Dubai Land Department (DLD) has launched the REIT privileges registry, which is part of the Dubai Economic Agenda D33. This new initiative is aimed at bolstering Dubai’s global standing as a real estate investment hub and attracting both local and international real estate investment trusts (REITs) to register.
The primary objective of the REIT privileges registry is to offer incentive benefits that will encourage REITs to consider investing in projects throughout Dubai. By doing so, it is expected to boost market investment and generate long-term capital returns for shareholders. This aligns with the broader goals of the Dubai Economic Agenda D33, which focuses on attracting foreign investments and increasing private sector involvement in development projects.
To register, eligible trusts must fulfil the necessary conditions and visit one of the approved real estate registration centres designated by the DLD. Detailed registration requirements can be found on the Dubai Land Department’s website. This registration process will become the standard procedure moving forward.
Registered trusts will enjoy several notable benefits. One key advantage is the ability to benefit from real estate fees. In the case of establishing a real estate trust, a fee of Dh50,000 is collected for transferring the ownership of each real estate property to the trust. If the trust acquires and registers an asset in its name, a 2% registration fee is levied. Additionally, if the trust registers a usufruct or long-term rental right, it can benefit from a 2% charge based on the market value. It’s important to note that these fees are only applicable when the real estate disposal is related to the trust’s properties and not when shareholders sell their real estate shares.
Moreover, trusts registered in the concession register will have the right to own property located outside areas restricted to non-citizen ownership. The Real Estate Trusts Committee, established in accordance with 2022 Decree No. 22, will review and approve such ownership rights. Real estate investment trusts may enjoy unrestricted absolute ownership or lease the property for a maximum period of 99 years.
Sultan Butti bin Mejren, the Director General of the Dubai Land Department, emphasized that this initiative reflects the collaborative efforts of the Dubai Land Department, government partners, and private sectors to support the objectives of the Dubai Economic Agenda D33. The aim is to attract foreign investments and increase private sector participation in development projects.
Source: Gulf News
