According to Law No. 19 of 2005 Concerning the Regulation of the Real Estate Sector in Abu Dhabi, expats can only own floors and flats, not land.The new Abu Dhabi property law is a positive move toward standardizing real estate standards in the capital, which will boost investment in the emirate and across the UAE. The Abu Dhabi real estate law aims to address a variety of investor and developer issues while drawing on Dubai\’s investment experience and landscape. As a result, this law is seen as a significant step forward as well as a source of legal protection for stakeholders.

The real estate market in the United Arab Emirates continues to show signs of improvement. The market is reacting to the shifting terms of the scenario around the options available to investors looking to engage in real estate. Abu Dhabi is the country\’s fastest-growing emirate, with a surge in real estate construction announcements in the last year.

The following four main systems allow expatriates to acquire assets in the form of floors and flats alone, not lands:

• Usufruct: Expatriates are allowed to own residential properties for 99 years. A usufruct contract holder has the right to use the property and its facilities without being able to alter them.

• Long-term lease: A long-term lease is one that is signed for a minimum of 25 years.

• Ownership: Residential units are granted to expatriates with 99-year ownership deeds, allowing them to fully sell the apartments and villas they buy (land is not included).

• Musataha: Expatriates can hold residential apartments for 50 years, with the option to renew for another 50 years provided both parties agree. For a defined period of time, Musataha contracts grant the owner the right to use, construct, or alter the property.

Amendments:

The Abu Dhabi Real Estate Law was amended in April 2019 to allow foreigners to own real estate assets in Abu Dhabi investment regions.The prior law\’s Articles 3 and 4 have been replaced by the current law.

Article 3 (i)provide that property rights are limited to three types, as follows:

• Emirati citizens, natural or legal persons
• Public holding companies with non-nationals owning no more than 49% of the company
• Any person to whom the Abu Dhabi Crown Prince or the President of the Executive Council issues a decision

Non-UAE citizens, whether natural or legal persons have the right to possess and acquire all original and in-kind rights in real estate properties located inside investment regions, according to Article 3 (ii).

Article 4 states that holders of a \’usufruct\’ or\’musataha\’ for more than 10 years have the right to dispose of the property, including the right to mortgage, without the approval of the landlord. The landlord, on the other hand, may not mortgage the property unless the usufruct or musataha holder agrees. The parties may agree to something different in both cases.