H.H. Sheikh Mohammed issues new law regulating timeshares in Dubai

WAM

New legislation to regulate the timeshare industry in Dubai has been issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

The law is part of the government’s efforts to enhance the legal framework required for the continued growth of the emirate's economic sectors, including tourism.

It provides a clear legal context for timeshare business activity.

The legislation aims to further stimulate tourism and real estate sector growth, encourage investments in ownership, provide adequate residential alternatives for tourists and visitors, and protect the rights of all parties in line with international practices.

Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) is responsible for overseeing all activities in the emirate’s timeshare industry.

Dubai Tourism will develop the terms and conditions and technical standards required for timeshare facilities to obtain legal permits and approvals.

It will also list and classify the residential units subject to the new law.

Furthermore, Dubai Tourism will coordinate with the Dubai Land Department and Dubai International Financial Centre in all matters related to the timeshare-related activities of developers and brokers, and registration of timeshare contracts.

It will inspect timeshare facilities to ensure compliance with this legislation and any relevant bylaws.

The Department is also responsible for receiving and investigating grievances and complaints against any individual or entity practicing timeshare activities in the emirate without obtaining the required permits and approvals.

Dubai Tourism will establish and manage a database for all facilities operating as timeshare property in Dubai, create the contractual terms for timesharing, and outline the requirements for timeshare advertisements and transfer of usufruct to another beneficiary.

Timeshare permits are valid for a renewable period of one year. Dubai Tourism is authorised to grant permits for up to four years based on a request from the permit owner.

The new law details the obligations and rights of the facilities and their beneficiaries, as well as the terms and conditions for cancelling or transferring the contract.

All individuals and entities undertaking timeshare business activities in Dubai must comply with the provisions of the law within six months of its effective date.

The Director General of Dubai Tourism is authorised to extend this period if required.

Timeshare contracts concluded prior to the activation of this law continue to be valid. They will be subject to its provisions after the contracts are renewed. However, if cases or incidents not covered by such contracts arise in the interim, they will be subject to the new law.

The legislation annuls any other law that contradicts or challenges its articles. 

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