Dubai has enacted a new law to govern the issuance of Musataha rights on commercial sites in the emirate. For a set amount of time, a Musataha agreement allows its holder the right to develop a parcel of land owned by another party. The Musataha agreement, according to the new decree, provides a real property right that permits its holder to construct or invest in a structure, mortgage, lease, sell, or acquire a piece of land belonging to a third party for a term of up to 35 years.
The law, issued by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, is part of the emirate’s efforts to cement its position as a favoured worldwide real estate investment destination. It comes only one day after Dubai’s ruler issued a directive encouraging the expansion of real estate investment firms in the emirate.
The new register covers government-licensed and regulated real estate investment funds, as well as those in private and free zones, such as the Dubai International Financial Centre. It also includes all real estate in Dubai. Applicants for the registry must have real estate holdings worth at least AED180 million. The move coincides with Dubai’s increased efforts to attract international investors, with real estate being one of the priority areas.
In recent years, the UAE property market has seen a considerable upturn, with the government capitalising on the development opportunities by enacting progressive policies such as eased visa rules and easier market entrance for international investors. The current increasing trend in Dubai’s real estate market has been accompanied by a raft of new regulations and government-led changes.
According to Dubai Land Department (DLD) data, the real estate market reported AED 22.7 billion in sales in June, the greatest sales numbers in the recent 13 years, accounting for about 71% of the 2021 sales volume.
