Interested to buy property in Abu Dhabi? If yes, then you need to understand the local laws. Abu Dhabi has strict rules to protect property buyers and renters.
These laws cover everything from property ownership to rental agreements. Different rules apply to UAE citizens, Gulf country residents, and foreigners. You can find info on property registration, mortgages, and areas where foreigners can purchase.
The government has made property investment easier and safer. These laws help secure your investment and boost the property market.
Be sure you grasp these rules to make smart choices when buying property in Abu Dhabi.
Law No. (19) of 2005 Concerning Real Estate Ownership
Ownership Rights
UAE nationals have the right to own, buy, sell, and dispose of residential, commercial, investment, and agricultural lands, as well as buildings constructed for special purposes. However, they are prohibited from changing the designated purpose of these properties.
GCC Citizens’ Rights
Citizens of Gulf Cooperation Council (GCC) countries may own real estate within designated Investment Zones. They have the right to carry out dispositions or entail any original or subordinate right on these properties.
Non-UAE Nationals’ Rights
Non-UAE nationals can own floors (but not the land) in Investment Zones. For extended periods, they can also have usufruct and Musataha rights on properties in Investment Zones.
Investment Zones
The Executive Council is responsible for issuing resolutions on the regulations of Investment Zones and the means of service provision within them.
Public Housing Units
Nationals can register and convey public housing units allocated to them. However, they are prohibited from disposing of these units without permission from the Executive Council.
Expropriation
Expropriation of real estate ownership, usufruct, Musataha, or any other real right is only allowed for public benefit or according to the document proving that right, and must be compensated fairly.
Industrial and Leased Lands
Industrial lands and lands leased from the Department are fully government-owned. Nationals may buy these lands according to regulations set by the Executive Council.
Registration and Transfer of Rights
Real property ownership and other real rights are not transferred between parties or to third parties without registration. This applies to lease contracts with terms over four years as well.
Inheritance
Real property, usufruct rights, or Musataha rights are registered in the name of heirs after submitting a decree of distribution. If one of the heirs is a non-national, other heirs may purchase their share at market value or seek a court order to sell the property and distribute the proceeds.
Law No. (2) of 2007 Concerning the Amendment of Some Provisions of Law No. (19) of 2005 on Real Estate Ownership
The definition of “disposition” in Article (1) of Law No. (19) of 2005 has been amended by removing the phrase “pursuant to the provisions of the Civil Transactions Law.” This change broadens the scope of what can be considered a disposition in real estate transactions.
The definition of “nationals” has been expanded and renamed to “nationals and the like.” This new definition now includes:
Natural persons holding UAE nationality according to prevalent laws, as well as companies and establishments wholly owned by them.
The Government of the UAE and governments of other emirates.
Government agencies, bodies, entities, corporations, institutions, funds, and councils wholly owned by the government.
Ownership Rights
Article (3) of the amended law now states that the right of ownership of real properties is confined to nationals and the like, as well as persons, companies, and entities designated by an Executive Council resolution. This change allows for more flexibility in determining who can own real property in Abu Dhabi.
GCC Nationals’ Rights
The law clarifies the rights of Gulf Cooperation Council (GCC) nationals:
GCC nationals and legal persons wholly owned by them may own real property in investment zones.
They can dispose of or acquire any original or subordinate real rights on these properties.
The Executive Council will set regulations governing these rights.
Musataha Contracts
The Executive regulations will establish the conditions, provisions, and terms of Musataha contracts for real properties outside investment zones. This applies to contracts concluded with non-nationals or entities not wholly owned by nationals or GCC citizens.
Non-UAE Nationals’ Rights
Article (4) of the amended law outlines the rights of non-UAE nationals:
They may own and acquire all original and subordinate real rights in real property located within investment zones.
They can exploit, use, and dispose of such property.
The law grants them the right to own apartments, floors, and local units without time limitation, and the right to own the land on which these properties are built.
Inheritance
Article (6) addresses inheritance issues:
If one of the heirs of a real property is not a national or from a GCC country, they must transfer their share to a national within two years from the date of acquiring ownership.
If the transfer is not completed within this period, the property will be sold at a public auction organized by the concerned court, unless the competent authority decides to own it at a fair market value.
