On 18 March 2025, the Law on Organizing Real Estate Contributions in Ajman was enacted in Ajman. This is the first law of its kind in the UAE regulating property contributions. It aims to ensure transparency, investor protection and sustainable real estate market development.
Some key provisions of the law:
Register of property contributions:
The registry will record details of contributions (investor shares, properties) in paper or electronic format.
Types of contributions:
o Public - shares for a wide range of persons.
o Private - agreements between the owner and a limited group of investors.
Conditions for registration of real estate deposits:
o Consent of the property owner.
o Appointment of a licensed property manager.
o Opening of an escrow account.
Escrow Accounts:
Investor funds will be kept under the control of licensed managers. This will ensure proper utilization of funds.
Rights and obligations of investors:
The investor has the right to access information about the project and the ability to transfer shares.
The investor is required to disclose the source of his/her income and pay contributions in full.
Duties of the manager:
o Supervise the project at all stages of its implementation.
o Management of the escrow account.
o Legal support to ensure legality.
Important condition: The manager is obliged to maintain a minimum share in the project until its full completion. This guarantees the interest in the successful completion.
The law also defines the timeframe for project implementation and establishes the liquidation procedure, as well as provides for the terms of profit distribution among investors. In addition, the law includes provisions on penalties and a mechanism for resolving investor disputes.
The new law should increase investor confidence by emphasizing the transparency of the entire process. There are new guarantees: compulsory registration, escrow accounts, control of conditions - all of which help to minimize the risk of fraud and reduce the likelihood of abuse. Dispute resolution mechanisms have been put in place, allowing for a rapid response to emerging problems.
The law creates a safe environment for investment, where depositors' interests are protected at all stages. Clear 'needle rules' have been developed with clear requirements for all participants.
The law opens new opportunities for the real estate market in Ajman, where investment security becomes a competitive advantage for the emirate.
Register of property contributions:
The registry will record details of contributions (investor shares, properties) in paper or electronic format.
Types of contributions:
o Public - shares for a wide range of persons.
o Private - agreements between the owner and a limited group of investors.
Conditions for registration of real estate deposits:
o Consent of the property owner.
o Appointment of a licensed property manager.
o Opening of an escrow account.
Escrow Accounts:
Investor funds will be kept under the control of licensed managers. This will ensure proper utilization of funds.
Rights and obligations of investors:
The investor has the right to access information about the project and the ability to transfer shares.
The investor is required to disclose the source of his/her income and pay contributions in full.
Duties of the manager:
o Supervise the project at all stages of its implementation.
o Management of the escrow account.
o Legal support to ensure legality.
Important condition: The manager is obliged to maintain a minimum share in the project until its full completion. This guarantees the interest in the successful completion.
The law also defines the timeframe for project implementation and establishes the liquidation procedure, as well as provides for the terms of profit distribution among investors. In addition, the law includes provisions on penalties and a mechanism for resolving investor disputes.
The new law should increase investor confidence by emphasizing the transparency of the entire process. There are new guarantees: compulsory registration, escrow accounts, control of conditions - all of which help to minimize the risk of fraud and reduce the likelihood of abuse. Dispute resolution mechanisms have been put in place, allowing for a rapid response to emerging problems.
The law creates a safe environment for investment, where depositors' interests are protected at all stages. Clear 'needle rules' have been developed with clear requirements for all participants.
The law opens new opportunities for the real estate market in Ajman, where investment security becomes a competitive advantage for the emirate.