A new code for corporate governance in Dubai's real estate market is being put together in a bid to improve the sector's transparency.

The Hawkamah Institute for Corporate Governance, Real Estate Regulatory Agency (RERA) and the Dubai Real Estate Institute (DREI) on Sunday signed a memorandum of understanding for the initiative.

The companies said the MOU reflected a "commitment towards improving the corporate governance regulatory framework".

Dr Nasser Saidi, executive director of Hawkamah, said: "Improving and strengthening corporate governance practices is one of the pre-requisites to protect property rights, gain and maintain investors', markets, home owners, tenants and their associations and other stakeholders' confidence in the real estate sector.

"The real estate companies, property developers and valuation agencies need to become more transparent through better reporting of transactions and prices."

He added that the landmark initiative would produce the first ever real estate corporate governance code in the region.

Marwan Bin Ghalita, CEO of RERA, said: "Our outlook is to have a real estate market that is up to the best international standards.

"By implementing governance practices Dubai's real estate market will be the first market in the region to adopt such an important initiative. This initiative will help make our market more transparent and investment friendly."