A “real estate investment fund registry” will be established at the Dubai Land Department under the decree, which also lists the terms, conditions and procedures for entry into the registry.
Funds wishing to be listed on the register must be authorized by the relevant government authorities, including the Securities and Commodities Authority and the Dubai Financial Services Authority, the DIFC regulator.
The value of the real estate assets held by the fund at the time of the application for registration in the register must be 180 million dirhams or more. Funds must not be suspended from trading on Dubai Financial Markets at the time of application.
Prospects in commercial real estate
Dubai’s decision on the incentives comes just as its commercial real estate – which includes offices, warehouses, logistics and industrial assets, etc. – experiences a resumption of transactions. E-commerce and closer supply chains have resulted in significant business demand. The demand for office space has also increased in recent years.
The decree orders the creation of a “committee of property investment funds”. Its objective will be to identify the areas and properties in which the funds are authorized to invest, “either in full ownership or on lease for a period not exceeding 99 years”.
Executive Order No. (22) of 2022 authorizes the Chairman of the Executive Council of Dubai to modify the incentives specified by the Executive Order or to add new ones. The Chairman of the DIFC is also authorized to modify the incentives for property investment funds operating within the jurisdiction of the DIFC.
The Dubai Land Department must appoint a RERA Accredited Valuation Specialist to determine the value of the properties held by the funds.