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Dubai Ruler issues new law to regulate the timeshare industry

16 December 2020

HH Sheikh Mohammed bin Rashid Al Maktoum, the Vice-President and Prime Minister of the UAE and Ruler of Dubai issued Law No.14 of 2020 to regulate the timeshare industry in Dubai.

The new legislation forms part of the efforts by the government to improve the legal framework required for growth of economic sectors in Dubai, which includes tourism.

dubai timeshare

The law details a clear legal context for timeshare business activity, and aims to boost tourism and real estate sector in Dubai, improve investments in the vacation ownership sector, offer adequate residential alternatives for visitors and tourists and protect the rights of all parties in the industry.

The law also aims to regulate the timeshare industry in Dubai as per the best international practices.

The Dubai Department of Tourism and Commerce Marketing (DTCM) is responsible for monitoring all activities in the timeshare industry in Dubai. DTCM will develop the necessary terms and technical standards for timeshare facilities to obtain legal approvals and permits.

DTCM will also list and classify the residential units that are subject to the new law and will coordinate with the Dubai Land Department and Dubai International Financial Centre (DIFC) in all matters related to timeshare and in timeshare-related activities of brokers and developers, and in registration of timeshare contracts and right of usufruct in the Land Department.

Further, the Dubai Tourism will inspect timeshare facilities to ensure compliance with the law and any relevant bylaws. Further, it is responsible for receiving and investigating grievances or complaints against any individual or entity practising timeshare activities in Dubai without the necessary permit or approval.

The DTCM will establish and manage a database for all facilities operating a timeshare in Dubai, create legal terms for time-sharing, and will outline the requirements for timeshare advertisements and transfer of usufruct to another beneficiary.

The timeshare permits are valid for a one-year period. The Dubai Tourism is authorized to grant permits for nearly four years depending on a request from permit owner.

The new law explains the rights and obligations of timeshare facilities and their beneficiaries, the terms and conditions for cancelling or transferring of contract etc.

All individuals and entities undertaking timeshare business activities in Dubai will have to abide by the provisions of this law within six months of its effective date. The Director General of DTCM is authorized to extend this period, if necessary.

The Timeshare contracts that were concluded before activation of this law continue to remain valid, and they will be subject to the provisions of the new law when the contracts are being renewed. But, in cases of any incidents not covered by the contract arises in the interim, they will be subject to the new law.

The law nullifies any other previous legislation or challenges. The new law will also be published in the Official Gazette and is effective within six months from the date of its publication.

Robin Vinod

Writer/blogger who writes on topics such as travel, real estate, employment and everyday life on GCC countries.

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