A recent amendment in Abu Dhabi, real estate law, has amended Abu Dhabi Law number 19 of 2005 regarding the Regulation of Real Estate Sector (the Real Estate Law) by Abu Dhabi Freehold Property Law 2019 (the Freehold Law). Post the declaration of the new law, Abu Dhabi will tread on the heels of allowing foreign expatriates to hold freehold property in certain designated areas in Abu Dhabi which was earlier prohibited or was restricted to a certain extent. The foregoing statement, as confirmed by Property Lawyers of Abu Dhabi, the Emirate, for a longer period, did not have any provision allowing expatriates to invest in real-estate. Over a period of 2 decades, UAE and especially the Emirate of Dubai has seen significant alterations in property law with respect to ownership in real-estate for foreign nationals.
Following the very footsteps and with an intention enhance property investment in Abu Dhabi, H.H. Sheikh Khalifa bin Zayed Al Nahyan, the President of UAE and Ruler of Abu Dhabi has taken this initiative to permit foreign nationals to hold property in certain areas.
The Freehold Law has amended Article 3 and 4 of the existing Real-Estate Law. Wherein, Article 3 of the Freehold Law outlines the categories of individuals having potential to acquire property within the Emirate, including Emirati citizens, public holding companies not in excess of 49% shareholding by foreign nations, people approved by Abu Dhabi Crown Prince or President of the Executive Council. Subsequently, it further stipulates that foreign nationals, natural or legal persons are authorized to acquire real-estate in the investment areas. This implies UAE expats of all nationalities would now be able to purchase freehold property in Abu Dhabi investment zones, which incorporate prominent regions, for example, Yas, Sadiyat, Reem islands, Masdar City, Al Raha Beach. The stride towards expansion will inflate foreign investment in the real-estate sector and will make Abu Dhabi as a prevalent investment hub.
Prior to the issuance of the new Law, expatriates were confined to invest in Abu Dhabi properties either in restricted investment zones for 99-years or moustaches for 50-years leases or 25 years long leases or usufruct. Nevertheless, the new law affirms that foreign nationals in Abu Dhabi can now claim property premiums, including freehold, musataha and usufruct premiums inside certain assigned investment zones. Under the Property Law, a freehold proprietor will have full ability to manage the land, obtain a loan or discard the interest.
Real-estate Lawyers strongly believe that these advancements will even the odds between Abu Dhabi and Dubai and will ensure improved investments in Abu Dhabi. The progressions will expand lucidity in the market and will help ingrain the sense of permanency.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
