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Dubai Issues Decree Introducing Incentives for Property Investment Funds

The decree aims to enhance Dubai’s status as a global real estate investment destination. WAM
The decree aims to enhance Dubai’s status as a global real estate investment destination. WAM
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Dubai Issues Decree Introducing Incentives for Property Investment Funds

The decree aims to enhance Dubai’s status as a global real estate investment destination. WAM
The decree aims to enhance Dubai’s status as a global real estate investment destination. WAM

UAE Vice President, Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum has issued a decree introducing incentives for property investment funds in Dubai, Emirates News Agency (WAM) has reported.

The decree aims to enhance Dubai’s status as a global real estate investment destination and attract global property investment funds to the emirate, WAM said.

The decree covers all real estate investment funds licensed and regulated by government authorities as well as private development zones and free zones, including the Dubai International Financial Centre (DIFC). It also covers all real estate in Dubai, including properties located in private development zones and free zones, excluding DIFC, the news agency added.

As per Decree No. (22) of 2022, a ‘Register of Property Investment Funds’ will be established at the Dubai Land Department.

The decree outlines the terms, conditions, and procedures for listing in the Register. Funds seeking to be listed in the Register should be licensed by competent government authorities including the Securities and Commodities Authority and the Dubai Financial Services Authority, DIFC’s independent regulator of financial services.

The value of real estate assets owned by the fund at the time of application for listing in the Register should be AED180 million or above. Funds should not be suspended from trading in Dubai’s financial markets at the time of application.

According to WAM, the decree also directs the establishment of a ‘Committee for Property Investment Funds,’ whose purpose is to identify areas and properties that funds are allowed to invest in either through full ownership or lease for a period not exceeding 99 years.

The value of properties that funds invest in should be AED50 million or above. The properties should be listed as commercial properties and comply with another decree from 2010. Funds are allowed to relinquish ownership of properties only after approval from the Committee.

Property investment funds listed in the Register are entitled to receive the incentives specified by the Decree.

Decree No. (22) of 2022 authorizes the Chairman of the Executive Council of Dubai to amend the incentives specified by the decree or add new ones. The Chairman of the Dubai International Financial Center is also authorized to amend incentives for property investment funds operating within DIFC’s jurisdiction.

The decree also directs the Dubai Land Department to appoint a valuation specialist accredited by the Dubai Real Estate Regulatory Agency (RERA) to determine the value of properties owned by property investment funds.

Apart from the resolutions issued by the Chairman of the Executive Council of Dubai in accordance with Decree No. (22), the Director General of the Dubai Land Department is authorized to issue other resolutions necessary to implement the provisions of the new Decree.

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Israel-Iran Conflict Disrupts Air Travel in the Region

Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)
Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)
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Israel-Iran Conflict Disrupts Air Travel in the Region

Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)
Flight information display screen shows updates about cancelled flights, due to schedule disruptions stemming from the Iran-Israel conflict, at the Beirut-Rafik Hariri International Airport, Lebanon June 16, 2025. (Reuters)

The escalating military conflict between Israel and Iran is creating mounting challenges for Middle Eastern airlines, including airspace closures and rerouted flight paths, all of which are driving up operational costs.

While Gulf carriers are relying on alternative routes - albeit more expensive ones - private airlines in neighboring countries face the risk of exiting the market altogether if the crisis persists.

Countries geographically close to the conflict, such as Iraq, Lebanon, and Jordan, are increasingly concerned about the conflict’s deepening impact on the civil aviation sector, which represents one of the most sensitive branches of their economies. The threat is no longer confined to security concerns alone, but is now hitting the economic core of these nations.

Dr. Hussein Al-Zahrani, an aviation investor, told Asharq Al-Awsat that countries geographically tied to the Iran-Israel conflict are already facing direct complications in the aviation sector. These include airport closures and rerouted flights, such as the diversion of Jordanian planes to Egypt’s Cairo and Sharm El Sheikh, or grounding aircraft entirely.

Al-Zahrani noted that national carriers in these countries, particularly state-owned airlines, are more likely to receive government support to help them weather the storm. However, the limited number of private airlines operating in these regions may not survive a prolonged crisis.

Iraq has approximately five carriers, Lebanon one, Syria two (one of which is government-owned), and Jordan three; all of which could suffer significantly if the conflict drags on.

In contrast, Gulf airlines have contingency plans in place, Al-Zahrani said, although they are not immune to the repercussions.

Increased flight distances and restricted airspace will present logistical and financial burdens, though Gulf carriers are more resilient and often absorb the extra costs themselves. In many cases, rerouting results in only minor extensions - around 20 minutes - which allows airlines to maintain stable pricing.

He cited exceptions, such as some northern-bound Kuwaiti flights to Europe that typically rely on Iraqi airspace. These will now need to reroute via Saudi airspace, then over the Mediterranean to reach Europe, significantly increasing flight durations and operating expenses.

Al-Zahrani also pointed out that many transcontinental flights between East and West, which pass over Saudi and Iraqi airspace, will be disrupted if closures in conflict zones persist. This may force airlines to reschedule, reroute, or even suspend certain long-haul routes if they become economically unfeasible.

Aviation-sector companies are considered foundational contributors to national budgets, particularly in countries where the industry plays a major economic role. According to Al-Zahrani, these entities are typically the first to suffer in the event of military conflicts, especially as oil prices rise and long-haul operations become increasingly expensive.

Observers warn that if Iran were to close the Strait of Hormuz - a vital maritime corridor connecting the Arabian Gulf to the Gulf of Oman and the Arabian Sea - it would further heighten concerns for both maritime and air transportation companies, given the anticipated spike in insurance costs and risk premiums should the crisis continue.

Economic analyst Marwan Al-Sharif told Asharq Al-Awsat that airlines may be able to navigate the crisis if it remains short-lived, especially those operating in proximity to the warring parties. However, if the conflict drags on, the resulting losses could grow more severe, weakening the financial viability of many carriers amid rising fuel costs, airspace restrictions, and surging insurance rates.