New mortgage law announced for Dubai

The Dubai government has issued a new mortgage law. The new law, issued by Sheikh Mohammed bin Rashid Al Maktoum, the prime minister and vice president of the United Arab Emirates (UAE) and ruler of Dubai, aims to help better regulate Dubai's property market.

Dubai's new mortgage law will come into effect 60 days after it is published in the official gazette and specifies that mortgage contracts must be registered with the Dubai Land Department (DLD), reports Overseas Property Professional (OPP).

The new law also requires the size of the loan to be specified as well as the repayment period and the value of the property being mortgaged. Furthermore, all mortgages taken out on property in Dubai must have an insurance guarantee.

OPP explains that Dubai's new mortgage law comes as the Emirate works to consolidate its booming property market . According to the DLD, the value of property transactions in Dubai in the first quarter of this year were up 10,000 per cent year-on-year on 2007's figures - Dh3.7bn compared to Dh38m.

Dubai's efforts to regulate its property market mean that it now tops the Global Real Estate Transparency Index from Jones Lang LaSalle.

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