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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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