Ease of doing Business: UAE is the leader in its region

  • June 08, 2018
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It’s true. The ease of doing business index was created by the Bulgarian Economist, Simeon Djankov at the World Bank Group. The academic research for the report was done jointly with professors Oliver Hart and Andrei Shleifer. Higher rankings indicate usually simpler regulations for businesses and stronger protections of property rights. Empirical research funded by the World Bank to justify their work show that the economic growth-impact of improving these regulations is strong. The Doing Business Report is elaborated by the World Bank Group and released every year. It is aimed to measure the costs to firms of business regulations in 190 countries.

Standard property transfer table

Although UAE ranks 21 globally in the current year (2018) for ease of doing business, it stands Number One among other countries in the Middle East region in ease of registering property and in additional categories as well. The report does not talk about residential property transactions between individuals. However this article aspires to educate real estate investors across the world about UAE as a country and Dubai as a city that facilitates doing businesses in the easiest and efficient way, matching other top ranked destinations in the world. With the system working so well, Dubai’s property market is a force to reckon with, for higher returns. Here are some excerpts from the report that focuses on the property registration process in UAE.

Assumptions for the country ranking

(Source: Doing Business Report)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

  • Are limited liability companies (or the legal equivalent).
  • Are located in the periurban area of the economy’s largest business city.

For 11 economies the data are also collected for the second largest business city.

  • Are 100% domestically and privately owned.
  • Have 50 employees each, all of whom are nationals.
  • Perform general commercial activities.

The property (fully owned by the seller):

  • Has a value of 50 times income per capita, which equals the sale price.
  • Is fully owned by the seller.
  • Has no mortgages attached and has been under the same ownership for the past 10 years.
  • Is registered in the land registry or cadastre*, or both, and is free of title disputes.
  • Is located in a peri-urban commercial zone, and no rezoning is required.
  • Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.
  • Will not be subject to renovations or additional construction following the purchase.
  • Has no trees, natural water sources, natural reserves or historical monuments of any kind.
  • Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.
  • Has no occupants, and no other party holds a legal interest in it.

*A cadastre (also spelled cadaster) is a comprehensive land recording of the real estate or real property's metes-and-bounds of a country.

Registering Property in United Arab Emirates – Procedure, Time and Cost

In October 2012, the Dubai Land Department started licensing companies to act in its behalf and use its system for property registration, among other services. As of August 2013, all transactions must be made through the 13 Registration trustees throughout Dubai.

Moreover, in April, 2014, the United Arab Emirates enacted administrative decree 52. It launched a standard contract for property transfers making it possible for parties to process a transfer without the need to consult a legal expert.

  1. The parties have to present themselves at one of the registration trustee's office with the standard contract along with the following documents.
  1. Company Trade License (Original or Copy)
  2. Shareholder Certificate (Arabic & English)
  3. Memorandum of the company (Arabic & English)
  4. Board Resolution (Arabic & English)
  5. Power of Attorney from Company (Arabic & English)
  6. Passport copies of shareholders

Parties then sign the contract and submit the application to one of the office's employees.

Time to complete: 1 day

Associated Costs: Registration trustee fee of AED 2,000 (If the registered/transferred property value less than AED 500,000) or AED 4,000 (If the registered/transferred property value equal or more than AED 500,000)

  1. Register title at the Dubai Land Department

Once the documentation is submitted, the trustee proceeds to register the new owner on the Dubai Land Department. The offices have access to the Land Department system and registration is completed on the spot within a couple of hours.

Time to complete: Less than one day (online procedure)

Associated costs: AED 10 for registering each square meter of land, with a minimum of AED 10,000

FAQs – Registering Property in United Arab Emirates

  1. What is the institution in charge of immovable property registration? Dubai Land Department
  2. In what format are the majority of title or deed records kept in the largest business city —in a paper format or in a computerized format (scanned or fully digital)? Computer/Fully digital  
  3. Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes
  4. Institution in charge of the plans showing legal boundaries in the largest business city: Dubai Land Department
  5. In what format are the majority of maps of land plots kept in the largest business city? Computer/Fully
  6. Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes
  7. Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Different databases but linked
  8. Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes
  9. Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Only intermediaries and interested parties
  10. Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, online
  11. Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available– and if so, how? Yes, online
  12. Link for online access: http://www.dubailand.gov.ae/English/services/Realestateservices/Pages/Real-Estate-Services.aspx
  13. Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame and if so, how does it communicate the service standard? Yes, online
  14. Link for online access: http://www.dubailand.gov.ae/English/services/Realestateservices/Pages/Real-Estate-Services.aspx
  15. Is there a specific and separate mechanism for ling complaints about a problem that occurred at the agency in charge of immovable property registration? No
  16. Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? Yes
  17. Number of property transfers in the largest business city in 2016: 41776.0
  18. Who is able to consult maps of land plots in the largest business city? Only intermediaries and interested parties
  19. Is the applicable fee schedule for accessing maps of land plots made publicly available and if so, how? Yes, online. Link for online access: http://www.dubailand.gov.ae/English/Real%20Estate%20Services/Survey%20Services.pdf
  20. Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, online Link for online access: http://www.dubailand.gov.ae/English/Real%20Estate%20Services/Survey%20Services.pdf
  21. Is there a specific and separate mechanism for ling complaints about a problem that occurred at the cadastral or mapping agency? No
  22. Is there a specific and separate mechanism for ling complaints about a problem that occurred at the cadastral or mapping agency? No  
  23. Are all privately held land plots in the economy formally registered at the immovable property registry? No
  24. Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes
  25. Are all privately held land plots in the economy mapped? No
  26. Are all privately held land plots in the largest business city mapped? Yes
  27. Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes
  28. Is the system of immovable property registration subject to a state or private guarantee? Yes
  29. Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No
  30. Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes
  31. If yes, who is responsible for checking the legality of the documents? Registrar.
  32. Does the legal system require verification of the identity of the parties to a property transaction? Yes
  33. If yes, who is responsible for verifying the identity of the parties? Registrar.
  34. Is there a national database to verify the accuracy of identity documents? Yes
  35. For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Dubai court of first instance
  36. How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years
  37. Are there any statistics on the number of land disputes in the first instance? No
  38. Do unmarried men and unmarried women have equal ownership rights to property? Yes
  39. Do married men and married women have equal ownership rights to property? Yes