Abu Dhabi amends rules for property ownership

Abu Dhabi’s government enacted changes to the emirate’s real estate law, to enable foreigners to own freehold property in designated investment zones for the first time, as part of plans to increase foreign direct investment and boost the economy.

Previously, ownership of land and real estate was only permitted for UAE and GCC nationals.

Under the legislative changes, residential units in special designated investments zones – such as one existing zone close to the international airport – will be registered under Abu Dhabi’s freehold law, with property ownership deeds issued to investors.

Foreign investors in Abu Dhabi real estate were previously typically granted leasehold arrangements with a maximum 99-year period.

“The modernisation of the real estate law reflects … the government vision to support and develop the business environment in Abu Dhabi, along with the development of investor services and procedures,” said Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, in a statement issued by the Abu Dhabi Executive Council.

Abu Dhabi’s state developer Aldar Properties welcomed the new law in a separate statement yesterday. Its Alreeman scheme – comprising plots of land for sale and residential development – is located in such an investment zone.

“This is a game-changing announcement,” said Aldar chief executive Tala Al Dhiyebi.

“It will not only drive the maturity of Abu Dhabi’s real estate market, but also increase transparency and provide clarity of title for property owners, increasing long-term investment, injecting more liquidity into the market and encouraging longer-term residency.”

The changes were enacted following a study examining the needs of the real estate sector, including meetings with stakeholders such as investors, developers and others, the Executive Council statement added.