As the world watched the fireworks exploding around the Burj Khalifa and other prominent developments were handed over to owners and investors in Dubai, the focus was shifting to considering how these complicated mixed-use developments would be operated and managed.
Law No. 27 of 2007 On Ownership of Jointly Owned Properties in the Emirate of Dubai (the Strata Law) was enacted by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, to establish the subdivision requirements for buildings with multiple ownership and provide a mechanism to govern their management.
Stephen Kelly, a leading strata title specialist with the international law firm Clyde and Co, discusses the implementation of the Strata Law and how a fully operational strata regime will benefit the property market.
What exactly is strata title?
Strata title is a system that enables the subdivision of a building that has multiple ownership into clearly defined "units" and "common areas". The units are separately owned by the owners and the common areas are owned collectively by all owners within the building [or part of the building that has multiple ownership].
Under the traditional method of subdivision, it is not possible to subdivide land into different "layers" to allow for parcels to sit above or below other parcels, such as in an apartment building. The traditional form of subdivision also does not allow for a portion of the land to remain collectively owned, such as shared lobbies, hallways, swimming pools and gyms. A strata title system overcomes these inadequacies.
Why is the implementation of the Strata Law important to the property market?
The implementation of a fully operational strata regime in Dubai is extremely important to the property market for a number of reasons. The most important of these is that, once fully operational, the Strata Law will provide a legal framework that enables a building with multiple ownership to be subdivided into units and common areas in a way that is consistent with other leading world markets.
This includes providing a consistent method for the measurement of units, ensuring that owners and investors can compare "apples with apples" when deciding between units within different developments.
In addition, the Strata Law provides a further unique benefit in that it introduces a structure to deal with the management and maintenance of the common areas to ensure that the owners' interests are protected at all times.
Where are we with the implementation of the Strata Law?
While Dubai's Strata Law was enacted in November 2007, and was intended to take effect from April 1, 2008, the strata title regime has yet to become fully operational as the implementing regulations are still to be finalised by the Dubai Land Department and the Real Estate Regulatory Agency (RERA).
Owners and the development industry are awaiting the issuing of the regulations to provide direction as to how the plans and constitutional documents required to be registered with the Land Department are to be prepared under the Strata Law. This uncertainty appears to have resulted in something of a standstill period, with many developers simply delaying the strata implementation process or holding back on certain aspects of this process in the hope that the regulations will be issued shortly to clarify the requirements.
Until the strata regulations have been issued, how are owners protected?
In the absence of a fully operational Strata Law, it is generally considered that an owner's right to its unit is a contractual right arising from the sale and purchase agreement entered into with the developer. Provided the owner has satisfied its obligations under the sale and purchase agreement, the owner is considered to be the owner of the unit and the Land Department will issue a title that records the owner's interest in the unit. To date, and in the absence of any alternative, the Middle Eastern market has accepted and afforded a level of comfort to such ownership structure that has enabled the sale of apartments and offices to be transacted and for such units to be used as security for borrowing.
Is the way buildings are managed likely to change under the Strata Law?
Historically, owners have not been actively involved in the management of their buildings, as developers have normally sought to retain management for extended terms under the sale and purchase agreement. Many owners are now actively questioning these management arrangements and it appears likely that the implementation regulations will place some form of restriction on developers attempting to retain the management rights, with management contracts entered into by the developers likely to be limited in duration or otherwise restricted.
Once the regulations have been issued, it is expected that the owners, through their association, will take on a greater role in managing their buildings. However, until the regulations that govern and restrict management arrangements have been issued, developers are likely to continue to manage buildings on behalf of the owners.
Are service charges likely to be further regulated under the Strata Law?
There has been much attention of late directed at the service charge regime in Dubai, with many owners and investors actively questioning the management arrangements and demanding greater transparency from developers with respect to service charges.
RERA has provided owners with invaluable support by requiring developers to have service charges approved by the agency. This has resulted in a substantial reduction in the service charges being levied on owners.
It is, however, expected that RERA's involvement in regulating service charges is an interim measure that should not be necessary once the Strata Law becomes fully operational.
