Latest News

CONNECT, NOW.
We understand the importance of availability, and we act on it.

New Decree Allows Mortgaging of ‘Granted Land’ in Dubai

24/11/2016

“The whole point of granting the land is not to make the ¬local rich but to develop the city.”

‘Granted land’ is defined as property owned by the Dubai government which is given to Emiratis either for residential, commercial or industrial purposes. The holder of this particular type of land cannot sell it but it can be inherited and converted to freehold after payment of a percentage of its value to the government.

According to Mohamad Khodr Al Dah, director of the Dubai Land Department’s (DLD) technical affairs division, for a long time, banks have been reluctant to lend to Emiratis using such land as mortgage collateral because of recoverabil¬ity and security of tenure issues. This is why a new decree was issued by UAE Vice President and Prime Minister and Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum allowing the mortgaging of granted land in Dubai. This decree was summarized as follows by the director of DLD’s technical affairs division: “What it says is that we, the government, allow the banks to mortgage, we allow you to take a loan on it, we allow you to benefit financially from the plot...” Therefore, a beneficiary of granted land may mortgage the land to any bank or financial institution registered in Dubai. However, the main condition is that the money borrowed from the bank will have to be spent on the specific granted land which was mortgaged. The decree also states that Dubai’s Civil Court is responsible for settling any disputes arising from the mortgage.

The new ruling should spur further development across the Emirate of Dubai. According to Mr. Al Dah, “the whole point of granting the land is not to make the ¬local rich but to develop the city.”

You might also like...
Borrowers and Credit Card Holders Beware!
On 4 May 2022, the Central Bank of UAE (CBUAE) raised the Base Rate applicable to the Overnight Deposit Facility (ODF) by 50 points. This decision was influenced after the U.S. Federal Reserve raised its target rate by 50 points in the face of inflation.
read More
Small Business Owners, Rejoice!
The UAE has always been an attractive hub for business owners from all over the world due to its tax-free commerce status. The government is now focusing on new beginnings and has set new rules to help local and small businesses thrive.
read More
Looking to Set-Up your Business? Don't Miss this Opportunity!
Check out this game-changing package which benefits investors in terms of paying the fees for their business setup on an ongoing monthly basis. Potential investors are required to sign a lease contract and move their operations into the free zone before the end of January 2022 to avail the offer!
read More
SEE ALL INSIGHTS
Thanks, got it!
Something went wrong, please try again.

Use our online calendar to set up your own appointment and connect to an elawyer for a consultation.