Dubai has introduced an online platform to boost the timeshare real estate market. Developed by Dubai’s Department of Economy and Tourism (DET), the portal allows would-be operators to submit applications for timeshare properties and receive permits as licensed operators and renew them every year.  

The online platform was launched to enable the emirate to achieve its objective of becoming a leading vacation home ownership destination. The portal is set to become a ‘one-stop shop’ for operators to register and apply for permits. 

Dubai aims to be a key player in the global timeshare (vacation ownership) market. The global timeshare market is expected to clock revenues of $21.7 billion by 2024.  

Timeshare properties are a step up from an Airbnb-style holiday rental and appeal to frequent visitors who enjoy longer stays. Timeshares are not very common in the UAE but there are operators with property listings in places such as Dubai Marina, The Palm Jumeirah and Jumeirah Lakes Towers.  

An earlier report by Interval International said Dubai had the potential to become the new Orlando or Las Vegas of the region’s timeshare industry. It reckoned that if just 5 per cent of the emirate’s 100,000 hotel rooms and serviced apartments were converted to timeshare, it could result in substantial annual sales volumes of Dh18.35 billion.  

Wait, what is timeshare? 

The timeshare concept originated in the UK in the 1960s and has gained popularity in Europe and several other regions of the world. For many years, timeshares were popular in Spain and Portugal in particular, appealing to families and retired couples trying to avoid expensive hotels.  

The timeshare concept enables customers to share ownership and use of vacation homes. Typically, a purchaser acquires either a real estate ownership interest or contractual right-to-use interest in a single resort or a collection of resort properties.   

A timeshare allows for partial ownership of a holiday home, and the owner can use it for a certain period of the year. The model can be applied to different types of hotel properties, such as vacation resorts, villas and apartments. 

Before the coronavirus pandemic started in 2020, the holiday homes industry recorded rapid growth as evolving consumer-spending habits meant timeshares offered a more flexible and affordable option for holidaymakers. 

How will Dubai’s timeshare portal help? 

Through the website, timeshare operators in Dubai can apply for permits. Holiday-home ownership encourages tourists to stay for longer and attract investment to the sector. The portal will “help pave the way for a world-class vacation ownership market in the emirate while also providing suitable alternatives to tourists encouraging them to spend multiple and extended holidays in the UAE,” said Helal Al Marri, DET’s Director-General.  

The portal will “help pave the way for a world-class vacation ownership market in the emirate while also providing suitable alternatives to tourists encouraging them to spend multiple and extended holidays in the UAE,” said Helal Al Marri, DET’s Director-General.  

“We are fully committed to taking robust measures and setting new benchmarks to enable us to remain competitive as a global tourism and investment hub,” said Al Marri. A global hub for tourism, trade and technology, Dubai is seeking to boost foreign investments and working towards making the city become more attractive for those seeking to work, live and holiday.  

A Dubai-wide initiative driven by a partnership between DET and Dubai Land Department, the portal is backed by coordination with Dubai International Financial Centre (DIFC). In line with the law, the DET, in collaboration with DLD and DIFC, maintains a database of property brokers, developers, establishments and operators. This allows the DET to supervise and inspect facilities to manage all contractual terms and disputes.  

The DET regulates timeshare contracts and handles grievances and complaints against anybody involved in timeshare activities in Dubai without securing the required permits and approvals. An important provision of the law is that all new timeshare properties will only be designated as part of new or existing hotel rooms while all legacy operators will be permitted to continue operations.  

Under the enhanced system implemented via the portal, no private properties will be given permits to operate timeshares. 

Dubai’s Timeshare Law 

Dubai created the legal framework for the market through its timeshare law to regulate the industry, protect the rights of all parties, cater to investors who want to buy a holiday home and stimulate more growth in the hospitality, tourism and property sectors. Just like hotels, timeshare properties will also be subjected to regular inspections by Dubai Tourism to ensure compliance with the rules. 

Dubai now has a regulatory model that supports customers, developers and vacation ownership operators with a legal framework in place for all parties involved in the domestic timeshare market.  

Dubai enacted Law No. 14 of 2020 on the Timeshare System in Dubai on December 10, 2020. It was announced in 2020 the Dubai Land Department is piloting a new scheme whereby investors can now obtain a title deed evidencing a fractional ownership interest in units located in certain hotel projects.  

The Dubai Timeshare Law does not deal with fractional ownership; it deals purely with timeshare and distinguishes between Timeshare Contracts and Points Contracts. Its stated objectives are to regulate the timeshare industry in line with international best practices and encourage tourism in Dubai and investment in tourism and real estate. It applies to all the free zones and investment areas in Dubai, including the DIFC. The law came into force on June 10, 2021 and affected entities had six months to implement and ensure compliance with the law beginning December 10, 2021.