In his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No. (32) of 2020 transferring the ownership of certain educational land in Dubai to the Knowledge Fund Establishment.
The properties subject to this Decree are plots that had been granted to government entities and real estate developers, including those leased to third parties, and undeveloped properties granted to individuals and private entities that have not been developed within five years of the date of the grant or those that have ceased to have education activity.
Furthermore, plots allocated to federal entities, foreign communities and civil society organisations are subject to this Decree if they were not developed within five years of the date of allocation, education activity has ceased in the allocated land or, the purpose of the allocation has lapsed.
Properties excluded from the articles of this Decree include plots granted to public education facilities, those within education zones like Dubai Academic City and Dubai Knowledge Park, as well as mortgaged land and common land that include educational plots.
Nevertheless, real estate developers can retain the land granted to them prior to the activation of this Decree if they agree to pay 75% of the land’s market value to the Knowledge Fund Establishment in annual installments within a period not exceeding 34 years.
The Department of Land and Property in Dubai will determine the market value of the educational land within three months of the date of activation of this Decree.
The real estate developer must notify the Knowledge Fund Establishment of its desire to retain the land within six months of its market value being determined.
Accordingly, the Knowledge Fund Establishment will sign an agreement with the real estate developer.
Starting from the date of activation of this Decree, and after transferring ownership of educational lands to the Knowledge Fund Establishment, the Establishment replaces government entities and real estate developers in all rent and leasehold contracts subject to this Decree.
The Decree is effective from the date of its publication in the Official Gazette.