Registration Requirements
Article (7) emphasizes the importance of registration:
Ownership of real property and other real rights are not established or transferred between concerned parties or to others except by registration.
The effects of registration extend to the contracting parties and their public and private successors.
Lease Contracts
Article (12) deals with lease contracts:
Lease contracts with terms exceeding four years must be registered in the real estate register.
Non-registration of these contracts limits their effect to a maximum of four years.
Law No. (2) of 2007 highlights the significant changes made to real estate ownership regulations in Abu Dhabi, particularly regarding the rights of nationals, GCC citizens, and non-UAE nationals, as well as the registration requirements for various real estate transactions.
Law No. (10) of 2013: Changes to Real Estate Ownership in Abu Dhabi
Background and Context
Law No. (10) of 2013 makes important changes to Law No. (19) of 2005, which controls real estate ownership in Abu Dhabi. Sheikh Khalifa bin Zayed Al Nahyan, who rules Abu Dhabi, issued this update on December 15, 2013 (which matches 12 Safar 1435 in the Islamic calendar).
Key Change
The law has an impact on a single key change to Article (3) of Law No. (19) of 2005. This change relates to real estate ownership rights in Abu Dhabi.
Amended Provision
The first paragraph of Article (3) of Law No. (19) of 2005 now reads:
“Nationals and similar individuals as well as people, companies and entities determined by a resolution from the Crown Prince or the Chairman of the Executive Council, have the right to own real estate.”
Continuity of Other Provisions
Keep in mind that this amendment revises the first paragraph of Article (3) of Law No. (19) of 2005. The rest of the original law’s provisions, including those changed by Law No. (2) of 2007, stay in force unless modified by this or other amendments.
Law No. (13) of 2019: Changes to Real Estate Ownership in Abu Dhabi
Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi, issued Law No. (13) of 2019 on April 16 2019 (which matches 10 Shaaban 1440 Hijri). This law changes specific parts of Law No. (19) of 2005, which controls real estate ownership in the Emirate of Abu Dhabi. These changes show how the economy is changing and match the emirate’s plan to bring more investment into its real estate market.
Key Amendments
The law focuses on two main articles: Article (3) and Article (4) of Law No. (19) of 2005. These amendments significantly alter the landscape of real estate ownership and rights in Abu Dhabi.
The new Article (3) redefines who can acquire properties in Abu Dhabi:
a) Citizens and Equivalent Persons
This category includes both natural and legal persons who are considered citizens or equivalent to citizens under UAE law.
b) Public Shareholding Companies
Companies where non-citizen shareholding does not exceed 49% are now allowed to acquire properties.
This is a significant change that opens up real estate ownership to a broader range of companies, potentially attracting more foreign investment.
c) Special Cases
The Crown Prince or the Chairman of the Executive Council has the authority to issue resolutions allowing specific individuals or entities to acquire properties.
This provision allows for flexibility in granting ownership rights on a case-by-case basis.
d) Non-Citizens in Investment Zones
Non-citizens, both natural and legal persons, are entitled to acquire all original and collateral in-kind rights over properties located within designated investment zones.
They also have the right to dispose of these real estates.
This amendment significantly expands the rights of non-citizens in specific areas, likely aimed at boosting foreign investment in targeted development zones.
The new Article (4) addresses long-term usufruct and musataha rights:
a) Disposition of Rights
Holders of usufruct or musataha rights for more than ten years can dispose of these rights, including mortgaging them, without requiring the property owner’s consent.
This provision enhances the rights of long-term leaseholders, giving them more control over their interests in the property.
b) Property Owner’s Rights
The property owner can only mortgage the property with the consent of the usufruct or musataha right holder.
This ensures that the interests of long-term right holders are protected.
c) Flexibility in Agreements
- The law allows parties to agree to terms different from these default provisions, providing flexibility in contractual arrangements.
Law No. (3) of 2005 Concerning The Regulation Of Real Estate Registration in The Emirate of Abu Dhabi
Law No. (3) of 2005 regulates real estate registration in the Emirate of Abu Dhabi. It defines key terms such as Emirate (Abu Dhabi), Competent authority (Department of municipalities and agriculture or future established municipalities), Registrar (manager of Real Estate Registration Division), and Real property (all kinds of real estate properties).
