DLD mulling revival of 158 Dubai property projects

Published Wednesday, July 31, 2013

By Parag Deulgaonkar

Dubai Land Department (DLD) is studying 158 projects that could be revived through its real estate initiatives, Emirates 24|7 can reveal.

“We have registered 45 projects under Tanmia and another 45 under the Tayseer scheme. And we are currently studying another 158 projects,” said Majida Ali Rashid, Chairwoman of the Real Estate Investment and Promotion Centre, DLD.

Tayseer is a guaranteed funding initiative and was launched in June 2010. It initially covered 40 projects across Business Bay, Dubai Marina and Jumeirah Lake Towers. To qualify in the scheme, projects need to have adequate infrastructure planned or in place; the escrow trust account be properly managed and financial reporting full and timely; technical report must show that a minimum 60 per cent of construction is completed and that a minimum 60 per cent of the project is sold.

Tanmia was launched in September 2011 and was aimed at getting semi-government/private investors on board to get projects completed. Under the scheme, property investors were also given the right to register their stalled projects with the DLD.

Although the centre, which is the investment arm of DLD, said it has signed agreements with Wasl Properties, Emaar and Mohammed bin Rashid Housing under the Tanmia initiative, none of the major companies have yet taken over any project to date.

On the contrary, some private developers have taken over projects under the Tanmia with Pacific Ventures, an Indian developer, leading with take over of three to four projects.

Al Manal Development’s The Lakeside Residence in Jumeirah Lake Towers is the only project to be completed under Tayseer scheme.

Asked if investors were not taking over projects as the centre has failed to resolve legal cases on stalled projects, Majida said: “The answer to the question is actually replied by mentioning the number of projects registered and witnessing investors demand. As for the disputes, the centre deals with each case in particular, and each one is carefully studied even the legal issues.”

On Tuesday,Dubai government announced setting up a special legal committee for the liquidation of cancelled property projects in the emirate of Dubai and the settlement of rights disputes related to such projects.

As per Dubai Government’s bond prospectus, issued in 2012, 217 projects had been cancelled as of May 31, 2011.

As reported last week by Emirates 24|7, the Real Estate Investor Protection law (Tanweer) is ready and awaiting clearance from higher authorities for its release. The initiative aims to minimise legal disputes and protect investors' rights.