The final countdown

Since discussions began on the introduction of timeshare to the Middle East, developers have been waiting for proposed legislation to be made official. According to industry insiders, the end is in sight. Holly Sands reports.

Enter, timeshare. One of the world's largest industries is set to penetrate the Middle East, bringing millions of dollars in revenue to the regions' economies and diversifying the real estate market.

"Dubai and other countries in emerging markets have the distinct advantage of addressing timeshare legislation at the beginning of the dynamic growth period," says Tom Bell, Senior Vice President of Governmental Affairs for Interval International.

The company is one of the world's largest timeshare operators with a network of more than 2,400 resorts around the world.

"It was announced in March 2008 at the Vacation Ownership Investment Conference hosted by Interval International that authorities from the Dubai Real Estate Regulatory Authority (RERA) and Dubailand have approved timeshare regulations for Dubai," says Bell, who in the past has represented Hilton Grand Vacation Club in his previous role as partner with Foley & Lardner, a US-based law firm.

"The approval represents recognition by the government and timeshare industry that Dubai may become one of the world's largest timeshare venues," he adds, though he acknowledges drafted regulations are yet to be established as a law.

"None of the UAE emirates have as yet published a timeshare law. A draft law was issued for Dubai but, as far as I know, it has not yet been published in the official gazette and is therefore not binding," says Sydene Helwick, partner at Dubai-based Al Tamimi and Company Advocates and Legal Consultants.

"The draft was issued some time back, and I think people have been commenting on that law. The land department has said it's on hold at the moment, pending the issue of the pre-registration law and the new mortgage law. Once those laws are up in a couple of month's time, they will look at issuing the new timeshare law."

By recognizing from the start the need for a law to govern the industry, Dubai appears set to avoid the past mistakes made in markets such as Europe, where initial legislation failed to protect consumers.

Many timeshare buyers fell victim to bogus agents, using aggressive marketing techniques and targeting people on the streets. Different scams included selling non-existent properties and taking money from people in order to bankroll marketing schemes for a company's existing timeshare projects.

"The first thing you find with legislation in place is that it gives consumers confidence there is legal protection for their investments," says Nick Turner, Managing Director of Group RCI for the Middle East.

His company was involved with drafting legislation for Dubai and contributing a wealth of knowledge from the markets of North America and Europe.

"The second thing is that legislation provides developers with the assurance this is now deemed an acceptable real estate model to develop and market," continues Turner, who is keen to encourage growth in the sector among Dubai's resident developers as well as international players.

"There have been an awful lot of developers waiting to learn that vacation ownership is an acceptable form of real estate," he claims, explaining the potential success of timeshare in Dubai lies with implications the sector could have for the emirate's tourism industry.

According to Turner, Emaar and Dubailand has already voiced interest in the holiday ownership sector.

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