Can an expatriate own a property in the Emirates?
Buying real estate in Abu Dhabi
Law No. (19) of 2005 regarding real estate ownership allows expatriates to own real estate in the form of apartments only, without land, through several forms of ownership:
The Abu Dhabi government offers four main systems that allow foreigners to own real estate in the emirate.
Ownership system
Specific ownership bonds for foreigners include ownership of residential units without land for a period of about 99 years, and give them the full right to dispose of the apartments and villas they buy without the land.
Musataha system
Foreigners can own residential units within certain investment areas under “musataha” contracts for a period of 50 years, renewable by agreement of both parties for a similar period, which enables construction on unexploited land. Musataha contracts entitle the owner to enjoy the use of the property and build or change it within a specified period of years.
Utilization system
Foreigners can own residential units within certain investment areas under “usufruct” contracts for a period of 99 years. The usufruct contract gives its owner the right to enjoy the use of the property and its facilities without the ability to change it.
Long term rental system
The right to rent units for an initial period of no less than 25 years.
Freehold areas in Abu Dhabi
There are 9 areas in Abu Dhabi where foreigners are allowed to own real estate, which are:
Yass Island
Saadiyat
The Reem
Al Maria
For Lulu
Al Raha Beach
And Sayeh Al-Sadira
the countryside
Masdar City
Read more about the regulations for foreigners owning real estate in Abu Dhabi..
Note: A law amending some provisions of Law No. 19 of 2005 regarding real estate ownership in Abu Dhabi
In April 2019, His Highness Sheikh Khalifa, in his capacity as Ruler of the Emirate of Abu Dhabi, issued a law amending some provisions of Law No. 19 of 2005 regarding real estate ownership, according to which non-citizens were granted ownership of real estate located within investment areas and any disposal thereof.
The new law stipulates replacing the texts of Articles 3 and 4 of the law, as the new Article (3) stipulates that the right to own real estate is limited to the following categories:
Citizens and equivalent natural and legal persons
Public joint stock companies in which the percentage of non-citizens’ participation does not exceed 49%
Anyone regarding whom a decision is issued by the Crown Prince or the Chairman of the Executive Council.
The law stipulates that non-citizens, whether natural or legal persons, have the right to own and acquire all original and accessory real rights over real estate located within investment areas, and they have the right to make any disposal of these real estate properties.
The new Article (4) stipulates that anyone who has a usufruct or musataha right for a period of more than ten years and without the owner’s permission may dispose of this right, including mortgaging it. The owner of the property may not mortgage it except with the approval of the holder of the usufruct or musataha right, and in both cases the two parties may agree. Otherwise.
Read the full news on the Abu Dhabi Government website – TAMM
Buying real estate in Dubai
Foreigners are allowed in Dubai:
Ownership in areas designated as freehold areas
Gaining the right to own property absolutely, not restricted by time
The right to use the property, or the right to rent it for a period not exceeding 99 years in the areas specified by the Land Department.
Article 3 of Legislation No. 3 of 2006 regarding determining areas for non-citizens to own real estate in the Emirate of Dubai indicates the areas designated for freehold ownership (pages 115-117). Title deeds for properties owned in the Emirate of Dubai are issued by the Land Department, and no age is required for ownership in the emirate.