Real Estate Registration Division
Each competent entity must establish a Real Estate Registration Division. A registrar is designated for each division and is directly responsible to the chairman of the competent entity. The division’s responsibilities include creating and maintaining a real estate register, recording dispositions on real properties, notarizing signatures, keeping original documents, and obtaining title search certificates.
Registration Requirements
All dispositions on real estates that create, transfer, or extinguish original or subordinate real rights must be registered. This includes irrevocable final rulings proving such rights. Non-registration results in the non-establishment, non-transfer, or non-extinguishment of these rights. Lease contracts with terms over four years must also be registered.
Rights of Nationals
Nationals may buy, sell, and dispose of residential, commercial, investment, and agricultural lands, as well as buildings set for specific purposes. However, they are prohibited from changing the designated purpose of these properties. Public housing units allotted to nationals can be registered and conveyed, but nationals are prohibited from disposing of them without Executive Council permission.
Fees and Exemptions
First registration of real property upon allotment and registration of inheritance are exempt from fees. Other dispositions are subject to fees as prescribed in the attached schedule, which the chairman of the Executive Council may amend.
Information Sharing and Document Transfer
The competent authority may share information recorded in the register with the concerned authorities. All registers and documents established under previous laws are to be transferred to the registrar in the competent authority.
Enforcement and Repeal
Any disposition violating the law’s provisions, regulations, and implementing decisions is deemed void. The head of the competent authority is responsible for implementing decisions necessary for enforcing the law. This law repeals previous laws on land registration and any provisions contrary to its stipulations.
Law No. (3) of 2015: Regulation of the Real Estate Sector in Abu Dhabi
Law No. (3) of 2015 was issued by Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi, to regulate the real estate sector in the Emirate. This law aims to establish a comprehensive framework for real estate activities, addressing various aspects of the industry.
Key Definitions
The law provides definitions for several important terms:
Country: The United Arab Emirates
Emirate: The Emirate of Abu Dhabi
Government: The government of Abu Dhabi
Executive Council: The Executive Council of the Emirate
Department: The Department of Municipal Affairs
Municipality: Includes Abu Dhabi City Municipality, Al Ain City Municipality, Western Region Municipality, and any future municipalities in the Emirate
Competent Entities: The Department or government entity designated by the Department
Chairman: The Chairman of the Department
Real Estate Registers
The law establishes or recognizes several types of registers:
Real Estate Register: Established according to Law No. (3) of 2005, for real estate registration in Abu Dhabi
Real Estate Development Register: A handwritten or electronic register for keeping data and documents related to real estate development projects
Initial Real Estate Register: A handwritten or electronic register for registering dispositions and rulings related to real estate units sold off-plan
Licensees
The law defines licensees as persons working in the real estate sector who are licensed by the Department. These include:
Developer
Broker
Brokerage Office
While the document snippet is truncated, it’s clear that the law aims to regulate various professionals involved in the real estate industry.
Real Estate Development Projects
- Off-Plan Sales: The law has an impact on how developers market and sell off-plan real estate units. It requires them to get necessary approvals before they advertise or take part in exhibitions.
- Project Escrow Accounts: Each project needs an escrow account. Developers must put buyers’ payments and project funding into these accounts.
- Performance Bond: The account trustee needs to keep at least 5% of the total project value. This serves as a performance bond to cover possible defects after the project ends.
- Project Delays: If a project is more than six months late from its expected finish date, the Department can penalize the developers.
Owners’ Associations and Property Management
- Formation: The law sets up Owners’ Associations to run and take care of shared areas in real estate projects.
- Rights and Obligations: Real estate unit owners have certain rights and duties in the Owners’ Association, like voting and paying for services.
- Common Parts: The law controls how shared areas in real estate projects are looked after and kept up.
Mortgages and Property Rights
- Mortgage Registration: To be legal, mortgages need to be written down in the Real Estate Register or the Initial Real Estate Register.
- Developer Mortgages: Builders can put a mortgage on project land to get money for building, following certain rules and telling buyers.
Dispute Resolution and Penalties
- Committees: The law sets up different committees to settle rent and real estate arguments. These include a Rent Dispute Settlement Committee, an Appeal Committee, and a Cassation Committee.
- Penalties: The law spells out punishments for breaking rules such as doing real estate work without the right license or registration.
Implementation and Authority
- Executive Regulations: The Department Chairman has the power to create Executive Regulations to put the law’s rules into action, but the Executive Council must approve them.
