Tuesday, June 26, 2007

Abu Dhabi will shortly clarify the regulations for real estate sector

According to a top UAE law firm, the regulations currently drafted by the Abu Dhabi Land Department, clarifies the rules and procedures in the booming real estate sector in the emirate.

Several laws have been issued since the year 2005, which deal with property registration and ownership for the UAE and GCC nationals, and foreigners in Abu Dhabi.

Mohammad Kamal, Property Lawyer, at the Dubai-based Al Tamimi and Company, however, says that these were just "skeleton frameworks" which heavily depended on added regulations, termed as implementation regulations, to fill in grey areas.

Recent discussions between the Abu Dhabi Land Department and Al Tamimi, revealed that implementation regulation regarding Law No.3, concerning registration procedures for land in the name of UAE nationals have been already drafted and sent to the Executive Council of the emirate for approval.

Meanwhile similar regulations for Law No.19 were issued during 2005, to define the ownership rights of UAE, GCC and foreign nationals. This is in draft stage.

Kamal said that the continued activity and interest in the Abu Dhabi property market will serve as a catalyst to speed up the process of implementation of regulations, which would ultimately clarify legal issues that arise, particularly for GCC and foreign nationals.

As per Law No.19, UAE nationals have the right to own property anywhere in Abu Dhabi, but the ownership for GCC nationals is restricted only to certain designated investment zones.

The law permits GCC and foreign nationals the right to own apartment units or entire floors in investment zones, but foreign nationals are allowed to only own the surface rights, not the underlying land on which the building is located.

For owning land outside the investment zone, non UAE-nationals will have to obtain special allowance from Abu Dhabi Executive Council.

Kamal said that the Land Department will be adding Lulu Island, Saadiyat Island and the High Corporation for Specialized Economic Zones to a list of investment zones which also includes the Al Raha beach and the Al Reem Island.

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