The UAE is set to bolster the stability of the local real estate sector with the latest anti-money laundering regulation

In another grand move to fight terrorist financing and money laundering, the UAE introduced a new regulation regarding cash and cryptocurrency payments. Payments above AED 55,000 (USD 14,974) will be subjected to additional reporting to the UAE Financial Intelligence Unit (FIU) for the acquisition and sale of freehold properties. This change makes the UAE one of the first countries worldwide to implement such a scheme for property transactions using virtual assets.

According to the WAM report, which states

the reporting mechanism requires real estate agents, brokers, and law firms to obtain and record the identification documents of the parties to the applicable transaction, among other relevant documents related to the transaction. The rules apply to both individuals and corporate entities that are parties to the above real estate transactions.

According to Abdulla bin Touq Al Marri, Minister of Economy, the implementation of the highest levels of transparency are set to promote financial and economic stability and prevent malpractice within the business community. The latest scheme clearly demonstrates the country’s advancing approach to the global combat against money fraud in any shape or form.

An array of the latest initiatives are aimed to increase transparency within the real estate sector, which will help the local market to thrive. According to the Dubai Land Department, a total of AED 1.6B (USD 435.6M) worth of transactions was recorded on August 8, which proves there is a strong demand for residential properties in Dubai.

In July, apartment sales were up compared to the same period last year. Among the top performing areas, Palm Jumeirah has an increase of 18.8%. Burj Khalifa had an increase of 17.8%, and Jumeirah Beach Residence had an increase of 13.8%. Villa sales continue to break records with an annual average surge of 29.9%, compared to a modest 7.9% in annual capital gains for apartments. The top performing areas for villa purchases were also up year over year. Arabian Ranches had an increase of 36%. Jumeirah Islands had an increase of 34.4%, and Jumeirah Village had an increase of 30.6%.