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Abu Dhabi Real Estate Sector Regulation Amendments

Abu Dhabi Real Estate Sector Regulation Amendments


Real estate is a serious and considerably substantial part of the UAE’s economy, and while it is not the biggest, it is certainly up there. Abu Dhabi itself is the largest Emirate by sheer land size covering over half of the entire nation. However, at the same time, it has only the second highest population with Dubai being the most populated state.

Further to this, Abu Dhabi is very different in its economic makeup than Dubai. While Dubai is the most famous Emirate in the UAE, Abu Dhabi is the Capital and also the richest. It primarily relies on its oil-based wealth and this is what has driven the country as a whole to the position it currently finds itself in, making it an exciting prospect.

The Emirate also has a considerable amount of laws unique to it or under its jurisdiction, as do most of the others in the country, and the real estate regulation has recently received an amendment. The particulars of the change are as follows.

Ownership and Use of Property

The UAE President and also the Ruler of Abu Dhabi, His Highness Shaikh Khalifa Bin Zayed Al Nahyan has issued an amendment to the previous 2005 real estate sector regulation. There are two crucial changes and the first concerns amendments to Article 3 of the old law.

Part three of the Article 3 amendment specifies who can purchase property in Abu Dhabi. There are three types of individuals or organisations that may, and these include UAE nationals and citizens, Entities with a 49% or less foreign ownership and anyone for whom a decree or decision is issued for by the Crown Prince. Further to this, section two stipulates that non-nationals will be able to purchase property within specified and designated investment areas.

Article 4 of the amendment Concerns holder of usufruct; should ten years pass, the holder will be able to dispose of the property and mortgage without requiring the consent of the landlord, though the landlord will be unable to mortgage the property without the holders’ permission.