In a significant move to bolster the real estate sector, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, has issued Resolution No. 36 of 2024. This Resolution mandates forming a Committee for Real Estate Investment Funds (“Committee”) to enhance governance, compliance, and support within the sector.
Governance Framework and Reporting
The newly established Committee will follow stringent governance protocols as outlined in Decree No. 1 of 2023. This Decree governs councils, boards, and committees affiliated with the Government of Dubai, ensuring a standardised approach to governance across various governmental bodies. It includes mechanisms for holding meetings, decision-making processes, confidentiality protocols, and the specific duties and obligations of the Committee’s chairman, members, and rapporteur.
One pivotal aspect of this Resolution is the requirement that the chairman of the Committee submit regular periodic reports to the Executive Council. These reports will detail the Committee’s progress and accomplishments, ensuring transparency and accountability in its operations.
Role of the Dubai Land Department (DLD)
The Dubai Land Department (DLD) is tasked with providing administrative and technical support to the Committee. This support is crucial for the Committee to perform its duties effectively under Decree No. 22 of 2022, which grants privileges to Real Estate Investment Funds in Dubai. The DLD’s involvement underscores the collaborative effort required to maintain robust regulatory oversight and support for real estate investment activities.
Compliance Verification
A significant responsibility of the Committee is to ensure that real estate investment funds continuously meet the requirements specified in the Decree. This includes verifying the value of real estate assets owned by the funds. The verification process will be based on annual financial reports audited by an external auditor, which are then submitted to the entity responsible for licensing and regulating the funds. This stringent verification process is designed to maintain the integrity and reliability of real estate investment funds operating within Dubai.
Cooperation from Government Authorities
The Resolution also calls for full cooperation from all government authorities in Dubai. These authorities are urged to work closely with the Committee, its subcommittees, and any working teams formed under its mandate. This cooperation involves providing necessary information, documents, statistics, and studies to empower the Committee to perform its tasks and exercise its powers effectively. Such a collaborative approach is essential for the Committee to function efficiently and achieve its objectives.
Implementation and Future Steps
The chairman of the Committee is authorized to issue the necessary decisions to ensure the seamless implementation of the resolution. These decisions will facilitate the practical application of the Resolution’s provisions, thereby operationalising the Committee’s mandate.
Implications for the Real Estate Sector
Establishing this Committee is a strategic initiative to strengthen the regulatory framework governing real estate investment funds in Dubai. The Resolution seeks to enhance investor confidence and promote sustainable growth within the real estate sector by ensuring rigorous compliance and governance standards.
The Committee’s role in continuously verifying compliance with the Decree’s requirements is particularly noteworthy. It highlights the Dubai government’s commitment to maintaining high standards of accountability and transparency in real estate investments. This is expected to attract more local and international investors, thereby contributing to the overall growth and stability of the real estate market in Dubai.
Furthermore, the support from the DLD and the mandated cooperation from other government authorities signify a unified approach towards achieving these objectives. This collaborative effort will likely streamline processes, reduce bureaucratic hurdles, and foster a more conducive environment for real estate investments.
Conclusion
Resolution No. 36 of 2024 marks a significant step forward in the governance of real estate investment funds in Dubai. By establishing a dedicated Committee with robust governance and compliance mechanisms, the Resolution aims to ensure the integrity and sustainability of the real estate sector. The collaborative framework involving the DLD and other government authorities further strengthens the potential for successful implementation. As Dubai continues to evolve as a global real estate hub, such initiatives are crucial in maintaining investor trust and driving long-term growth.