- Department Powers: The Department of Municipal Affairs gets a lot of control to watch over and manage the real estate field. This includes giving licenses to professionals, keeping records, and creating standards for real estate growth and deals.
Chairman of the Executive Council Resolution No. (4) of 2011 Concerning the Rules and Procedures of the Registration of Lease Contracts in the Emirate of Abu Dhabi
Resolution No. (4) of 2011 was issued by Mohamed bin Zayed Al Nahyan, Crown Prince and Chairman of the Executive Council of Abu Dhabi. This resolution establishes detailed rules and procedures for the registration of lease contracts in the Emirate, building upon previous laws such as Law No. (20) of 2006 concerning the lease of premises and regulation of landlord-tenant relationships.
Key Definitions:
Emirate: The Emirate of Abu Dhabi
Department: The Department of Municipal Affairs
Concerned Municipality: Includes Abu Dhabi City Municipality, Al Ain City Municipality, Western Region Municipality, and any future municipalities in the Emirate
Competent Entities: Governmental departments and entities concerned with service delivery (e.g., gas, electricity, telecommunications) and those with activities related to real estate subject to this resolution
Competent Committees: Rent Dispute Settlement Committee, Committee of Appeal, and Cassation Committee formed under Law No. (20) of 2006
Lease Contract: A contract with a duration not exceeding four years, concluded under Law No. (20) of 2006
Register of Lease Contracts: The register prepared by the concerned municipality to record lease contracts
Key Provisions:
1. Mandatory Registration
All lease contracts for residential, commercial, industrial, or professional purposes must be registered in the Register of Lease Contracts. Registration is a prerequisite for the validity and enforceability of the contract.
2. Registration Process
Landlords or their legal representatives must submit lease contracts for registration within one month from the date of conclusion. The concerned municipality verifies the authenticity of the submitted documents and the conformity of the contract with legal requirements.
3. Required Documents
Original lease contract signed by both parties
Copy of the landlord’s identity document
Copy of the tenant’s identity document or trade license
Copy of the property ownership document or power of attorney for property management
Any additional documents required by the concerned municipality
4. Registration Fees
A fee of 3% of the annual rent value is charged for registration, with a minimum of AED 100 and a maximum of AED 5,000.
The Executive Council may amend these fees as necessary.
5. Contract Amendments and Renewals
Any amendments to registered lease contracts must be recorded within one month from the date of amendment. Contract renewals must be registered within one month from the expiry date of the original contract.
6. Penalties for Non-Compliance
Failure to register lease contracts or amendments within the specified timeframe results in a fine of AED 1,000 for each month of delay, up to a maximum of AED 10,000.
7. Dispute Resolution
The competent committees have the authority to settle disputes arising from lease contracts. Unregistered contracts may not be considered by these committees unless there are justifiable reasons for non-registration.
8. Data Sharing and Confidentiality
The concerned municipality may share lease contract data with competent entities for official purposes. All parties involved must maintain the confidentiality of the information in the Register of Lease Contracts.
9. Exemptions
Certain types of contracts may be exempted from registration by a decision of the Chairman of the Executive Council.
10. Implementation and Transition
The Chairman of the Department of Municipal Affairs is responsible for issuing the necessary decisions to implement this resolution. Existing lease contracts must be registered within six months from the effective date of this resolution.
Chairman of the Executive Council Resolution No. (49) of 2018 Concerning Municipal Service Fees in the Emirate of Abu Dhabi
Resolution No. (49) of 2018 was issued by Mohamed bin Zayed Al Nahyan, Crown Prince and Chairman of the Executive Council of Abu Dhabi. This resolution establishes detailed regulations for municipal service fees in the Emirate, building upon and refining previous laws and resolutions related to real estate registration, ownership, and leasing.
