In his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed Bin Rashid Al Maktoum has issued Law No. 4 of 2019 pertaining to Dubai’s Real Estate Regulatory Agency, Rera.

The new law includes restructuring the legal provisions of the agency, which was established pursuant to Law No. 16 of 2007. According to the new Law, the objectives of Rera include contributing to the development of Dubai’s real estate sector within an integrated system of regulatory and monetary procedures and enhancing the sector’s contribution to Dubai’s economy. Furthermore, Rera will work to provide a secure environment for real estate projects in order to protect the rights of developers and investors, implement new projects and programmes that enable them to explore new real estate opportunities and promote professional and ethical standards in the industry.

Pursuant to this Law, Rera is responsible for regulating and overseeing real estate development escrow accounts; accrediting financial institutions that are qualified to manage real estate development escrow accounts; and approving regulations that govern development, brokerage and management of real estate including joint property.

Rera also monitors real estate advertisements published in media outlets in the Emirate; develops and launches awareness programmes in collaboration with the Dubai Real Estate Institute to educate the public about their rights and responsibilities; and prepares and updates policies designed to balance supply and demand.

Under this Law, the Chairman of The Executive Council of Dubai will appoint the CEO of Rera and will also issue the regulations and resolutions required for the implementation of the provisions of this Law that substitutes Law No. 16 of 2007. Dubai Land Department will replace Rera in registering real estate rental contracts and regulating the relationship between property owners and tenants and any other matter related to real estate rental contracts.

Any provision in any other legislation will be repealed to the extent that it contradicts the provisions of this Law. This Law shall be effective from the day of issuance, and shall be published in the Official Gazette.

Meanwhile, a Higher Real Estate Planning Committee has been established recently in Dubai to bring about a right balance between supply and demand, avoid launching similar real estate projects and ensure projects add real value to the national economy.

Membership of the committee includes the General Secretariat of the Dubai Executive Council, Dubai Land Department and semi-government development companies include Investment Corporation of Dubai, Wasl Properties, Dubai Properties, Emaar, Meraas and Nshama, Nakheel, Meydan, Dubai Silicon Oasis Authority, Dubai South and Dubai Multi Commodities Center.

The committee aims to regulate the real estate sector in Dubai and develop a clear and deliberate strategy to achieve an added value to real estate projects in the emirate. This is to enhance the competitiveness of the real estate sector as a whole and highlight its attractiveness as a key driving force to Dubai’s economy, which is witnessing steady progress in all sectors.

It will also work to consider the needs of the real estate market in a comprehensive manner, to ensure that real estate projects are not duplicated, and to avoid competition among big developers to small private investors. The committee will also work to ensure the uniqueness and excellence of new mega projects to generate a positive return on the macroeconomic of the emirate. The Chairman of the Committee shall have the right to add to or cancel membership of the committee as required.

The committee will assess the current situation of the real estate sector at all levels in Dubai, study the needs of the market, evaluate all future real estate projects, develop an integrated plan for the real estate sector to regulate and control the pace of work on projects, and achieve a balance between supply and demand. It will also hint real estate developers to develop new and innovative projects focusing on quality rather than quantity, and will achieve the economic objectives of the emirate within a comprehensive framework that supports various vital economic sectors within an integrated development vision.

Sheikh Mohammad’s move comes in line with the letter of the new season in which he sent a strong message to all ministers, officials and leaders in the UAE. He highlighted six significant guidelines need to be taken into account by ministers, officials, leaders and Emiratis.

It also come one day after Sheikh Mohammad chaired a cabinet meeting in which he approved the setting up of a committee to be tasked with implementing and following up the six guidelines.

WAM