Wednesday, June 20, 2007

New property ownership law likely in Fujairah

Fujairah, in an initiative to emulate Dubai, plans to pass laws that permits foreigners to purchase homes for the first time, said an official.

According to the technical advisor to the government, Salem Abdo Khali, the legislation, when it comes into effect, is likely to trigger the development of a 4 kms land reclamation project, on the south of Fujairah's port.

Dubai was the first emirate to permit foreigners to purchase property in designated areas during 2002, which brought about an economic boom.

Currently, investments in Fujairah are on the rise due to its ideal location outside the Gulf and the narrow passage of Hormuz, through which about 17 million barrels of oil are transported everyday.

Among the billion dollar worth projects that are set aside for Fujairah, a few include a liquefied natural gas storage hub, an overland pipeline to reroute oil exports from Abu Dhabi and expanding the handling capacity of the port.

Construction of a new freeway could actually cut down on the driving time to the emirate by over more than half an hour, and would encourage more Dubai investors to invest in properties at Fujairah.

Khali said "With the road, we will be easily linked to demand for real estate from Dubai." The details of whether the new laws of foreign ownership would be extended to the freehold, is yet to be known.

However, Khalil mentioned that the plans for real estate land reclamation, in addition to more industrial land planned to the north of the port, are at their early stages. He added, that the new development will comprise of town houses, villas and apartments.

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