DLD and RERA Introduce New Service For Real Estate Stakeholders in Dubai

The Dubai Land Department (DLD), through the Real Estate Regulatory Agency (RERA), has launched an innovative electronic system called Mollak, an innovative, electronic web-based service developed by RERA for the purpose of registering Owners’ Associations and the Management Companies forming part of a Jointly Owned Property.

Mollak, which means “owner” in Arabic, is developed specifically to assist real estate stakeholders, including property developers, owners, investors, Owners Associations and Association Managers to comply with all RERA regulations and management requirements in a simple and organized manner. This is in line with the vision DLD has for Mollak, which is to position Dubai as the world’s premier real estate destination and a byword for innovation, trust and happiness.

Mollak simplifies the system of payments for Service Charges (also known as maintenance charges or operational charges for the Owners Association). The system will operate in a manner similar to the operation of an escrow account, increasing the convenience level exponentially in projects that have several different stakeholders.

The system also operates within the real estate unit owners’ database and the database of real estate units registered and approved by the DLD, where no user may change the data. These two functions operating in tandem will also allow DLD to quickly resolve several ownership disputes as they will be able to examine their own financial records regarding service or maintenance charges as well as the ownership database.

The system has already been through a highly successful pilot phase, wherein 468 bank accounts were successfully opened for project service charges, 88 management companies and 1,212 real estate projects were registered and approved by RERA, as well as 200,000 real estate units, comprising residential apartments, villas, offices and commercial shops.

The system seems on course to fulfil its mission of creating an innovative and sustainable real estate environment that will promote Dubai as the world’s happiest city through smart services, professional human and financial resources and integrated real estate legislation.

We, Affiniax Partners, are proud to be Registered Auditors for the Mollak System. To know more, please contact our Audit team at mail@affiniax.com

OWN FREEHOLD PROPERTIES IN DUBAI WITHOUT A DUBAI LICENSE FOR RAKICC REGISTERED COMPANIES

Dubai Land Department (DLD) strengthen ties with Ras Al Khaimah International Corporate Centre (RAKICC) by signing Memorandums of Understanding (MOU) for the registration of freehold properties in Dubai. With this, there is no need for RAKICC Registered Companies to obtain a Dubai trade/commercial license to own a property in Dubai. No objection Certificate from RAKICC is one of the main requirements to acquire a freehold property. As of now, there are total of 23 freehold areas in Dubai and some of them are the following:
  • Dubai Marina
  • Downtown Dubai
  • Jumeirah Village Circle
  • Palm Jumeirah
  • Jumeirah Lakes Towers
  • Business Bay
And project developer such as:
  • Dubai Global
  • Dubai Holding Projects
  • EMAAR
  • Nakheel
  • Dubai Real Estate Corporation – Wasl Properties
  • Meraas Holding
This collaboration aims to open more doors of opportunities to invest in the Emirate’s Real Estate market and to disperse DLD’s expertise in Real Estate regulation and registration at the local, federal and global levels. For more inquiries or clarifications, please feel free to contact our Corporate Services team at mail@affiniax.com.

DMCC INTRODUCES DUAL LICENSING SCHEME BY PARTNERING WITH DED

As part of a continuous effort to transform Dubai into an investment friendly ecosystem, Dubai Multi Commodities Centre (DMCC), the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprises, and the Department of Economic Development (DED), the Government of Dubai entity that regulates the economic activities of all onshore companies, have signed a strategic agreement to collaborate on the licensing of companies in Dubai- allowing them to operate within the Free Zone and onshore.

The Memorandum of Understanding (MoU) introduces a dual licensing scheme to DMCC member companies, enabling them to establish a presence and operation in mainland Dubai under a DED license. It will also enable Free Zone businesses to carry out some service activities onshore, provided that DMCC member companies will obtain a no objection certificate (NOC) from the DMCC Authority.

The partnership aims to further facilitate trade and boost economic activity with the potential change to the entrepreneurship and business outlook in the Emirate and to further improve transparency, governance and compliance in the business sector. This will also welcome new business opportunity and flexibility to conduct businesses across Dubai.

We will keep you posted on any update regarding the above matter and its implementation.

100% FOREIGN OWNERSHIP IN THE UAE FOR CERTAIN ACTIVITIES

His Highness Shaikh Mohammad Bin Rashid Al Maktoum chairman of the UAE cabinet, Vice President, Prime Minister and Ruler of Dubai has approved the sectors and economic activities eligible for up to 100% foreign ownership in the UAE.

Total of 122 economic activities across 13 sectors were specified to be entitled for up to 100% foreign ownership. The decision aims to support the growth environment and to reaffirm UAE’s position on the global arena as a hub for investment.

The sectors covered are
  • Renewable Energy
  • Space
  • Agriculture and Manufacturing Industry
  • Transport and Storage
  • Hospitality and Food Services
  • Information and Communications
  • Professional, Scientific and Technical activities
  • Administrative Services
  • Support Services
  • Educational Activities
  • Healthcare
  • Art and Entertainment
  • Construction
The Local Governments will specify the ownership percentage of foreign investors in these activities.

We will keep you posted on any update regarding the above matter and it’s implementation.

We at Affiniax Partners can assist you with Economic Department Company Formation. For more information towards the company formation please feel free to contact our Corporate Service team at mail@affiniax.com.