DUBAI: According to Amira Sajwani, general manager of sales and development at Damak Group, the new law on incentivizing property investment funds will encourage foreign capital.
The ruler of Dubai, Sheikh Mohammed bin Rashid Al-Maktoum, enacted a new law on 19 July to promote the development of real estate investment funds in Dubai.
Emirates Media Agency, also known as WAM, reported that as part of efforts to establish the emirate as a global destination for investment in real estate, the law provides certain privileges to real estate investment funds.
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The law provides certain privileges for real estate investment funds.
There is also a dedicated committee created by the new law to identify which sectors and assets the fund can invest in.
Investopedia defines a real estate fund as a type of mutual fund that invests primarily in securities offered by public real estate companies.
On the other hand, a real estate investment trust invests directly in income-producing real estate and is traded like a stock.
All real estate investment funds covered by the law are licensed and regulated by government authorities, private development zones and free zones, such as the Dubai International Financial Center, WAM said.
Also, investors will be entitled to benefits that will help them invest in the real estate market of the Emirates.
So how will the country and real estate investors benefit from the new law?
Hosni Al-Bayari, president and founder of D&B Properties, said the new law will encourage investors and real estate funds to enter the market while increasing transparency and governance.
In addition, it will contribute to Dubai’s private development and regulating free zones, Al-Bayari said.
As a result, high-net-worth individuals are flocking to Dubai, and this law will open up new areas for personal and business relocation, remarked Al-Bayari.
WAM said the register is open to applicants with real estate worth 180 million dirhams ($49 million) or more.
Damak K Sajwani said that “creating a register for property investment funds gives added value of transparency which is always good to attract more foreign entities to invest here.”
As she pointed out, the new law follows recent economic and social reforms that have increased Dubai’s appeal.
WAM said there is also a dedicated committee created by the new law to identify what sectors and assets the fund can invest in.
Removing liquidity and asset management risks can help real estate investment trusts attract 15 percent more investments and support liquidity and market growth, said Alexey Galtsev, founder and CEO of Realist, a personal artificial intelligence firm on real estate investing. Will get
WAM said the Dubai Land Department, the Registrar of Real Estate, will appoint an expert to evaluate properties owned by the fund.
With real estate as one of Dubai’s focus areas, the move comes as part of efforts to attract foreign investors to the city.
Galtsev also said that the law favors significant funding in Dubai real estate and opens the UAE market to large investment capital investments.
Al-Bayari concluded that the UAE has recently been recognized as the preferred destination for millionaires to emigrate. This initiative will take Dubai higher in the list of rich investors.