His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has issued Decree No. (22) of 2022, introducing incentives for property investment funds in Dubai.
The Decree aims to enhance Dubai’s status as a global real estate investment destination and attract global property investment funds to the emirate.
It covers all real estate investment funds licensed and regulated by government authorities as well as private development zones and free zones, including the Dubai International Financial Centre (DIFC).
As per the new Decree, a ‘Register of Property Investment Funds’ will be established at the Dubai Land Department. The Decree outlines the terms, conditions, and procedures for listing in the Register. Funds seeking to be listed in the Register should be licensed by competent government authorities including the Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA), DIFC’s independent regulator of financial services.
The value of real estate assets owned by the fund at the time of application for listing in the Register should be $49 million or above. Funds should not be suspended from trading in Dubai’s financial markets at the time of application.
The Decree also directs the establishment of a ‘Committee for Property Investment Funds,’ whose purpose is to identify areas and properties that funds are allowed to invest in either through full ownership or lease for a period not exceeding 99 years.
The value of properties that funds invest in should be $13.6 million or above. The properties should be listed as commercial properties and comply with Decree No. (4) of 2010. Funds are allowed to relinquish ownership of properties only after approval from the Committee. Property investment funds listed in the Register are entitled to receive the incentives specified by the Decree.
The Decree authorizes the Chairman of The Executive Council of Dubai to amend the incentives specified by the Decree or add new ones. The Chairman of the Dubai International Financial Centre is also authorized to amend incentives for property investment funds operating within DIFC’s jurisdiction.
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