Dubai Land Department (DLD) has announced a number of new initiatives that aim to support the emirate’s economic diversification strategy by establishing Dubai’s real estate sector as the world’s leading property destination. The initiatives will see DLD developing a new mortgage and finance law in order to stimulate investment and streamline financial mechanisms in the real estate market.
DLD’s initiatives were presented to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, as part of a series of other initiatives that aim to stimulate economic growth. The Executive Council will implement the initiatives with the concerned entities based on the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council.
The main objective of the initiatives is to develop Dubai’s mortgage law to attract foreign investors and public joint stock companies listed on the NASDAQ market. They will also encourage alternative financing methods and enable investors to diversify their investments in the real estate sector, catering to investors with small and medium-sized portfolios.
His Excellency Sultan Butti bin Mejren, Director General of DLD, commented: “This initiative is a direct translation of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to achieve sustainable growth in the real estate sector. By developing Dubai’s mortgage law, we will help real estate organisations to operate in perfect harmony and enhance their smart resources to provide the best possible services to customers, support the GDP, and create strong new investment tributaries.”
Bin Mejren highlighted that DLD remains committed to pursuing best practices in the real estate sector and attracting both Islamic and private real estate investment portfolios. Alongside its mortgage law initiative, DLD has also submitted a proposal to cooperate with public joint stock companies to encourage alternative financing methods.
DLD seeks to attract foreign investment property portfolios in line with the directives of the Government of Dubai to position Dubai as the world's leading investment destination and keep abreast of global economic changes.
DLD will achieve this mission by strengthening its close relations with major international institutions, intensifying cooperation and external visits, harnessing all possibilities to facilitate investment activities, and enabling investors of all sizes to diversify their investments in the real estate sector.
Bin Mejren added: “The implementation of this initiative will help to stimulate real estate investment and raise financial and economic efficiency. We hope that this will enhance economic growth, improve Dubai’s business environment by making it more efficient and attractive, develop competitiveness, encourage innovation and efficiency, and strengthen Dubai's position globally.”
The development of Dubai’s mortgage and finance systems will involve issuing a real estate legislation package that will have a positive impact on supporting the development of the sector. It will also strengthen partnerships between the public and private sectors to develop mortgage finance systems and mechanisms, leading to the identification of mortgage engines in Dubai’s real estate market.
On a larger scale, the initiatives stress the importance of financial stability, economic diversification, government spending and the Dubai Plan 2021, and will allow the real estate market to mature by creating an enhanced property investment environment that is transparent and safe for all investors.
DLD hopes that the dissemination of these regulations in the market will be a key factor in the definition of legislation and laws that protect the rights of all investors and adopt modern technologies. Through regular transactions, mortgage procedures in Dubai will be highlighted, ultimately leading to greater confidence in mortgage registrations.
Bin Mejren concluded: “This strategy will be fruitful in the near future. The economy will have multiple sectors to ensure its sustainability, especially in light of the growing efforts of various government entities to work in perfect harmony to develop human cadres and qualify them to the highest standards. We look forward to being an active contributor to the sustainability of Dubai’s economy and enhancing its ability to meet challenges and achieve sustainable growth as one of the world's best economies.”
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