1. Real Estate Registration Fees
| Transaction Type | Fee |
|---|---|
| Sale | 1% to 4% of transaction value (determined by Executive Committee), split equally between buyer and seller unless agreed otherwise |
| Grant (between close relatives) | Commercial: AED 10,000 Investment: AED 5,000 Agricultural: AED 3,000 Residential: AED 3,000 |
| Land consolidation | Commercial: AED 10,000 Investment: AED 5,000 Agricultural: AED 3,000 Residential: AED 3,000 |
| Will | AED 3,000 |
| Mortgage | 0.1% of mortgage value (max AED 1 million per transaction) |
| Mortgage redemption/replacement | AED 1,000 (administrative fee) |
| Transfer of Mortgage | AED 200 |
2. Lease Contract Registration Fees
| Service | Fee (AED) |
|---|---|
| Registration of lease contract by landlord | 100 |
| Amendment of lease contract by landlord | 50 |
| Amendment of lease contract at tenant’s request | 50 |
| Renewal of lease contract by landlord | 100 |
| Registration of real estate data by landlord | 1,000 |
| Registration of leased unit data (per unit) | 5 |
| Opening an account in Tawtheeq system | 200 |
| Creating a username for Tawtheeq system | 300 |
| Training for Tawtheeq system (per user) | 300 |
| Transferring administration of leased property | 50 |
| Modifying landlord’s account details | 50 |
| Printing duplicate of registered lease contract | 50 |
| Creating/Renewing/Amending property administration agreement | 50 |
3. Annual Municipal Fees for Tenants
- 5% of the rental value (minimum AED 450)
- 2.5% to 10% for leased residential villas on granted residential land (percentage set by Executive Committee)
- UAE nationals are exempt from these fees for residential lease contracts
4. Fees for Government-Allocated Lands (Lease or Musataha)
| Municipality | Lease value per square meter |
|---|---|
| Abu Dhabi City | 75 fils |
| Al Ain City | 50 fils |
| Al Dhafra Region | 25 fils |
- Registration fee: 5% to 10% of contract value (set by Executive Committee)
5. Fees for Vacant Land Dispositions
- 15% of land value for dispositions of vacant granted commercial and investment lands
6. Infrastructure Fees
One-time fee based on Gross Floor Area (GFA) for commercial and investment land:
| Land Classification | Fee per square meter of GFA |
|---|---|
| Inside Abu Dhabi Island | AED 250 |
| Outside Abu Dhabi Island | AED 200 |
7. Fees for Increasing Land Area
| Land Type | Fee |
|---|---|
| Residential | 5% of market value of increased area |
| Commercial/Investment | 75% of market value of increased area |
| Agricultural | 50% of market value of increased area |
8. Fees for Planning Services
| Service | Fee |
|---|---|
| Changing land use in development regions | AED 100 per square meter of floor area |
| Permit for commercial activity on residential/investment land | AED 100 per square meter of land |
| Changing land use outside development regions | 20% of land value |
| Permit for investment building on residential land | AED 100 per square meter of land |
9. Other Fees
| Service | Fee |
|---|---|
| Issuing search certificate (per land parcel) | AED 100 |
| Issuing replacement for lost title deed | AED 500 |
| Issuing real estate valuing certificate | Commercial: AED 5,000 Investment: AED 3,000 Agricultural/Residential/Other: AED 1,000 |
| Issuing property search certificate | AED 100 |
| Issuing a map | AED 200 |
| Issuing “to whom it may concern” certificate | AED 100 |
Note: For any transaction not specifically listed (including Musataha or Usufruct contracts), a fee of 4% of the transaction value typically applies.
Exemptions
Certain transactions are exempt from real estate registration fees, including:
- Subsequent rulings on inheritance registration related to estate division
- Registration of land and real estate endowed to charity
- Registration of property owned by government entities, public authorities, and wholly government-owned companies
Conclusion
Abu Dhabi’s real estate laws and regulations represent a comprehensive framework designed to foster a transparent, efficient, and attractive property market. Key themes include:
Gradual liberalization of ownership rights for non-nationals.
Strong focus on consumer protection.
Emphasis on market transparency through mandatory registration requirements.
Regulation of real estate professionals to raise industry standards.
Specialized dispute resolution mechanisms.
Use of fee structures and regulations as economic tools to influence market behavior.
The legal landscape continues to evolve, reflecting Abu Dhabi’s commitment to balancing economic growth with social stability and national interests. Future developments may include further refinements to foreign ownership rules, enhanced digital integration in property registration and management, and new regulations addressing emerging trends such as sustainable development and smart city initiatives.
For all stakeholders in Abu Dhabi real estate sector, staying informed about these legal frameworks is crucial for navigating the dynamic property landscape and capitalizing on its opportunities.
