Page 287 - UAE Truncal States

Chapter Seven

realised as early as 1959, when a Land Department was set up. It
began with the very difficult task of determining the ownership of
land within the older built-up tribal quarters. This was particularly
important when trading in this land accelerated and more merchants
realised the benefits to be derived not only from possessing, as in the
past, shops, warehouses and a comfortable family house, but also
from investing in land and constructing on it tall buildings with flats
and offices to rent. It was equally essential to establish the ownership
of properly which the municipality had to demolish while widening
roads for vehicular traffic. The roads which were constructed were
winding and narrow to minimise the costs of demolition and
compensation, because at that early stage very little money was
available. The Municipality and the Ruler paid some compensation,
but wherever possible only half of one compound was expropriated;
the other half then rose in value because of the commercial
opportunities which easy access by car had brought.43
There are no written regulations governing land ownership in
Dubai, but the accepted pattern is based on the principle that land
outside the built-up areas, and reclaimed land, belongs to the Ruler.
Certain areas in the town have also traditionally belonged to the
Ruler and his family, and the rest of the built-up land is owned by
individuals who either obtained it as a gift from the Ruler or bought
it. A lively property market has developed, and citizens of Dubai,
Kuwaitis, Bahrainis, Iranians and Indians buy and sell land among
one another. Land may also be owned by Europeans provided that
they reside in Dubai. Property as an object of speculation and for the
purpose of letting may not be owned by foreign individuals nor
companies. Foreign companies are expected to take out leases on
land and to build offices and houses or else to rent ready-built
accommodation.
Much of the land which is owned by the Ruler is managed as an
asset of the State; some of it is allocated to public purposes, such as
roads, parks and schools. The funds which the Ruler derived from
selling or leasing land were used for financing public projects, which
were, however, not subject to formal public authorisation. Leases to
foreign companies had usually about eight to twelve years’ duration;
after that period the land and all immovables would revert to the
Ruler, but in many instances the leases were extended under the old
terms even though the value of the land and the building had risen
considerably.

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