In the new decree, Dubai will offer benefits to real estate funds that buy commercial real estate

The Royal Decree of Dubai offers incentives for real estate funds investing significant amounts of money in the regional commercial real estate market.

The decree prescribes that these funds must invest at least 50 million dirhams in real estate in order to be eligible for benefits. It was published by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Buildings must be classified as "commercial" in accordance with Decree No. (4) of 2010.

According to the Decree, the Dubai Land Department will create a «Register of Real Estate Investment Funds», which will also specify the criteria and steps for inclusion in the Register.

The Securities and Commodities Authority and the Dubai Financial Services Authority, the regulatory body of DIFC, must issue licenses to funds wishing to be included in the Register.

When the foundation applied for inclusion in the Register, the value of its real estate should have been 180 million dirhams or more. At the time of application, the funds' ability to trade on the Dubai financial markets should not be suspended.

In accordance with the Decree, a «Committee on Property Investment Funds» should be established. Its purpose will be to indicate which objects and assets funds are allowed to acquire directly or lease for up to 99 years.