UAQ to draw up policy to boost real estate sector - Emirates24|7

UAQ to draw up policy to boost real estate sector

The move would involve enacting laws such as ownership laws and escrow accounts (CHANDRA BALAN)

The emirate of Umm Al Quwain (UAQ) has joined the UAE's booming real estate bandwagon with its property market flourishing on rising sales figures, said a senior official.

Sheikh Ahmed bin Khalid Al Mualla, Head of the emirate's Planning and Survey Department, said the current leap in the emirate's real estate market, along with the big construction revival and diverse investment opportunities in its virgin market, was an indication of the spread of economic growth seen by the UAE.

He said the provision of a good investment environment in UAQ for the private sector – both domestic and foreign – was an important condition for the inflow of capital into the emirate.

Al Mualla added such an environment ensures stability of capital. This will also make sure investments are maintained in the UAE and national investors invest domestically rather than send their capital outside.

Over the past few years, UAQ has steadily attracted real estate investments, thanks to the continuous efforts of officials and the government, he said.

Creating an atmosphere of confidence is an important factor for attracting investors and capital, and this can only be done by enacting laws and legislations that secure financial returns in an atmosphere of security and stability for the investor, he explained.

Al Mualla added his department will formulate a general plan for the emirate to create a secure investment environment. This would involve enacting laws, such as real estate ownership laws and escrow accounts. He asked developers to follow the laws by registering themselves with the department to be officially approved.

Unregistered real estate agencies are causing imbalance in real estate sector, Al Mualla said. Also, real estate finance can sometimes be a burden on investors lacking experience, he added.

Al Mualla said investing in the real estate sector is not as quick and easy as some might think. Rather, it takes time to get anticipated returns and profits – a thing that dissuades many investors from investing in the sector, he added.

However, the picture will become clearer when investors understand the rules and regulations in the emirate, said Al Mualla. This will increase confidence in the sector, he added.