The emirate applies local laws regarding
real estate, streamlining rent, ownership or the
use of a Property as debt insurance. These laws
are very important.
Law no (10) of
1972 regarding real estate registration, incorporated
in decree no (1) of 1972
The law on using property as a debt insurance
of 1973, modified with law no (2) of 1989
Implementation procedures on the auction sale
of property in accordance with the law on using
property as a debt insurance
Amiri Decree no (1) of 1981, on joint ownership
Law no (6) of 2001 on owner-tenant relations
in Sharjah
Law no (4) of 1980 on multi-storey building ownership
It is
worth mentioning that real estate registration
law no (4) states that ownership is restricted
to UAE nationals. Exceptions to the rule are
granted with the approval of the Emirate’s Ruler
and with the conditions that he deems appropriate.
For investors who set up their projects or establishments
on rented lands or property, the law organizing
the relations between the landlord and tenants
guarantees their rights and stability. There
is a rent complaint commission at the municipality
that intervenes to solve any emerging problem.
It sets rules and regulations that specify rent
value levels and the commission’s decision is
considered final, unless either party takes
the case to a civil court within 15 days from
the issue of the commission’s order.
The Legal
and Organizational Framework in Sharjah in the
Light of Federal Laws of the State
In line with the provisions of the UAE constitution
of 1971, the federation has the legislative
responsibility as explained in provisions 120
and 121. Federal laws are applied in Sharjah
being part of the seven-emirate federation.
Several Laws have
been enacted, including:
The Federal
Law Organizing Industrial Affairs no (1) of
1979
Commercial Registration Law of 1975
Anti-Fraud Law in Commercial Transactions no
(4) of 1979
Specifications and Measurements Law of 1976
Employment Relations Law no (8) of 1988
The Central Bank and Fiscal System Law no (10)
of 1980
Trade Agency Law no (18) of 1981, modified with
Law no (18) of 1988
Maritime Commercial Law no (1) of 1981
Trade Company Law no (8) of 1984, modified by
Law no (13) of 1988
Insurance Company and Brokers Law no (9) of
1984, modified by Law no 14 of 1986
Trade Mark Law no (37) of 1992, modified by
Federal Law no (8) of 2002
Intellectual and Industrial Property Protection
Law no (44) of 1992. Law no (17) of 2002 was issued
to organize the affairs of Intellectual and Industrial
Property Protection, which consequently annulled
Law no (44) of 1999
Trade Transaction Law no (13) of 1993
First:
Federal Law Streamlining Industrial Affairs
and Encouraging Industrial Projects.
Law no (1) of 1979 was issued to streamline
industrial affairs. It involves a preference
for industrial projects and includes procedures
for obtaining agricultural production license.
Implementation procedures were included in ministerial
decree no 26/D of 1980, and published in the
official gazette in issue no 83 on September
30, 1980.
Industrial Projects Subject to Industrial Law
Provisions:
Article no (2) of law no (1) of 1979
states that all industrial projects in the UAE
are subject to this law with the exception of
the following projects:
They include:
Industrial
projects involving oil and liquefied
natural gas, petroleum, gas mineral
raw materials and their purification
and pre-manufacturing preparation
Industrial projects whose capital does
not exceed Dh250,000 and in which not
more than 10 employees work, or those
using mobile force not higher than 5 hp
Franchise projects governed by special
laws or by agreements to which the state
is tied
The state’s general plan projects handled
and implemented by the federal government
Preferential Standards in Industrial Projects:
They include:
Providing
the requirements of social and economic
plan and the state’s industrial development
program
Providing the needs of the country in
meeting local consumption
The extent to which dependable local
raw materials are available for the manufacturing
process
The possibility of carrying out projects
in areas picked by the government
Capital Ownership of The Industrial Project:
Article (8) of the law stipulates that
national capital in an industrial venture should
not be less that 51 per cent.
The application for an industrial project,
submitted to the Industrial Department at the
Ministry of Finance and Industry, must be accompanied
by a feasibility study that shows the objective
behind the project, its primary resources, annual
production costs and the capital needed to achieve
its aims. It should also show the finance mechanism,
required workforce, marketing potential and
any other information relevant to the project.
