The authorities governing the Dubai International Financial Centre have been working towards the creation of a unique set of property laws that will govern the sale, resale, lending on and leasing of real estate within the Dubai International Financial Centre free zone and the laws have finally been released for inspection.  

The laws will be under public and professional scrutiny until September the 6th 2006 at which point any necessary amendments will be made to the legislation before it is passed to the Ruler of Dubai for his ultimate approval.  These legal developments are highly significant for all those hoping to invest in property in Dubai in what is likely to become one of the most important financial districts in the world.

The two laws are the DIFC Real Property Law 2006 and the Strata Title Law 2006, both are designed to work together for the secure provision of freehold ownership of real estate within the DIFC for all buyers and the complexity-free management and maintenance of shared buildings which will be necessary as the majority of properties that are likely to be constructed within the DIFC will be apartments within high-rise multi purpose complexes.

When the laws are finally ratified by His Highness Sheikh Mohammed Bin Rashid Al Maktoum they will then become law immediately and provide foreigners and local GCC citizens with equal rights to own freehold title to any property they purchase within the Dubai International Financial Centre.

The main points of the Real Property Law 2006 are: -

The law ‘guarantees’ the ownership of property and property rights within the DIFC for all those who will fall under the remit of the law – i.e., those who buy real estate within the DIFC free zone.

The law allows equal ownership rights within DIFC for local and foreign companies or individuals.

Once a property transaction is completed it is entered into the central registry from which point onwards the transaction is guaranteed and the buyer’s rights are protected according to this law.

The main points of the Strata Title Law 2006 are: -

Those who buy units (i.e., flats, apartments, studios, penthouses etc.,) within a single building are guaranteed freehold ownership title to that single unit.

The law works hand in hand with the Real Property Law 2006 which secures and guarantees the individual’s ownership rights – it just adds another dimension which relates to the management, maintenance and upkeep of common and shared areas.

The Strata Title Law 2006 defines areas of responsibility in co-owned spaces.

The completion of the initial drafts of both the Strata Title Law 2006 and the Real Property Law 2006 are incredibly positive actions as they reassure all those already committed to invest in DIFC and those considering making an investment into the exciting free zone that the government will keep its promises of making the free zone internationally accessible and successful.