Ownership and investment
Subsidy for development and expansion in relation to Real estate Since foreign investors are not allowed to own a property, profits from land and property which was set up up by Dubai’s former sovereign Sheikh Rashid Bin Said Al Maktoum, have kept the land’s income more secured because investors are paying them good amount of money for the lease of the place.
Authority of Dubai is keen on making changes to the region to make it a international confluence of business aspects and for that he is directed towards the issues to make Dubai a commercial city of international standards and able to understand the potential of the region. However, it is important for Dubai to develop an individual legislation as in present the city is mostly depended on Abu Dhabi in terms of legislation. Thus it would be interesting to note that Dubai has to make Abu Dhabi rapidly grant the new legislation (DDI 2007).
Laws and policies concerning ownership and investment in real estate Freehold is a concept that generally means possession and the most superior form of private property ownership. It could be mentioned that the advantage of a freeholder over a private property ownership is that the former
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Eventually, the freeholder’s heirs are entitled to inherit the title upon the death of the original holder of the title. (Prop Dubai, 2007). Foreigners are only allowed to purchase real estate properties in the freehold zones and allowed only leasehold right of use for a limited time in non freehold zones (Prop Dubai, 2007). However it should be stated that international standards are maintained for practices related to commerce and trade in the region.
Apart from that the UAE has enlisted itself as General Agreement on Tariffs and Trade signatory (GATT). This has been done keeping in mind the aspects of the highly potential economic market of Dubai. In the process 3 major federal laws were put into use. These laws were enacted keeping in view of the property rights in terms of intellectual and industrial rights. These 3 most important acts under federal laws are Law number 44, 40 and 37 and all of them are in alignment of the 1992 enactment of the Federal Laws (Land Department, Dubai, 2006).
It should be noted in this context that real estates like Dubai Silicon Oasis and Dubai Investments Park are on sale and the chief targets are the foreigners. However, these real estates are handed out in long term leases and this is a very encouraging factor for the foreign investors. Though it should be noted that in some projects involvements of foreigners in very long termed leasing system, like 99 years, are not allowed by the government.
In this context of the foreigners are highly regarded and in a different way, there are some specifications in terms of these real estate properties. Under such parameters property rights are not allowed to the holder of unregistered lease but only property rights are given. In this context inheritance is possible under unregistered lease. Furthermore any dispute would be looked after by Rents Committee, between the tenant and the landlord, if the said property is an unregistered one. (Prop Dubai, 2007).