The property boom in Dubai can be traced back to 2002 when His Highness Sheikh Mohammed bin Rashid Al Maktoum that freehold ownership of certain properties in Dubai was available to investors of all nationalities. Since then several real estate related projects have been launched and sold to foreigners. The projects that had been launched and sold to foreigners are the include Dubai Marina, Emirates Hills, Jumeirah Islands, the 3 Palm Islands, Dubai Waterfront, Jumeirah Beach Residence, The Meadows, The Springs, Arabian Ranches, the list is endless.
In some instances, properties have already been completed and handed over to buyers. The Dubai emirate has become a real estate business since the announcement and this had lead investors in the country. In my opinion, the ruling party and Maktoum had done this in order to increase their funds in the government. However, the Sheikhs does not only think about the return on investments and nor do they need the lands to symbolize their power over the emirate. Being the ruling party of the emirate, it already had given them the sovereignty over the land and the citizens of Dubai.
The Law does not give foreigners the right to the land but it only gives the foreigners the right to lease the land for 99 years. This is the only way on for the foreigners to invest their money in the real estate of Dubai. The website, PropDubai (2006) reported in the context of real estate that a new law has been passed in the year 2006. This is the Law No. 7 concerning Real Property Registration in the Emirate of Dubai which was signed by Sheikh Mohammed on March 13, 2006. The law is affected starting May 2006. The article 4 of the law states that UAE and GCC nationals have the right to own real property in Dubai.
The law does not give any distinction between UAE and GCC Nationals. The rights included in the UAE and GCC Nationals are the right of usufruct, freehold ownership, right of mustaha and a long lease of up to 99 years. Right of Usurfuct is the right where the person has the right to use and exploit property belonging to another person. The right of Mustaha is almost the same as the right of usufruct, however, this is the right to exploit the land belonging to another person but it also includes the right to build on the land belonging to another person.
This right is characterized further as a “Ground Development Lease”. The UAE and GCC Nationals can own land anywhere in Dubai. Individuals and companies of the UAE and GCC have rights to claim for the land. However, if the company has foreign shareholders, the government would not be considered a UAE or GCC National in owning a property. An exception of these is the companies that are listed in Dubai Financial Market which are the Public Joint Stock Companies. These companies allow their shares to be bought by foreigners, however, the government still considers it as UAE or a GCC National and can own property anywhere.
Examples of these companies are Emaar and Union Properties. The Right to Lease or own a freehold title in terms of real estate is given to the nationalities other than the UAE and GCC national. This is granted and determined by the Ruler’s approval. A freeholder is considered as the absolute owner of the land and buildings comprised in his title. The person has the right to occupy and use and enjoy his property forever in perpetuity or until the holder has transferred his title to the new owner. The heirs of the holder are entitled to inherit his title upon his death. The right shall not exceed 99 years.
According to the International Reports website, the selling of the rights of a particular estate depends on the considerations of the ruling family. In other words, the ruling family has the decision on whether to grant the real estate or not. Not all areas of Dubai are available to the public. The website also had reported that all land in Abu Dhabi, the largest of the UAE is owned by the government. In the year 2005, the real estate law of the UAE does not allow foreign companies and individuals to own land or real estate in Dubai. The property could either be rented or leased for the purpose of running a business.
Businesses follow a comprehensive framework of legislation. Applicable laws are available for commercial transactions, intellectual property, labour and other aspects of business life. Several clauses in the New Property Law had been stated in the article according to gowealthy. com website (2006). The foreigners will have the right to lease or purchase the land, after gaining approval from the three master developers. The Master Developers are Emmar, Al Nakheel and Dubai Properties. Legalization of properties that had been purchased must be registered with the authorities.
The law had also specified the different functions and responsibilities of the Department of Land and Property. The Department will determine the survey areas; approve the land and the fees and services needed. All investments involve a certain degree of risk. Investors may not gain the original investment; investors must take note of several factors before deciding to invest in an asset. The investor must take note of the past, present and future performance of a certain investment. The rate of return is used to measure the return of investment the customer and how much earnings must the investor gain.
The economy must also be considered in the investment selection process because it could determine whether the market has a high growth of potential. The investors must also check out the business environment in order to have an idea on the future prospects and risk. The market risks must also be checked by the investors. ONGOING REAL ESTATE PROJECTS IN DUBAI At present there are numerous ongoing real estate projects in Dubai that worth millions of dollars. One of those is the Wall Street Property and it has a company profile of US$500 million market capital. Another one is Tameer's Silver Tower is a project that is based on a 700,000 sq.
ft project with 147. 5 meters high and potential of 260 offices. it is going to be of 31 floors. Similar project is Arabian Ranches that would haveTownhouses and Luxurious Villas with golf courses. These villas are divided into different segments like Terra Nova, Savannah, Alma Townhomes, Saheel, Palmera, Hattan, Miradorand, Alvorada Gazelles, Al Reem and Al Mahra. Such other colossal projects are Oryx Real Estate, Al Kaheel, Emaar's Claren Residential Tower, Discovery Garden, 'Living Legends' project, Vision Tower along with the most famous ongoing real estate projects like Dubailand and The World.