P.O. Box: 392222
United Arab Emirates
Phone: +971 438 97400
A Few Words About Dubai Holdings
Dubai Holding is an investment company owned by the government of UAE that p[erates across the globe.
Dubai Holdings has extensive and diversified investments in services like real estate, business parks, telecom as well as hospitality, media, healthcare and financial services.
The ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum is the majority stakeholder while the Chief Operating Officer is Fadel Al Ali. Ahmad Bin Byat is the CEO and Mohammed Al Gergawi is the Executive Chairman.
As of 2012, it had revenues that amounted to no fewer than 9.2 billion AED. Established in October 2004, it is headquartered in Emirates Towers in Dubai
Dubai Holdings and Its Business OperationsDubai Holding has subsidiaries across business groups, the most prominent among them being:
- The DHCOG, Dubai Holding Commercial Operations Group- A management and development firm that looks after business in real estate, telecom, business parks and the hospitality sector.
- The Jumeriah Group which owns and looks after an extensive portfolio of luxury resorts and hotels.
- DPG or Dubai Properties Group which is into the community development and real estate sectors. It further extends its portfolio with:
- Business Bay
- Jumeirah Beach Residence.
- The TECOM Investments firm, which is into the operations and development of onshore business parks as well as free trade zones such as the:
- Dubai Media City
- Dubai Healthcare City
- Dubai Internet City
- Dubai Knowledge Village
- Dubai Studio City
- Dubai Design District
- Dubai Industrial City and
- The Dubai Outsource Zone, which is basically an economic zone for outsourcing companies in Dubai.
TECOM has further investments in firms such as:
- eHosting Datafort- A company that provides internet hosting as well as IT security for the various companies that are based in Dubai.
- The AMG or Arab Media Group
- Nexgen Advisory Group
- Global Village
- EMPOWER or the Emirates Central Cooling Systems Corporation, a district cooling company
- The EMS or Energy Management Services
- The Emirates International Telecommunications through which Dubai Holdings has a stake in Telecommunications. It has further stakes in firms such as
- Axiom Telecom
- The DHIG or Dubai Holding Investments Group overlooks the financial assets of Dubai Holdings through enterprises such as the Dubai International Capital or DIC and the Dubai Group.
Letter of Intent
The Letter of Intent or LoI, ais a document that outlines the agreement between two parties or more involved in a financial venture before coming to a final agreement. The LOI may vary from one agreement to another such as Asset Purchase Agreements, Lease Agreements, Share Purchase Agreements and overall Agreements which are required for the finalization of a large prospective deal.
Letter of Intent: Keys of Conception
The LoI is drafted to look like a contract but is not a binding agreement between the parties involved. However there are a few binding clauses in the agreement including clauses concerning non-disclosure agreements or the covenant to manage the negotiation in good faith. It may also take the shape of a formal contract if its intention is to formally bind the parties and can be presented as such to a court of law.
Basic Focal Point of LoI
Usually the letter of intent is presented by one party to the other for the clarification of points and to negotiates before the finalization and completion of signatures. The document can actually serve as a protection for the clients involved in the deal. It acts as a safeguard during negotiations of concerning the involved deals.
LoI: Objectives and Goals
The most common objectives of the Letter of Intent is to clarify the tenets or points of a financial deal or transaction. It also serves as a means to officially declare that the parties are on the terms of negotiation n a deal. It safeguards the deals from detoriating during the negotiation phase. The major function of the letter is to clarify the methods and details concerned with payments and credits dto third parties. It also ensures that the deal is carried out according to the rules and norms set by the state. The LoI is also considered as a term sheet which deals with the discussions carried out during the negotiation of any deal.
What is ‘Off-Plan’ Property?
In real estate, off-plan refers to property before construction has started. It is generally found that such pre-construction property are targeted towards developers of real estate as well as early adopters. Purchaser are able to secure loans at far better terms of finance from their lenders for off-plan projects.
Property investors can make significant capital gains through off-plan purchases. This typically happens as sellers of an off-plan estate tend to offer substantial financial incentives to those who adopt them early on. Discounts in response to sale plans are quite common. A rising market also provides for opportunity for the growth of capital when development cycles typically range on a year or two.
Advantages of Off-Plan Estates
- In case the area immediately surrounding the estate has access to infrastructure in the form of universities, roads, hospitals and other such public amenities, properties are supposed to be built in the coming few years become even more in-demand.
- When the housing market is witnessing rapid growth this sort of property becomes more lucrative as it is cheaper than constructed property. It also enables the buyer to specify apartment locations and features as the choice may be limited after some time.
Disadvantages of Off-Plan Estates
- In case the values of property witnesses substantial reduction, the loan value is often decreased and may be, as in some cases, be denied. This is truer if the construction is for an investment in comparison to a home. If such an event occurs the buyer may be obliged, under the terms of the contract, to buy the property at the price that was originally offered.
- It might also happen that the constructor finds himself out of business before construction ends leaving the buyer incapable to recover the advanced payments. Bank guarantees are used by countries undergoing recession such as Spain, so that they are protected from bankrupt builders. In times of recession this is a highly risky venture as inflated property prices plummet quickly without clear relief in sight.
- The last issue one might have with off-plan properties is that it may fail to match the expectations of the buyer. This may be due to material defects as well as subjective reasons.
What Does a Memorandum of Understanding Signify?
A memorandum of understanding or MoU is an agreement, which may be multilateral or bilateral, between two or more parties. It is an expression the intentions and relations between the respective parties. It indicates a line of action that is common between the parties dealing with off-plan projects or otherwise. It is usually put into use when the concerned parties are hesitant towards committing legally. The case might also be that it is not possible to come to an agreement that is enforceable legally. Either way it is a more formal alternative to what might be stated simply as a gentlemen’s agreement.
Is a Memorandum of Understanding Legally Binding?
The legality of the document as a legally binding contract depends on the absence or presence of four well defined legal elements. These elements, also often referred to as the ‘four corners’ are the intention, consideration, offer and acceptanceto be bound by the tenets of law.
Memorandum of Understanding: Companies and Governmental Law
MoU’s are put into use by various corporate firms as well as government agencies operating throughout Dubai in order to define relationships between agencies and companies. It is customary in UAE to refer to an MoU simply as a Concordat. It is primarily used tosolidify the business relationship between two parties.
MoU’s between parties over an off-plan project may also be used to declare their intentions in legal terms without the usage of legally binding provisions. Developers often prefer MoU’s for off-plan property as it benefits both parties in expressing the relation and agreements between them.
No Objection Certificates: A Legal Perspective
No Objection Certificate, or NOCs, are legal documents that are issued by any individual, organization, agency or institute to signify that there is no objections to the covenants of the issued certificate. It is required by most government departments in Dubai
Companies and No Objection Certificate
For example: Mr. Z from Dubai liquidates his business and wants to take the name of the company off the Dubai company name register. In order to do that, he is required to prove that the company in question does not owe any taxes to the government. So, he sets out on his task. He writes to the appropriate authorities in the Department of Revenue that he needs a certificate that states that all taxes have been duly paid by the company according to the records. Once they check the record, the Department of Revenue sends back a certificate of no objection stating that they have no reason to object the de-registration of Mr.Z's comapny.