UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva, Sean Cope and Marta Almeida, DLA Piper Middle East LLP
Granted Land Land may also be “granted” by the rulers of each Emirate to Emirati citizens or companies owned by Emiratis. The grant of such land can be revoked by the ruler at any time and is sub- ject to obligations to develop such land and to restrictions on its use and disposal. 2.2 Laws Applicable to Transfer of Title The following federal laws are relevant: • the Civil Code; and • Federal Law No (18) of 1993 on commercial transactions, as amended (the “Commercial Code” ). Each Emirate has its own laws and regulations governing the transfer of title. 2.3 Effecting Lawful and Proper Transfer of Title Registration of Transfers All transfers of land in Abu Dhabi and Dubai must be registered. In Dubai, this may be done via the Dubai Land Department (DLD) portal or in person at one of the trustee offices of the DLD, while in Abu Dhabi it is done at the Department of Municipalities and Transport (DMT). The DIFC and ADGM have their own system of land registration and maintain their own regis - ters. Certain other free zones maintain their own register of real estate interests, but this does not negate the requirement to register land transac - tions at the onshore land register. Off-Plan Sales Contracts In Abu Dhabi and Dubai, contracts for the sale of real estate that is being developed (ie, off- plan) must be registered on an interim register.
In Dubai, nationals of the Gulf Cooperation Coun - cil (GCC), UAE-incorporated companies wholly owned by them and UAE-listed and public joint stock companies may have absolute ownership of real estate. All other nationalities are only per - mitted to own real estate in areas designated for foreign ownership. Usufruct and Musataha Interests A usufruct interest is a right in rem in favour of the grantee to use and exploit the property of another, provided the property remains in its original condition. A musataha interest is a type of usufruct that confers upon the grantee the right to build upon the land of another. In Abu Dhabi, both usufruct and musataha rights can be held by UAE nationals and UAE-incorpo - rated companies wholly owned by them (without restriction) and by non-UAE nationals in desig - nated investment areas only. In Dubai, both usufructs and musatahas can be held by GCC nationals and UAE-incorporated companies wholly owned by them, but by non- GCC nationals in designated areas only. In all cases, usufructs are restricted to a maxi - mum term of 99 years and musatahas to a maxi - mum term of 50 years (renewable once in Abu Dhabi). Leasehold Interests Generally, leasehold interests in the UAE are treated as personal rights between two parties and not as real rights. An exception to this is leases of 25 years or more in Abu Dhabi and leases of ten years or more in Dubai, which are each considered as (and can be registered as) real rights.
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