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DIFC Authority extends consultation period on subject of freehold land ownership in the DIFC
- United Arab Emirates: Sunday, October 29 - 2006 at 15:10
- PRESS RELEASE
Due to extensive public interest, the Dubai International Financial Centre Authority (DIFCA) today extended the consultation period for the DIFC Real Property Law 2006 and the Strata Title Law 2006 for an additional 30 days.
The previous consultation period ran from 13 August until 13 September, 2006.
Real Property Law
The Real Property Law guarantees ownership of freehold land and interest in land within the DIFC. It will allow companies and individuals to hold freehold ownership of real estate within the Dubai International Financial Centre.
The Law is based on the underlying principles of English common law, but also incorporates the Torrens system of land registration, well known in countries such as Australia, New Zealand, Canada and Singapore. Under the Real Property Law, land transactions are registered in a central register administered in the DIFC. Once registered, the Law certifies them to be fully effective. Unlike some other systems of land registration, title interests registered under the Real Property Law are "indefeasible". In practical terms, this means that persons buying real estate in the DIFC, or, lending on the security of real estate in the DIFC, or taking a lease of real estate in the DIFC, can be assured that their investment is backed by the full protection of the Law.
Strata Title Law
The Strata Title Law establishes a system of guaranteed freehold title to units in buildings in the DIFC. It is based on the system originally developed in Australia, but now in use in many countries around the world, including Singapore.
The Law combines the benefits of guaranteed title under the Real Property Law with an administrative structure designed to handle the day-to-day management of buildings. It will help overcome the complexities of co-owners association constitutions, master community declarations, and the like, by introducing a simple but comprehensive system of rights and responsibilities. It incorporates many of the key concepts of existing co-owners association arrangements already in use in Dubai, but simplifies them and adds a title guarantee.
Extending the consultation period for the DIFC Real Property Law 2006 and the Strata Title Law 2006 fulfils the assurances made by DIFCA to developers, investors and clients alike, concerning real property rights within the DIFC jurisdiction. During the initial consultation period, over 200 submissions were received. All were considered, and many were incorporated into the revised versions of the laws. The result will be an internationally proven system of and registration and real property ownership, in line with the DIFC's mission, vision and values as an international financial centre of first order.
Once the extended consultation period is complete and all relevant comments have been incorporated in the new laws, they will be sent for enactment by the Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum.
These laws will apply exclusively in the jurisdiction of the DIFC.
Comments can be sent attention to the DIFC Authority's Chief Legal Officer, Dean A. Ferris. The laws may be accessed on the DIFC Authority website at http://www.difc.ae/laws_regulations/proposed/proposed_laws.html, which includes the process whereby comments on the laws may be submitted. Due to the Eid holiday, the consultation period has been extended to 29th November 2006, after which date the proposed legislation will be presented to the Ruler of Dubai for enactment in accordance with Dubai Law No. 9 of 2004.
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Posted by Anne-Birte Stensgaard, Senior News Editor
Sunday, October 29 - 2006 at 15:10 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited
without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Tue Jan 16 2007.
Mark Bennewith
Tel: +971.4.362.2450
Amira Abdulla
Tel: +971.4.362.2433
Dubai International Financial Centre
The Dubai International Financial Centre
The Dubai International Financial Centre (DIFC) is an onshore hub for global finance. It bridges the time gap between the financial centers of Hong Kong and London and services a region with the largest untapped emerging market for financial services.
In just under two years, over 270 firms have registered at the DIFC. They operate in an open environment complemented with world-class regulations and standards. The DIFC offers its member institutions incentives such as 100 per cent foreign ownership, zero tax on income and profits and no restrictions on foreign exchange. In addition their business benefits from modern infrastructure, operational support and business continuity facilities of uncompromisingly high standards.
The DIFC is made up of the following core bodies:
1. The DIFC Authority (DIFCA) - Responsible for the Companies and Security Registries and attracting financial as well as non-financial institutions to set up in the DIFC. The DIFC Authority is also responsible for developing the financial services industry. (www.difc.ae)
2. The Dubai Financial Services Authority (DFSA) - An independent, unitary regulatory authority, responsible for the regulation of all DIFC operations. Its principle-based primary legislation is modeled on that used in London and New York and its regulatory regime operates to standards that meet or exceed those in major financial centers. (www.dfsa.ae)
3. The DIFC Courts - An independent court system set up to uphold the provisions of DIFC laws and regulations, the courts provide comprehensive legal redress in civil and commercial matters within the DIFC. The DIFC Courts system is especially designed to deal with all of sophisticated transactions that will be conducted within DIFC. The DIFC Court laws, based on the common law, not only sets out the jurisdiction of the court but also provides for a dispute resolution services, including arbitration and mediation, thus allowing for the independent administration of justice in the DIFC. ( www.difccourts.ae)
4. DIFC Investments - The creation of DIFC Investments will result in the allocation to it of all non public administration activities previously carried out by DIFC Authority. This will include amongst other things all commercial and other activities such as the operation and management of any current and future subsidiaries, the development of the centre's investment strategy and relevant policies and any other strategic investments or alliances which will further the goals and objectives of the Dubai International Financial Centre and contribute to the fulfillment of the Centre's vision. Some of the companies and organizations that DIFC Investments owns include:
a.) The Dubai International Financial Exchange (DIFX) The DIFX is the region's first international financial exchange for equities, bonds, Islamic products, funds, index products and (subject to regulatory approval) derivatives. The target areas of the DIFX for seeking issuers include the Middle East and North Africa, as well as South Africa, Turkey and the Indian sub-continent. The regulator of the DIFX is the Dubai Financial Services Authority. The DIFX is located in the Dubai International Financial Centre (DIFC) and its owner is the DIFC Authority. (www.difx.ae)
b.) Hawkamah - the first Institute for Corporate Governance in the region is being set up by a group of international institutions, including the Dubai International Financial Centre (DIFC), Organisation for Economic Cooperation and Development (OECD), UAE Ministry of Finance and Industry, Centre for International Private Enterprise (CIPE), International Finance Corporation (IFC), the Union of Arab Banks (UAB), Dubai School of Government (DSG), Young Arab Leaders (YAL), and the Institute of Management Development (IMD). (www.hawkamah.org).
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