UAE Real Estate / Property LawLaw No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment

Article (2) The following words and expressions, wherever mentioned in this Law, will have the meaning indicated opposite each of them unless the context implies otherwise: Emirate: The Emirate of Dubai. Ruler: His Highness the Ruler of Dubai. Government: The Government of Dubai. ©2019 The Supreme Legislation Committee in the Emirate of Dubai 1Every effort has b een made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must b e made to the original Arabic text. In case of conflict, the Arab ic text will prevail.

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Law No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment Page 2 of 10 Executive Council: The Executive Council of the Emirate of Dubai. MRHE: The Mohammed bin Rashid Housing Establishment. Board of Directors: The board of directors of the MRHE. Chairman: The chairman of the Board of Directors. CEO: The chief executive officer of the MRHE. Housing Services: The various housing solutions provided by the MRHE. This includes granting land plots; constructing dwellings; giving loans or financial grants for the purpose of constructing dwellings, covering the costs of their maintenance, or reconstructing or extending existing dwellings; allocating move-in ready dwellings located within the residential compounds owned by the MRHE; renting out dwellings; and providing any other housing solutions determined by the Board of Directors. Beneficiary: A person who receives a Housing Service pursuant to this Law. Scope of the Law

Article (6) For the purpose of achieving its objectives, the MRHE will have the duties and powers to: 1. grant residential land plots to Beneficiaries; 2. construct dwellings and residential compounds and allocate them to Beneficiaries; 3. rent out dwellings to Beneficiaries; 4. provide soft loans and financial grants for the purpose of constructing or buying dwellings; covering the costs of their maintenance; or extending or reconstructing existing dwellings; 5. refurbish the dwellings of UAE nationals located in old areas of the Emirate in order to encourage residents to settle in such areas and improve Housing Services therein; and perform any act it deems appropriate in these areas, including buying, owning, reconstructing, or restoring dwellings, in coordination with the competent Government Entities; 6. own, build, lease, and rent out land plots and other real property; 7. design and construct, by itself or through corporations and companies contracted for this purpose, residential units and compounds to accommodate Beneficiaries; and design and implement the utility works related to these residential units and compounds in coordination with the competent Government Entities; 8. establish corporations and companies that support the MRHE in achieving its objectives, including those related to dwelling construction, maintenance, and restoration; 9. manage the financial operations related to housing loans by itself or through any financial or banking institutions contracted for this purpose; and 10. provide any other Housing Services the Board of Directors deems conducive to achieving the objectives of the MRHE. Capital of the MRHE

Article (9) The Board of Directors is the highest authority of the MRHE. In this capacity, the Board of Directors will have the authority to: 1. set, and oversee the implementation of, the general policy of the MRHE; 2. consider Housing Service applications and issue the relevant resolutions; 3. approve the grant, withdrawal, and recovery of Housing Services in the cases prescribed in this Law and the resolutions issued in pursuance hereof; 4. approve the draft annual budget and financial statements of the MRHE; 5. determine the amounts of loans and financial grants provided by the MRHE; 6. contract companies, corporations, and other entities for the purpose of implementing housing projects or managing the financing of such projects; 7. form permanent or temporary sub-committees that will assist it in performing its duties, and determine their duties and powers. The resolutions of such sub-committees will be enforceable only upon their approval by the Board of Directors; 8. issue the resolutions and regulations that are required to regulate the work and services of the MRHE; 9. delegate any of its powers to the CEO; and 10. exercise any other duties or powers related to the MRHE objectives. Meetings of the Board of Directors

Article (10) a. The Board of Directors will convene at the invitation of the Chairman at least once every two (2) months or where necessary. Meetings of the Board of Directors will be valid if attended by the majority of its members, provided that the Chairman or vice chairman is in attendance. Resolutions of the Board of Directors will be passed by

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Law No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment Page 5 of 10 majority vote of attending members, and in the event of a tie, the chair of the meeting will have a casting vote. b. The minutes of meetings of the Board of Directors will be entered in records signed by the chairs of the meetings and attending members. c. The Board of Directors may, as it deems appropriate, invite experts and specialists to attend its meetings, but they will have no vote. CEO