As the owners' association will be the body largely responsible for operating and maintaining the common areas and for setting the budget for the building [once the building becomes fully operational under the Strata Law], it is expected that the service charges for each year will be determined by the majority of the owners and therefore largely be within the control of the owners.
How is the Strata Law relevant to mixed-use buildings such as the Burj Khalifa?
Burj Khalifa is like many other developments in Dubai in so far as it comprises more than one dominant use. In addition to the Armani Hotel, Burj Khalifa contains commercial offices, retail suites, residential apartments and a variety of other facilities.
While these different components within the building may share certain areas, facilities, car parking and essential services, and will have a collective desire to ensure that the building is maintained to the highest standard, the owners within the individual components may desire the ability to determine, to an extent, how their components will be operated and managed. For instance, it is unlikely that the owner of the hotel will want owners of other units in the building having a say in how the hotel operates unless its operation affects the use and enjoyment of their components.
An important consideration with mixed-use buildings is how the cost of maintaining the shared areas and facilities is to be shared among the various component and unit owners in the building, and which owners are to be responsible for ensuring that such areas and facilities are operated and maintained to an appropriately high standard. This involves undertaking a detailed assessment of the building to identify all the shared areas and facilities, determine which components use such areas and facilities, and determine the fair apportionment of costs between the components that utilise them.
Once the Strata Law is fully operational, it is expected that it will provide the framework for the structuring and subdividing of mixed-use buildings to ensure that the interests of all component and unit owners are protected, and that the buildings are managed well.
And for the future?
Although Dubai is facing challenges caused by the downturn, the implementation of a fully operational Strata Law will assist in accelerating its recovery by providing foreign and institutional investors clear title for their properties, similar to the titles granted for properties in buildings with multiple ownership in other leading world markets. The Strata Law and its implementation will provide developers, owners and investors with the final piece of the puzzle.
@Email:rwright@thenational.ae
Killing of Qassem Suleimani
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
BACK%20TO%20ALEXANDRIA
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ETamer%20Ruggli%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3ENadine%20Labaki%2C%20Fanny%20Ardant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
Under 19 World Cup
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
More from Neighbourhood Watch:
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
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How much sugar is in chocolate Easter eggs?
- The 169g Crunchie egg has 15.9g of sugar per 25g serving, working out at around 107g of sugar per egg
- The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
- The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
- The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
- The Cadbury Creme Egg contains 26g of sugar per 40g egg
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
UAE finals day
Friday, April 13
Rugby Park, Dubai Sports City
3pm, UAE Conference: Dubai Tigers v Sharjah Wanderers
6.30pm, UAE Premiership: Dubai Exiles v Abu Dhabi Harlequins
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
DMZ facts
- The DMZ was created as a buffer after the 1950-53 Korean War.
- It runs 248 kilometers across the Korean Peninsula and is 4km wide.
- The zone is jointly overseen by the US-led United Nations Command and North Korea.
- It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
- Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
- Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
- Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012.
- Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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Calls
Directed by: Fede Alvarez
Starring: Pedro Pascal, Karen Gillian, Aaron Taylor-Johnson
4/5
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
The%20specs
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
The bio
Academics: Phd in strategic management in University of Wales
Number one caps: His best-seller caps are in shades of grey, blue, black and yellow
Reading: Is immersed in books on colours to understand more about the usage of different shades
Sport: Started playing polo two years ago. Helps him relax, plus he enjoys the speed and focus
Cars: Loves exotic cars and currently drives a Bentley Bentayga
Holiday: Favourite travel destinations are London and St Tropez
3%20Body%20Problem
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Read more from Johann Chacko
List of UAE medal winners
Gold
Faisal Al Ketbi (Open weight and 94kg)
Talib Al Kirbi (69kg)
Omar Al Fadhli (56kg)
Silver
Zayed Al Kaabi (94kg)
Khalfan Belhol (85kg)
Zayed Al Mansoori (62kg)
Mouza Al Shamsi (49kg women)
Bronze
Yahia Mansour Al Hammadi (Open and 94kg)
Saood Al Hammadi (77kg)
Said Al Mazroui (62kg)
Obaid Al Nuaimi (56kg)
Bashayer Al Matrooshi (62kg women)
Reem Abdulkareem (45kg women)
Killing of Qassem Suleimani
Killing of Qassem Suleimani
