DIFC aspire to lead the exchange in the region for all types of financial papers, instruments and security bonds. The Institution is also deemed as the entrance point for global and district investments. Companies who may be part of the exchange list must have at least a market capital of $50 million. The exchange guidelines are controlled and able to allow companies to recognize the fraction of allocation that they are willing to put forward to the public. Corporate Tax is not implemented in Dubai. Only the oil producing companies and foreign banks experience corporate taxes. Personal taxes are also not implemented.
Traditions of the UAE are violated by the use of direct taxation and it is very unlikely that the said taxes would be implemented in the future. Companies that conduct business in Dubai are required to maintain financial records and accounting of their business transactions but the laws provide no detail with regards to the characterization of such records. THE REAL ESTATE BUSINESS AND THE PROPERTY LAW The property boom in Dubai can be traced back to 2002 when HRH Sheikh Mohammed bin Rashid Al Maktoum stated that freehold ownership of certain properties in Dubai was available to investors of all nationalities.
Since then several real estate related projects have been launched and sold to foreigners. They are endless list. In some instances, properties have already been completed and handed over to buyers. The Dubai emirate has become a real estate business since the announcement and this had lead investors in the country. In my opinion, the ruling party and Maktoum had done this in order to increase their funds in the government. However, the Sheikhs does not only think about the return on investments and nor do they need the lands to symbolize their power over the emirate.
Being the ruling party of the emirate, it already had given them the sovereignty over the land and the citizens of Dubai. The Law does not give foreigners the right to the land but it only gives the foreigners the right to lease the land for 99 years. This is the only way for the foreigners to invest their money in the real estate of Dubai. Prop Dubai (2006) reported in the context of real estate that a new law has been passed in the year 2006. The article 4 of the law states that UAE and GCC nationals have the right to own real property in Dubai. The law does not give any distinction between UAE and GCC Nationals.
The rights included in the UAE and GCC Nationals are the right of usufruct, freehold ownership, right of mustaha and a long lease of up to 99 years. Right of Usufruct is the right where the person has the right to use and exploit property belonging to another person. The right of Mustaha is almost the same as the right of usufruct, however, this is the right to exploit the land belonging to another person but it also includes the right to build on the land belonging to another person. This right is characterized further as a “Ground Development Lease”.
The UAE and GCC Nationals can own land anywhere in Dubai. Individuals and companies of the UAE and GCC have rights to claim for the land. However, if the company has foreign shareholders, the government would not be considered a UAE or GCC National in owning a property. An exception of these is the companies that are listed in Dubai Financial Market which are the Public Joint Stock Companies. These companies allow their shares to be bought by foreigners, however, the government still considers it as UAE or a GCC National and can own property anywhere.
Examples of these companies are Emaar and Union Properties. The Right to Lease or own a freehold title in terms of real estate is given to the nationalities other than the UAE and GCC national. This is granted and determined by the Ruler’s approval. A freeholder is considered as the absolute owner of the land and buildings comprised in his title. The person has the right to occupy and use and enjoy his property forever in perpetuity or until the holder has transferred his title to the new owner.
The heirs of the holder are entitled to inherit his title upon his death. The right shall not exceed 99 years. The real estate law of the UAE does not allow overseas businesses and individuals to own real property in Dubai. The property could only be lent or let out for the business operations and purposes. Businesses follow a comprehensive framework of legislation. Applicable laws are available for business-related deals, intellectual assets, labour and employment and other facet of business existence.
Several clauses in the New Property Law had been stated in the article according to go wealthy website (2006). The foreigners will have the right to lease or purchase the land, after gaining approval from the three master developers. The Master Developers are Emaar, Nakheel and Dubai Properties. Legalization of properties that had been purchased must be registered with the authorities. The law had also specified the different functions and responsibilities of the Department of Land and Property. The Department will determine the survey areas; approve the land and the fees and services needed.