Homeowners will need to obtain permits.
What happened? The Dubai Tourism Agency, on behalf of the ruler of the emirate, will develop new rules for the sale, promotion and management of real estate used in timeshare programs. As one of the measures, a list of all residential units involved in this scheme will be compiled, due to which the emirate intends to more fully realize the potential of timeshare, according to Gulf News.
Details. Sheikh Mohammed bin Rashid Al Maktoum, Vice President of the United Arab Emirates, Prime Minister and Ruler of Dubai, issued the directive to develop the program under Law No. 14 of 2020.
The Dubai Tourism Agency will issue timeshare rules and will also issue permits for such use of housing. The Tourism Agency, together with the Land Department and the Dubai International Financial Center, will coordinate all issues related to such activities of developers and brokers, as well as with the registration of contracts and rights to timeshare with the Land Department.
Objectives. Dubai wants to create additional investment opportunities in the real estate sector through the new law, with investors being reassured that this is being done to protect buyers’ rights. The new law, which will provide a “clear legal context” for doing timeshare business, was announced to stimulate the tourism and real estate sectors, encourage investment in vacation housing and provide alternative accommodation options for tourists and travelers.
Rules. All individuals and legal entities involved in timeshare business in Dubai will have to switch to operation under the new law within six months from the date of its entry into force. At the same time, the director general of the Dubai Tourism Agency has the right to extend this period if necessary.
The timeshare permit will be valid for one year, after which it will need to be renewed. The tourism agency will be entitled to issue permits for up to four years based on the owner’s requests. The new law also details the rights of the owners of timeshare objects and the conditions for terminating or transferring the contract.
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