The final Law Update of 2022 is here, and it’s packed full of articles. The double edition features two focus areas, first is a spotlight on Energy and Resources and second we feature a collection of articles on Transport and Logistics. The developments occurring in these sectors in the MENA region are unprecedented and our lawyers cover vast themes for you.
The Energy and Resources focus features topics such as diversifying energy resources, solar PV, mining in the Middle East, renewable energy and green hydrogen. From a transport perspective, we draw attention to the Bahrain metro project, discuss the challenges and remedies associated with the repossession of an aircraft, and there is advice on what to consider should a party vary the terms of a shipping contract.
This edition navigates you through updates from across jurisdictions such as, Oman, Jordan, Saudi Arabia, Egypt, Iraq, Qatar, and the UAE. Each article is timely and provides insights into legal issues and cases that are affecting these sectors across the region.Read the full edition
There has been some confusion in the market in relation to what completion percentage developers must reach before the Real Estate Regulatory Authority (“RERA”) will permit them to commence off-plan unit sales.
Several reports in the media have stated that for developers to commence off-plan sales, they will be required to:
We have sought clarification on this from RERA, and are pleased to confirm that a deposit of 50% of the construction value, or equivalent bank guarantee, is no longer required. RERA will apply the previous requirement of 20% of the construction value, i.e. developers will be required to complete construction of 20% of the project or deposit funds for the value of 20% of the construction value into an escrow account or via a bank guarantee.
There are other separate requirements of RERA in relation to licensing off-plan sales, which developers will need to consider when registering projects in order to obtain the required licenses for selling off plan and opening escrow account.
Our Real Estate team would be happy to discuss the above in more detail with you. Please do not hesitate to contact us.