What is Tayseer Initiative?
If you have any interest in property in Dubai then you’ve probably come across mention of the Tayseer Initiative. It begs the question, ‘What is Tayseer Initiative?’
Tayseer is one of two initiatives launced to revive building projects that had halted after Dubai’s economic crash (the other is Tanmia, see below). Tayseer is a guaranteed funding initiative launched in June 2010 by Dubai’s Real Estate Investment and Promotion Centre (REIPC), which is essentially the investment arm of the Dubai Land Department (DLD). It initially covered 45 projects across popular building areas such as Business Bay, Dubai Marina and Jumeirah Lake Towers. It has since been expanded to cover a further 158 projects.
The Real Estate Investment and Promotion Centre initially signed agreements with Wasl Properties, Emaar and Mohammed bin Rashid Housing. Some private developers have also taken over projects such as Indian Developer, Pacific Ventures which has taken over four projects.
Al Manal Development’s ‘The Lakeside Residence’ in Jumeirah Lake Towers was the first project to be completed under the Tayseer scheme.
Tanmia and Tayseer Schemes – What are the differences?
The Tanmia Initiative differs from the Tayseer Initiative in that it seeks to take over projects completely. The Tayseer Initiative, on the other hand, seeks to finance financially troubled projects directly from the state’s coffers via the Real Estate Investment and Promotion Centre (REIPC), the investment arm of the Dubai Land Department (DLD). Tanmia adopts abandoned projects without an investor or a developer whereas Tayseer offers assistance to developers that experience financial deficits.
What are the Criteria to qualify for the Tayseer Initiative?
To qualify for the scheme, projects need to have:
- Adequate infrastructure planned or in place
- the property’s escrow trust account must have been properly managed with full and timely financial reporting
- The building’s technical report must show that a minimum 60 per cent of construction is completed
- A minimum 60 per cent of the project must have already been sold
- Progress on the project needs to be in accordance with the construction schedule set by the Real Estate Regulatory Agency (RERA).
If such a project is approved of and enrolled under Tayseer, the Dubai authorities via RERA, will ensure that the developer is credited bank funds to aid completion.
The Tayseer initiative is not to be confused with the Tanmia Initiative, which has similar objectives, but helps projects with different criteria.