DUBAI – His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has issued a new mortgage law as part of moves to regulate Dubai's booming real estate sector, the chief executive of the Real Estate Regulatory Authority said.

Following a 35-article decree issued by Shaikh Mohammed, the new law regulates the mortgage process in an effort to protect the rights of lenders and borrowers and improve transparency, Marwan Ahmed bin Ghalita said on Tuesday.

The law, which comes into effect 60 days after its publication in the official gazette, stipulates that mortgage contracts be registered with the land department, specifying the size of the loan, the repayment period and the value of the property to which the loan is linked.

'The new law is basically covering the mortgage procedures in Dubai ... All property purchases happening off plan for example and all financing must be registered at the land department,' said Ghalita. 'Before some were and some were not.'

The law requires that mortgages taken out on properties in Dubai be sold by registered financial institutions, and be insured.

'This is a positive step,' said Usman Rauf, analyst at Prime Group. 'As investors you would want as much protection and insure against general risk.'

The law also requires borrower and lender to present full financial documents when the mortgage is registered.

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For more information mail to mortgages@clre-dubaiproperty.com