial Markets at the time of application.
The Decree also mandates the establishment of a ‘Real Estate Investment Funds Committee’, the purpose of which is to identify areas and properties in which the funds may invest, either through full ownership or lease for a period not to exceed 99 years.
The value of the properties in which the funds invest must be AED 50 million or more. Properties must be listed as commercial properties and comply with Decree No. (4) of 2010. Funds may relinquish ownership of properties only after Committee approval.
The real estate investment funds registered in the Registry are entitled to receive the incentives determined by the Decree.
Decree No. (22) of 2022 authorizes the President of the Executive Council of Dubai to modify the incentives specified by the Decree or add new ones. The President of the Dubai International Financial Center is also authorized to modify the incentives for real estate investment trusts operating within the jurisdiction of DIFC.
The Decree also directs the Dubai Land Department to appoint an appraisal specialist accredited by the Dubai Real Estate Regulatory Agency (RERA) to determine the value of properties owned by real estate investment trusts.
In addition to the resolutions issued by the President of the Dubai Executive Council pursuant to Decree No. (22) of 2022, the Director General of the Dubai Land Department is authorized to issue other resolutions necessary to implement the provisions of the new Decree.
Any legislation that contradicts the new Decree will be repealed. The Decree is effective from the date of its publication in the Official Gazette.