Law
No. (14) of 2007
Establishing
the
Dubai
Real Estate Corporation[1]
_______________
We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal
of:
The Development
Law of 1975 and its amendments;
Regulation
No. (1) of 1975 Concerning the Development Board;
Law No. (7)
of 2006 Concerning Real Property Registration in the Emirate of Dubai; and
Law No. (18)
of 2006 Concerning Management and Realisation of the Public Funds of the
Government of Dubai,
Do
hereby issue this Law.
This
Law will be cited as “Law No. (14) of 2007 Establishing the Dubai Real Estate
Corporation”.
The
following words and expressions will have the meaning indicated opposite each
of them unless the context implies otherwise:
|
Ruler: |
His Highness the Ruler of Dubai. |
|
Emirate: |
The Emirate of Dubai. |
|
Government: |
The Government of Dubai. |
|
Executive Council: |
The Executive Council of the Emirate of Dubai. |
|
DREC: |
The Dubai Real Estate Corporation. |
|
Board of Directors: |
The board of directors of the DREC. |
|
CEO: |
The chief executive director of the DREC. |
|
Public Treasury: |
The public revenue account of the Government of
Dubai. |
Pursuant to this Law, a public corporation named
“Dubai Real Estate Corporation” is established. The DREC will conduct its business
on a commercial basis, and have legal personality, financial and administrative
autonomy, and the legal capacity required to undertake all acts and dispositions
that ensure the achievement of its objectives. The DREC may enter into
contracts with third parties, sue and be sued in its own name, and appoint any
other person to represent it for these purposes. The DREC will be affiliated to
the Executive Council.
The head office of the DREC will be located in
Dubai. The DREC may establish branches inside and outside of the Emirate.
The DREC aims to own and manage the Real
Property registered in the name of the Government or any of its departments,
including to:
1. own, develop, invest, use, and exploit the
commercial and industrial Land and Real Property existing in the Emirate;
2. provide construction, implementation,
marketing, and management services for buildings, and commercial and Real
Property; and
3. construct, purchase, lease out, and manage the
Real Property registered in the name of the DREC.
For the purpose of achieving its objectives,
the DREC may:
1.
participate
in providing the infrastructure, buildings, and management services and any
other services required for the achievement of its objectives;
2.
enter
into partnerships and agreements with corporations, persons, companies, and
entities for any projects, related to the areas of specialisation of the DREC,
within or outside of the
Emirate; and
3.
participate in urban planning and organisation with the concerned
entities in the Emirate.
The DREC will be managed by a Board of
Directors comprised of a chairman, vice chairman, and a number of competent and
specialised members appointed pursuant to a decree of the Ruler. The Board of
Directors will be appointed for a renewable term of three (3) years.
The Board of Directors will manage and generally
supervise the administrative, technical, and financial affairs of the DREC and
take, as it may deem appropriate, all decisions and actions required for the
achievement of the objectives of the DREC, including to:
1.
set
the general policy and the project plans of the DREC;
2.
approve
the draft budget of the DREC and submit it to the Executive Council for approval;
3.
authorise
the CEO to exercise certain powers of the Board of Directors;
4.
prepare
the organisational structure and the bylaws regulating the administrative,
financial, and technical affairs of the DREC, and submit these to the Executive
Council for approval; and
5.
appoint
auditors
and determine their remuneration at the beginning of each financial year.
The Board of Directors will be convened at the
invitation of the chairman at least once every three (3) months. A meeting will
be valid if attended by a quorum of two thirds of members including the
chairman of the Board of Directors. Resolutions of the Board of Directors will
be passed by majority vote of attending members, and in the event of a tie the
chair of the meeting will have the casting vote. These resolutions will be recorded
in minutes of meetings signed by the chair of the meeting and attending members.
1. The Board of Directors may form temporary or
permanent sub-committees to assist in the performance of its duties. The Board
of Directors will determine the functions and powers of, and may delegate some
of its powers to, such sub-committees.
2. In the performance of its functions, the Board
of Directors may, as it deemed appropriate seek the assistance of experts and specialists
by inviting them to attend its meetings provided that they may not vote.
