The laws relating to the registration of musataha in free zones are not as clear as those of the continent. Since each authority in the free zone has its own independent regulatory authority, each free zone will have most of its own land rental requirements. Some authorities in the free zone require the registration of such a right, others do not. Below is a brief description of how each authority in the free zone applies the registration of leases. Dubai World Central (DWC) is a relatively new air and logistics area in Dubai, consisting of eight districts: logistics, aeronautics, Al Maktoum International Airport, humanitarian, residential, commercial, leisure, exhibition and commercial area. Currently, the only land that can be leased in the DWC is located in the logistic city. Land lease periods generally last 25 years and can be extended for an additional 25 years. Manufacturing and industrial activities are not permitted in the logistics city; activities can only include logistics. In addition, only air freight companies are licensed, shipping freight companies that were not created in DWC. Parcel subletting is not authorized by dWC and there is no obligation to register leases with the Dubai State Department or any other authority within the United Arab Emirates as a Musataha Law.
However, some banks may require such a document for financing, so applicants may be required to register Musataha with the DLD to meet the Bank`s financing conditions. However, there is no DWC requirement and it is not mandatory for applicants to register the lease as a Musataha right with another authority. “The Musataha agreement is a right granted to the owner that allows him to build one building or plant on land belonging to another, in accordance with an agreement signed between more than 10 years.” Health investors wishing to develop hospital facilities in the United Arab Emirates need to consider how to acquire the land to build their facilities and determine the type of property to be acquired. The acquisition of property rights other than the acquisition of property is a reasonable financial way to reduce the expenses that should be spent on the development of health facilities such as hospitals. The granting of a musataha right is a popular way for investors in the health sector to acquire property rights for the construction of health facilities, as a musataha right confers a right to the construction and ownership of this building during the life of the musataha. In this article, we examine how investors in the healthcare sector can use musataha rights to develop hospital facilities and the benefits of acquiring Musataha rights and other options available to foreign investors based on foreign ownership rules in the UAE. – an obligation for the Musataha right holder to complete construction within 24 months of the signing of the contract; The DLD registration fee payable on a Musataha contract is equal to 1% of the total annual rent, which is less than the cost of a long-term lease (4% of the total value of the lease) or a Usufruct contract (2% of the total value of the building).