Law No. 19 of 2005 states that UAE Nationals and legal entities wholly owned by them have the right to freehold ownership to property anywhere in the Emirate of Abu Dhabi. The exception to this is that the Law permits GCC nationals the right to own freehold land within the designated “investment zones”.
Investment Zones are zones designated in decision of the Executive Council and within which:
- Only UAE Nationals and corporate entities wholly owned by UAE Nationals have the right to own property;
- Nationals of Gulf Cooperation Council States may own property situated within the Investment Zones and may exercise or create any Principal or Ancillary Right in Rem over such property;
- Non-UAE nationals shall have the right to own multi-storey developments, excluding the plot of land itself, in the Investment Zones and shall be entitled to all interests therein.
Moreover, the law does grant non-UAE and GCC nationals the rights to own apartment units or entire floors in buildings in investment zones. However, right of ownership of an apartment or floor in a building does not include by association a right to a share in the ownership of the underlying land on which the building is situated.
Non-UAE and GCC Nationals may also acquire a right of usufruct (the right to use and exploit property belonging to another person) for a period of 99 years, and a right of musataha (the right to build and develop on the land belonging to another person) for a period of up to 50 years. Both of these rights are renewable by mutual consent.
What is generally offered in Abu Dhabi is a right of usufruct for 99 years. This is a right which is recognized by the lending institutions and which they recognize as suitable security for a mortgage.
According to Abu Dhabi 2030 Plan, the key investment zones are:
- Reem Island
- Raha Beach
- Al Reef
- Seih Sediera
- Masdar
- Yas Island
- Saadiyat Island
- Lulu Island
- Sowwah Island
Source: www.upc.gov.ae
In addition to the investment zones listed above, we have also included Building Material City, Hydra Golf Walk and Hydra Village as part of our study as each of these projects offers expatriates the opportunity to purchase a property.