Article (11) a. The MRHE will be managed by a CEO, who will be appointed pursuant to a resolution of the Chairman of the Executive Council. b. The CEO will have the duties and powers to: 1. propose the strategic plans of the MRHE and submit the same to the Board of Directors for approval; 2. implement the approved general policy and the resolutions issued by the Board of Directors; 3. prepare the draft annual budget and financial statements of the MRHE, and submit the same to the Board of Directors for approval; 4. propose the implementing bylaw of this Law, and submit the same to the Board of Directors for approval; 5. propose the initiatives, programmes, and projects pertaining to the work and activities of the MRHE; 6. appoint and supervise the employees of the MRHE and issue the decisions related to them; 7. represent the MRHE before third parties; 8. take the necessary action to manage the daily work of the MRHE; and 9. exercise any other functions delegated to him by the Board of Directors. c. With the exception of the powers delegated to him by the Board of Directors, the CEO may, as he deems appropriate, delegate any of his powers under this Law to any of the MRHE employees.

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Law No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment Page 6 of 10 Land Mortgage

Article (15) a. Neither a Beneficiary nor his heirs after his death may dispose of any granted dwelling or land plot in any manner that involves transfer of ownership without obtaining the approval of the Ruler. b. A Beneficiary or his heirs after his death may dispose of any granted dwelling or land plot in any manner that relates to its use or utilisation in accordance with the implementing bylaw of this Law. c. Any disposition undertaken or any agreement made in breach of the provisions of this Article will be void and may not be registered or have any legal effect against the MRHE or third parties.

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Law No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment Page 7 of 10 Financial Loans

Article (18) a. In case of death or partial or complete disability of the borrower which led to a decrease in his income, or in case of compelling circumstances that render him incapable of paying the loan instalments, the Board of Directors may, upon the request of the borrower or his heirs, as the case may be, cease or defer the monthly deduction of loan instalments or decrease their amounts. b. The MRHE may, in accordance with the requirements of the public interest, insure the loans it provides to Beneficiaries to cover any risks that may arise as a result of failure by Beneficiaries to repay loans in whole or in part. c. A Beneficiary may be exempted from paying his loan instalments in whole or in part pursuant to a resolution of the Ruler. Maturity of Loans

Article (19) Where a Beneficiary fails to settle three (3) consecutive payable instalments, the loan provided to the Beneficiary, or any outstanding balance thereof, will become immediately due for payment. Where no settlement is reached with the Beneficiary, the MRHE may, pursuant to a resolution of the Board of Directors, proceed with the execution on his property to recover the outstanding amount of the loan or payable instalments. The resolution of the Board of Directors in this respect will be deemed a writ of execution which is enforceable through the Execution Department of the Dubai Courts. The decisions of

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Law No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment Page 8 of 10 the Execution Judge in this respect will be final, and will not be subject to any form of appeal or challenge of execution by the Beneficiary. Withdrawal of Housing Services

Article (20) a. In addition to claiming from the Beneficiary any financial liabilities owed by him to the MRHE, the Board of Directors may withdraw a Housing Service from the Beneficiary in any of the following cases: 1. where he provides false information, commits fraud, or submits forged documents when applying for a Housing Service; 2. where he commits any act or undertakes any legal disposition stipulated in Article (15) of this Law; or 3. where he ceases to meet any of the requirements for availing of the Housing Service. b. A violating Beneficiary must surrender the property subject of the obtained Housing Service within thirty (30) days from the issue date of the withdrawal decision, failing which the decision will be executed through the Execution Department of the Dubai Courts as a writ of execution. The decisions of the Execution Judge in this respect will be final and will not be subject to any form of appeal or challenge of execution by the Beneficiary. c. A Beneficiary whose Housing Service is withdrawn will forfeit his eligibility for other Housing Services for a period of three (3) years from the issue date of the withdrawal decision. Penalties

Article (21) Without prejudice to any stricter penalty stipulated in any other legislation, a contractor, an engineering consultant, or any other person who is proven to have colluded with a Beneficiary for the purpose of unlawfully obtaining a Housing Service or using such service for other than its intended purpose will be punished by imprisonment for not less than one (1) year and not more than two (2) years and a fine of not less than fifty thousand Dirhams (AED 50,000.00) and not more than one hundred thousand Dirhams (AED 100,000.00), or either of these penalties.

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Law No. (4) of 2011 Concerning the Mohammed bin Rashid Housing Establishment Page 9 of 10 Law Enforcement Officers