On 8 July 2019, UAE SCA issued controls of real estate investments.
- Administrative decision (62 / T), is amended decision no. (6 / R) for year 2019.
Real Estate Asset Requirements
- Amended fund regulations require real estate investments meet with conditions.
- Fund's real estate assets comply with laws in country in which property located.
- Purchase accepted under local rights, either official contracts or via acquisitions.
- Property should not be burdened with restrictions or obligations, held against it.
- Remaining period of rights to free use of property is not to be less than 7 years.
- Real estate assets producing returns of General real estate investment fund, of
less than 1%, should comprise at least 75% of the total assets of the fund.
- Sources of income comprising real estate, interest, dividends and capital gains,
to the General real estate investment fund, make up 90% of its total revenues.
- Percentage of investment in free rights of use to not exceed 25% of net assets.
- This decision shall be communicated, come into effect from date of its issuance.