Decree on mortgaging granted lands in Dubai issued
Dubai decree defines the granted lands as the lands owned by the government and granted to the beneficiary
Published: 18:27 November 15, 2016 Gulf News
Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, issued Decree No (31) of 2016 on Tuesday on mortgaging granted lands in Dubai.
The Decree defines the granted lands as the lands owned by the government and granted to the beneficiary for residential, commercial or industrial purposes.
The Decree states that the beneficiary may mortgage the land to any bank or financial institution registered duly in Dubai.
The mortgage is legally binding for all concerned parties if the monies arising from the pledge of the commercial and industrial land will be invested to achieve the purposes of the original grant; if the monies arising from the pledge of the residential land will be invested in maintaining, expanding or replacing the building and the pledge is registered concerning mortgages in the Emirate of Dubai.
According to the Decree, the Dubai Land Department will not register any mortgage unless all these conditions are satisfied.
Director General of the Dubai Land Department Sultan Butti Bin Mejren said that the Decree is a key legislative initiative that will have a positive impact on the real estate market.
He further said it will help developers and owners obtain financing from trusted financial institutions and promote the growth of investments in the real estate sector. Bin Mejren also said that the Decree addresses many questions of investors and responds to their needs.
It also gives the Dubai Land Department further mechanisms to regulate the real estate market.