Dubai Government issues a new law on Musataha rights over Commercial & Industrial Real Estate
Updated: Aug 5, 2022
Government of Dubai has issued Decree No. 23 of 2022 (the “Decree”) to control the granting of Musataha rights in the Emirate of Dubai. The objective of the Decree is to regulate & control the use of commercial and industrial land in the Emirate and to enhance investments in its real estate sector with promising returns for investors.
The Decree applies to all commercial and industrial land owned by the Government of Dubai as well as any entities wholly or partially owned by Government of Dubai. The Decree sets out legal rights in addition to the rights granted under existing provisions of the UAE Civil Code.
Key Developments under the Decree:
Among a number of other provisions, the Decree stipulates the following:
the Dubai Land Department (“DLD”) shall be the competent authority for implementing the Decree and shall assume the duties and powers including issuing standardized rules related to proper and optimal use of said lands;
the DLD shall be the nominated supervisory authority for any projects developed on said lands;
the DLD shall be authorized to conduct inspections and control Musataha rights in coordination with Dubai Municipality and to verify the extent of all parties compliance under the Musataha as well as any legislation in force; and
the DLD shall be authorized to consider grievances and lawsuit between any parties to the Musataha contracts.
The above developments are a positive result for Dubai real estate market as they provide a framework for commercial use of Government Lands with clarity for investors and government institutions on use of Government Lands with Musataha rights.
The Decree comes into force on the date of its publication in the Official Gazette on 22 July 2022.