Dubai issues decree to regulate the use of commercial lands

Dubai issues decree to regulate the use of commercial lands

‘Musataha’ agreement allows holder rights to deal in land for a period of 35 years

By WAM Published: Wed 20 Jul 2022, 8:01 PM

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Decree No. (23) of 2022 regulating the grant of ‘Musataha’ rights on commercial lands in Dubai.

The Decree regulates the use of commercial lands in Dubai by granting the right of ‘Musataha’ to develop real estate projects. The new legislation forms part of the emirate’s efforts to consolidate Dubai’s status as a preferred global real estate investment destination.

As per the Decree, the ‘Musataha’ agreement creates a real property right that entitles its holder to construct a building or invest in, mortgage, lease, sell, or purchase a plot of land belonging to a third party for a period of up to 35 years.

The agreement can be extended to a maximum of 50 years. The request for renewal has to be submitted two years ahead of the agreement’s expiry date.

The holder of the agreement has to abide by a number of rules and regulations. These include not changing the use of commercial land without obtaining the prior approval of