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UAE plans to set up a federal real estate regulatory authority, says minister

Samir Salama Gulf News
"There are local real estate regulatory authorities and the Government considers assuming a role at the federal level and coordinate between these authorities," said Obaid Humaid Al Tayer, Minister of State for Financial Affairs.

"There are local real estate regulatory authorities and the Government considers assuming a role at the federal level and coordinate between these authorities," said Obaid Humaid Al Tayer, Minister of State for Financial Affairs.


The Government considers setting up a federal real estate regulatory authority and coordinating efforts of the local regulatory authorities to regulate real estate developers, the minister of state for financial affairs told the Federal National Council (FNC).



"There are local real estate regulatory authorities and the Government considers assuming a role at the federal level and coordinate between these authorities," said Obaid Humaid Al Tayer, Minister of State for Financial Affairs.

The House voiced concern over foreign property developers who fully finance their projects from the local banks without having a capital.

Amer Abdul Jalil Al Fahim, a member from Abu Dhabi, said some foreign real estate developers obtain full funding of their projects from the local banks, which carries risk of losing the finances especially if the developers fail to complete their projects or flee the country leaving behind big losses.

He called for introducing regulations to limit offering finance, especially to foreign developers who do not have a stake in their projects’ capital.

Al Tayer said the central bank and the UAE banking system is committed to a loan ratio of up to 20 per cent. "The loan ratio is exactly 18 per cent. The real estate sector is very important and the government endeavours to keep it safe and sound, even under the current difficult circumstances."


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