Dubai International Financial Centre (DIFC), the leading financial hub in the Middle East, Africa and South Asia (MEASA) region, has signed a Memorandum of Understanding (MoU) with the Dubai Land Department (DLD) to allow entities based in the Centre to purchase and register properties with the DLD.
The strategic agreement, signed by H.E. Essa Kazim, Governor of DIFC, and H.E. Sultan Butti Bin Mejren, Director General of the Dubai Land Department, will simplify the land owner registration process with DLD for DIFC-based companies, partnerships, foundations, Real Estate Investment Trusts (REITs) and real estate funds. This innovative approach will be a catalyst to encourage greater institutional investment into Dubai’s real estate sector, which remains one of the fastest growing segments of the emirate’s economy with approximately 20,000 real estate transactions worth AED 77 billion recorded in the first quarter of 2017, a 45% increase compared to the first quarter of 2016.
H.E. Essa Kazim, Governor of DIFC, said: “This agreement significantly benefits entities operating within the Centre, and the co-operation between DIFC and the DLD is key to stimulating growth and investment activity in Dubai’s real estate sector. To date the majority of real estate investment has predominantly been driven by individuals – by providing a platform that allows companies and funds to more easily invest in this asset class, we will undoubtedly see a shift towards greater institutional investment in the market.
“This will also substantially benefit families who wish to do their private wealth and succession planning within the robust legal and regulatory framework offered by the DIFC, which remains a key focus area for the Centre, in line with our 2024 Strategy,” he continued.
H.E. Sultan Butti Bin Mejren, Director General of the Dubai Land Department, said: “We are pleased to have signed this agreement with Dubai International Financial Centre, as we work together to support the real estate sector and facilitate investment procedures for companies and investment corporations. We are keen on collaborating and coordinating with all government entities to achieve the vision of our leadership and realise the main pillars underpinning the Dubai Plan 2021, in order for the emirate to become the most attractive investment destination globally, generating wealth and ultimately boosting the happiness of its residents.”