His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued Decree No. (23) of 2022 regulating the granting of Musataha rights to commercial land in Dubai.
The decree regulates the use of commercial land in Dubai, granting Musatakha the right to develop real estate projects. The new legislation is part of the emirate's efforts to strengthen Dubai's status as a preferred destination for global real estate investment.
According to the Decree, the Musatakha agreement creates the right to real estate, which gives its owner the right to erect a building or invest, mortgage, lease, sell or buy a land plot belonging to a third party for 35 years.
The agreement can be extended for a maximum of 50 years. An extension request must be submitted two years before the expiration of the agreement.
The agreement holder must comply with some rules and regulations. They include refusing to change the use of commercial land without obtaining the prior consent of the owner. In addition, the agreement holder must register the agreement in the registry of the Dubai Land Department or in the Registry of the Dubai International Financial Center (DIFC).