News from Dubai February 2008 CBP has recently expanded lane Sheikh Zayed Road, being InsideIn this thisissue... issue... its’ law practice to Dubai. Alex completely empty is unlikely to Ostermayer, a long-standing be repeated in the near future. Recent Dubai events 001 construction partner at CBP is While Dubai thought it necessary now permanently based in Dubai, to close the city for the day, CBP’s Current working out of the office of Lutfi & there were no road closures in UAE work 002 Co, a well established commercial Abu Dhabi when George Bush law firm in the UAE and a long was there the previous day. Developing Dubai standing associated firm of CBP. Land Laws 004 The rain arrives We thought you may be interested While Dubai is hot, dry and CBP Seminar 004 in some of the aspects of life in Dubai as well as the range of humid for a large part of the year, matters and legal services CBP winter can be quite pleasant, with CBP invited to Jeddah has been working on. temperatures in the low 20s and economic forum 005 little humidity. It is not unusual for Alex Ostermayer in there to be a few wet days during Sydney 005 winter. This year the rain arrived Recent Dubai the day after George Bush left Greg Skehan events town and continued for two days in Dubai 005 – not the torrential downpours that January has witnessed a number we get in Australia, but steady of unusual occurrences in Dubai: rain none the less. The result was utter traffic chaos. Dubai’s US President’s visit road drainage system does not As part of his recent visit to the cope with rain and flooded roads Middle East, the United States became the norm. Schools and president, George W Bush was in government offices were closed the United Arab Emirates for two for the next three days and Dubai days, spending one day in Abu again ground to a stand-still. Dhabi, the capital of the UAE, and in Dubai on Monday 14 January. The World is not enough George Bush’s visit resulted in the Nakheel, the major property unusual situation of Dubai being developer in Dubai, whose projects in “shutdown” mode for most of include the 3 Palm developments the day. The day of the visit was at Jumeirah, Jebel Ali and Deira, declared a public holiday on 12 the Dubai Waterfront development hours notice and all major arterial (a new city for 1.5 million people) roads and bridges were closed to and The World, a man made sand the public. Dubai became a ghost island development of the Dubai town for about 10 hours. The coast replicating a map of the sight of the usually congested 12 world, has recently announced that News from Dubai The World is no longer enough sale contracts, preparing and that it will be undertaking required miscellaneous the development of The Universe. agreements, and advising Like The World, The Universe will on individual transactions. consist of man-made sand islands, The sales contracts that have this time depicting the sun, the been produced by CBP for moon and the swirling universe. Abu Dhabi are innovative It is to be located in between documents which have set the Dubai coast and The World the benchmark for freehold and will take 15 to 20 years to retail sales in the Emirate. This complete. Yet another innovative innovative work has resulted way to increase the availability in CBP being asked by one of of waterfront properties in Dubai Abu Dhabi’s largest property although the impact of any of developers to discuss strata the recent announcement on the title and community title selling price of properties in The issues in the context of the World is yet to be determined! existing Abu Dhabi land laws. n Acting for another major Abu CBP’s current Dhabi property developer with world wide interests on the UAE work purchase of a high rise prestige The CBP Dubai office has been commercial office tower busy in the past few months and the sale of commercial with an increasing range of office and retail space within legal work. Examples of matters the tower. Again providing currently being handled by CBP advice on Abu Dhabi land out of the Dubai office include: law, negotiating the purchase contract, preparing standard n Acting for an Abu Dhabi sale contracts, preparing property developer on the required miscellaneous freehold purchase of two agreements and advising on high rise prestige residential individual sales transactions. towers on Al Reem Island in Abu Dhabi and the sale of n Acting for a leading Australian apartments within the two architectural firm with business towers. CBP is also providing operations in Asia on the advice on the recently enacted establishment of operations Abu Dhabi land laws which in Dubai and Abu Dhabi. allow the sale and purchase This includes advising on of freehold properties in Abu employment laws applicable Dhabi in certain circumstances, in Abu Dhabi and Dubai and Click to return negotiating purchase contracts, assisting with the preparation to contents preparing standard freehold of employment contracts Colin Biggers & Paisley 002 News from Dubai for newly recruited staff, n Acting for and advising and advising on consultancy two separate Australian agreements for projects recruitment agencies on that the architectural establishing operations in the practice has been offered UAE. One agency specialises in the UAE and Qatar. in the construction and engineering industry, the n Acting for and advising an other in high level recruitment Australian building and for the legal industry. construction services company on obtaining the necessary n Acting for and advising an licences and approval to Australian marina design establish a branch office in and construction services Dubai and/or Abu Dhabi for the company on establishing provision initially, of project operations in the UAE. management services. n Advising an Australian company n Acting for a US insurance considering establishment company on the establishment of operations in the UAE on of insurance operations intellectual property rights in the UAE. This includes protection in the region. advising on the appropriate n Advising a major world- requirements for the wide computer hardware formation of a public trading manufacturer with extensive company and the making of operations in the Middle East an initial public offer (IPO). on indemnities and guarantees n Acting for and assisting a required by a Saudi Arabian leading Australian construction government agency in company, with extensive relation to a major supply. operations in the Middle East, n Acting for a leading Abu Dhabi on contractual problems insurance company on tracing encountered with a major business assets in Hong Kong. construction project in Qatar. n Advising a major Indian n Acting for and assisting a property development Chinese construction company company on a master project to recover compensation for management agreement termination of a construction for a substantial property contract relating to an development in Dubai. industrial development in Umm Al Qwain, one n Advising an Australian UAE of the UAE emirates. resident on the establishment Click to return of a food and catering to contents business in the UAE. Colin Biggers & Paisley 003 News from Dubai n Providing initial advices drawing on models from various to numerous Australian parts of the world, including the businesses considering setting UK, Singapore, South Africa and up operations in the UAE. Australia. One of the reasons why Australians are so prominent in the property development industry in Developing Dubai Dubai is because of their expertise in the establishment and regulation Land Laws of multi-dwelling developments. While the UAE, and Dubai in The Dubai government has particular, has for a number recently announced that it will of years now had one of the be proclaiming legislation dealing hottest property markets, the with the establishment of “owners number of residential apartments association” for multi-apartment that are being constructed buildings, the requirements for is staggering. The legislative maintenance of the buildings and framework has been struggling the establishment of compulsory to keep pace with the scope insurances in respect of the and size of the developments. maintenance of such building and The UAE is similar to Australia their day to day management. in that each of the 7 emirates Details of the proposed laws have has its own land law system and not yet been made available. some are more sophisticated When proclaimed the legislation than others. To complicate the will no doubt create business situation further, some of the Free opportunities in Dubai for insurers, Trade Zones also have their own strata managers and those rules relating to land ownership. involved in building maintenance. One of the problems that the UAE legal system has been grappling with is the on-going management CBP Seminar and maintenance of high-rise Having anticipated these multi-apartment residential developments, CBP is planning a developments. None of the UAE seminar to be held in Dubai in May, emirates have to date legislation dealing with topics such as strata equivalent to the New South Wales developments and management Strata Titles Management Act, but and applicable insurances and this could be changing in Dubai. professional indemnity insurance Given that it has had the greatest and construction risk insurance, degree of property development particularly as they relate to major to date, Dubai has been at the projects. More details about the Click to return seminar will be provided in the to contents forefront of producing a more sophisticated land law system, next issue of the Dubai Newsletter. Colin Biggers & Paisley 004 News from Dubai CBP invited Alex Ostermayer to Jeddah in Sydney economic forum In the week before Easter, Alex will be back in the Sydney office.