Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, recently introduced new Dubai timeshare law to regulate the industry in the region and for the prevention of scams and frauds.
With the issuance of this new law (Law No. (14) of 2020), the government aims to improve the legal framework. This, in turn, will aid the growth of tourism and numerous other economic sectors in the emirate.
For the uninitiated, timeshare refers to a shared ownership model in which the ownership of a property is divided into multiple owners. Each owner can exercise exclusive rights over the said property for a particular period of time.
The timeshare model can be used for different types of properties, including resorts, camping grounds and short-term rental apartments, etc.
As per Dubai Timeshare Law, Dubai Tourism will oversee the activities pertaining to the timeshare industry in the emirate. The department will also be held responsible for the development of terms and conditions along with setting the technical standard, which timeshare facilities will be required to meet to be able to obtain approval and permits.
In this new law, rights and obligations of timeshare facilities are defined. Furthermore, terms and conditions related to the cancellation of the contract or its transfer are also explained.
This law is expected to accelerate the growth of tourism and real estate in the emirate. Furthermore, it will enhance the rate of investment in the market of vacation property ownership as well.
With the implementation of this law, the rights of all the parties, not only associated with a property but the industry will be protected as the timeshare sector will be regulated as per the international practices.
Apart from the responsibilities discussed above, Dubai Tourism will have numerous other issues to oversee related to the timeshare industry. These include:
As stated above, timeshare permits are to be obtained by the Dubai Tourism Department. These permits are renewable and valid for one year. The department can grant permits to an entity for up to 4 years.
It is important for every entity or individual undertaking activities in timeshare business to comply with the legislation within 6 months after it has been made effective. This period can be extended by Dubai Tourism’s Director General if required. Those timeshare contracts that have concluded before the implementation of this new law are still deemed valid. If they are renewed, new provisions introduced will apply to them as well.