Except in cases of fraud and gross fault, neither
the Board of Directors, nor its chairman, nor its members may, in the course of
managing the DREC or its operations, be liable towards third parties for any
act or omission committed in respect of such management. The DREC will be
solely liable towards third parties for such act or omission.
The executive body of the DREC will be comprised
of a CEO, appointed pursuant to a resolution of the Chairman of the Executive
Council, and a number of administrative and technical employees.
The CEO will undertake the general supervision of the work
and activities of the DREC, and will represent it before third parties. This
includes but is not limited to:
1. setting the strategic plan of the DREC and submitting
it to the Board of Directors for approval;
2. implementing the general policy set by, and
the resolutions of, the Board of Directors;
3. proposing the initiatives, programmes, and
projects pertaining to the work and activities of the DREC;
4. preparing the annual budget of the DREC and submitting
it to the Board of Directors;
5.
investing
the funds of the DREC in projects that are in line with
the general policy of the DREC;
6. supervising the work of the executive body of
the DREC and appointing competent and specialised employees;
7. proposing the organisational structure and the
financial, administrative, and technical bylaws regulating the work of the DREC;
and
8.
exercising
any other powers delegated by the Board of Directors to the CEO or stipulated
in any resolution issued in
pursuance hereof.
a. Subject to the provisions of Article (15) of this Law, the ownership of the
following Real Property will be transferred to the DREC:
1.
vacant Land registered in the name
of any Government department and used for commercial purposes;
2.
commercial Real Property and
buildings, whether leased or not, registered in the name of Government
departments;
3.
Government Land and Real Property,
whether completed or under construction, registered in the name of the
Development Board or the Department of Government Real Property;
4.
Hyatt Regency Hotel, Grand Hyatt
Hotel, Hyatt Galleria, Hyatt Hotel Apartments, Grand Hyatt Hotel Apartments,
and Cineplex Cinemas, including the Land on which this Real Property is
constructed; and
5. any
other Real Property owned
by the departments, entities, and corporations affiliated to the Government and
managed on a commercial basis.
b. For the purposes of this Article, all
contracts, rights, and obligations arising from the projects implemented on the
said Land and Real Property will be transferred to the DREC.
The provisions of this Law will not apply to
the Land and Real Property existing within free zones in the Emirate.
1. Pursuant to this Law, the Department of
Government Real Property and the Development Board will be dissolved and all
their assets, rights, and obligations will be transferred to the DREC.
2.
All employees of the
Development Board and the Department of Government Real Property will
be transferred to the DREC. The DREC will have the right to transfer to its
employment, as it may deem appropriate, the employees of any other department who
are in charge of Real Property affairs, without prejudice to their existing
rights.
In regulating its accounts and records, the DREC
will follow the rules and principles of commercial accounting. The financial
year of the DREC will commence on 1 January and will end on 31 December of each
year, except that the first financial year will commence as of the date this
Law comes into force and will end on 31 December of the following year.
The financial resources of the DREC will
consist of:
1. profits and proceeds generated from the
activities of the DREC;
2. fees and charges for services provided by the
DREC to the public; and
3. any other resources approved by the Executive
Council.
The DREC will present its financial statements
to the Department of Finance prior to approval by the Board of Directors in
order to determine the Government’s share of the surplus of its financial activities,
for such share to be paid to the Public Treasury. Any revenues generated from the
sale or privatisation of any company or business of the DREC will be paid to
the Public Treasury.
The Land Department, Dubai Municipality, and
all concerned entities must take inventory of all property and Real Property registered
in the name of the entities to which this Law applies, and must register the
same in the name of the DREC.
The Chairman of the Executive Council will
issue the resolutions and regulations required for the implementation of this
Law.
The Development Law of 1975 and Regulation No.
(1) of 1975 Concerning the Development Board are hereby repealed. Any provision
in any other legislation will also be repealed to the extent that it
contradicts the provisions of this Law.
This Law will be published in the Official
Gazette and will come into force on the day on which it is published.
Mohammed bin
Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 17 June 2007
Corresponding to 2 Jumada al-Thaniyah 1428 A.H.
© 2014 The Supreme
Legislation Committee in the Emirate of Dubai
[1]Every effort has been made to
produce an accurate and complete English version of this legislation. However,
for the purpose of its interpretation and application, reference must be made
to the original Arabic text. In case of conflict the Arabic text will prevail.