Capital gains in Dubai?

Buried deep in the recent IMF report about Dubai is a very interesting nugget. Describing how the property bubble got out of hand, the IMF team say that the Dubai authorities are looking at other ways to limit "renewed speculative pressures in the real estate sector":

• "More frequent and closer monitoring of bank practices related to this sector;
• "The possible introduction of a capital gains tax on property transactions (registered by the Dubai Land Department) and on securities that derive their value from real property;
• A more active Real Estate Regulatory Authority (Rera) as concerns compliance with Anti-Money Laundering regulations by property developers, brokers and other intermediaries. This could help slow down transactions that do not require local financing."

Obviously, the large font is my emphasis. But this seems like a major change on the horizon that would have far reaching consequences for property investors and home buyers in Dubai. We're unlikely to find out from Rera what the plan is for the time being. The regulators of the property sector in Dubai have pulled out of the public sphere for the last year.

* username: rupertbu