UAE capital to set up authority regulating real estate

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(Xinhua)
Updated: 2009-01-05 15:26

ABU DHABI -- The government of Abu Dhabi, capital of the oil-rich United Arab Emirates (UAE), will set up a new authority to regulate the real estate sector within the next few months, local newspaper Khaleej Times reported on Monday.

The aim of setting up the authority is "to chalk out an integrated system that streamlines property rent, sale and purchases, including suggesting legislation and rules that lead to stability," Jawaan bin Salem Al Dhahiri, Chairman of the Municipal Affairs Department of Abu Dhabi, was quoted as saying.

The new authority will eliminate the realty brokers in general, and the hike in rents in particular, he said.

"It was felt that the properties sector was in dire need for such an authority, to curb the unscrupulous traders, which affects people, taking into account that the real estates sector was the main cause for inflation in the country," he added.

Studies published by Abu Dhabi Department of Planning and Economy in April 2008 showed that rents constitute 58 percent of the overall inflation rate in Abu Dhabi, followed by energy and transport with 15 percent, and foodstuff with 11 percent.