Joint Property Development Agreements

Real property development in the UAE is often undertaken on a joint venture basis. The reasons for this are similar to those in other jurisdictions and include sharing risk, specific development expertise, ownership restrictions on the property and the increase in public private partnerships.

However, it is vital the Joint Development Agreement (JDA) between the development partners is transaction specific and in line with the applicable law of the jurisdiction in which it is to be carried out.

In the UAE, a key requirement for a property development structure is the property being registered in the property owner's name. In addition the property may not be mortgaged and if mortgaged during the project development, the proceeds of the mortgage must be paid into an escrow account established for the project.