Dubai: Law Number 14 of 2020 regulating the timeshare industry in Dubai
To enhance the legal framework of Dubai’s economic sectors, including tourism, the government has introduced Law Number 14 of 2020 regulating the timeshare industry.
What is the timeshare industry?
A timeshare is a shared ownership model wherein property is held by multiple owners having exclusive rights over the property for a specified period. This model applies to various types of properties such as resorts, apartments, camping grounds etc.
The legislation lays down a broad context for timeshare business activity and aims to enhance the growth of real estate and tourism in Dubai, it further boosts the growth of investment in vacation property ownership and provides alternatives to visitors and tourists. The legislation seeks to regulate rights as per international standards tailor-made to fit the legal framework of the emirate.
Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) is tasked with overseeing the activities conducted in the industry. Further, it is also authorized to develop technical standards for acquiring licenses and approvals, and all such terms and conditions that shall apply. All decisions about matters related to activities conducted in the timeshare sector regarding brokers and developers, registration of contracts and rights over usufruct in the Land Department shall be taken in coordination with the Dubai International Financial Center and the Dubai Land Department.
Dubai Tourism is authorized to;
Classify and list residential units under the Law
Granting permits, license and approvals
Ensure compliance with relevant regulations as well as bylaws
Establish a database for facilities operating as a timeshare property
Creating contractual terms and outlining requirements for the transfer of usufruct and advertisements
Permits issued for timeshare facilities shall be valid for a renewable period of one year with the ability to obtain a license for up to four years on request by the permit owner, subject to authorization by Dubai Tourism. Individuals and entities undertaking business in this sector are required to comply with the provisions of the legislation within six months from its effective date. This period may be subject to extension by the Director-General of Dubai Tourism.
The validity of contracts entered into before activation of the Law shall prevail, subject to renewal to adhere to the provisions of the Law.