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UAE plans unified freehold visa |
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1/12/2009 4:11:33 AM |
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The UAE federal government is reviewing the issue of freehold property visas linked to foreigners' ownership of properties in different emirates, a top Dubai Government official told the media on Saturday.
"The Advisory Council [of Dubai Government] has submitted a proposal to the Federal Government on the issue of property-linked visas to review," Nasser Bin Hassan Al Shaikh, director-general of Dubai Government's Department of Finance, said at a media briefing on the sidelines of the government's 2009 budget announcement.
"Since a number of emirates have developed their own freehold visa arrangements, there are thoughts at the federal level to streamline the process and announce a unified guideline for all the emirates."
Dubai Government created the Advisory Council in October last year, to assess the impact of the global financial crisis on Dubai's economy, which has been hit due to an outflow of capital, estimated to be well above Dh200 billion.
He said there could be a new law guiding this soon, without giving any timeframe. When asked if he expects a positive resolution, he replied, "Yes, I hope so."
The freehold visa issue has come to light in recent months when major master developers NakheelNakheelLoading... and EmaarEmaarLoading... - who have been helping foreign buyers of freehold properties to get three-year renewable residence visas - had stopped facilitating them last year, prompting investor outcry.
Experts have welcomed the move, saying the country needed a unified regulation on this and a streamlined procedure to restore investor confidence.
"It is reassuring. It is positive news and will bring a lot of faith and confidence in the market," Sudhir Kumar, managing director of Realtor's International, a property consultancy.
"The matter of freehold visas has been an issue of major concern for real estate investors. This addresses the concern. With this, the government is showing its strength and resilience in the time of crisis."
Dubai's master-developers have, since 2002, been pledging "freehold visas" to attract foreign investors to the emirate's real estate sector, in the absence of a proper rule to dictate this.
Since then, they have facilitated this to lots of buyers having a special arrangement with the Dubai Naturalisation and Residency department. Subsequently, a number of master-developers in Ajman and Ras Al Khaimah followed suit, attracting massive investment into their real estate sector.
Five out of the UAE's seven emirates now have designated areas where foreign nationals can buy and own properties on a freehold and leasehold basis. Sharjah does not allow non-Arabs to own properties on a freehold basis.
Abu Dhabi allows foreigner to own what it calls "surface property" and not the land on designated areas. However, there is no federal law to regulate the freehold property market and visa issuance linked to property ownership to foreigners.
As per the UAE constitution, land of each emirate belongs to Rulers and they decide the ownership, usage and allocation of the land.. |
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Source: Zawya.com |
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