Abu Dhabi Property Law 19 of 2005

For those interested in investing in Abu Dhabi, the following property law highlights under what conditions foreigners can own property in certain investment areas in Abu Dhabi. The investment areas include, Saadiyat Island, Yas Island, Al Reef Area, and Al Reem Island. I'll have to look into it but I believe there are a few more investment areas out there. The info is courtesy of the Abu Dhabi Real Estate Center http://www.adrec.ae/.

Law (19) of 2005
On
Real-Estate Proprietorship
We Khalifa Bin Zayed Al Nahyan, Ruler of Abu Dhabi
Pursuant to law (1) of 1974 concerning the re-organization of the government structure in the Emirate of Abu Dhabi and the amending laws thereof; and to
Law (2) of 1971 concerning the National Consultative Council and the amending laws thereof; and to
Law (2) of 1994 concerning lease of places and organization of relation between tenants and landlords and the amending laws thereof; and to
Law (3) of 2005 concerning the organization of property registration in the Emirate of Abu Dhabi; and to
Federal law (5) of 1985 concerning the issuance of the UAE Civil Code and the amending laws thereof; and to
Federal law (10) of 1992 concerning "proof of evidence" in civil and commercial dealings; and to
Federal law (11) of 1992 concerning the issuance of civil procedures; and to
Federal law (18) of 1993 concerning commercial transactions; and to
Emiri Decree (33) of 1968 on the organization of lease of lands for the purpose of building thereon; and upon
What have been presented to, and approved by the Executive Council;
Hereby issue the following law:
Article (1)
In implementation of the provisions of the law herein, the following wordings and phrases shall have their meanings as stated against each of them on the right hand side:
The Government
Government of Abu Dhabi
The Emirate
Emirate of Abu Dhabi
The Directorate
Directorate of Municipalities & Agriculture
Concerned Municipality
Abu Dhabi or Al-Ain Municipality or any other prospective municipality that might be incepted in the Emirate.
Property
Plots of land; buildings, enterprises and real-estates in particular.
Person
Any natural or legal person.
Investment zones
Areas that may be specified upon a decree by the Executive Council.
Genuine in-kind right
The real right of proprietorship.
Subordinate rights of proprietorship.
The rights of freehold; usufruct; residence and building on the lands of others (Musataha).
Subordinate in-kind (real) rights
The real rights of trust mortgage; possessory mortgage and the preferential rights.
Disposition
Any disposal impacting the rights standing on a property or incurring further rights on it, including but not limited to the selling, purchasing of properties; in addition to other transactions such as mortgage, usufruct and contracts on Transfer associated with a property disposition in accordance with the provisions of the Civil Code.
The right of usufruct
A real right that entitles one to the usage of an in-kind property belonging to others and utilizes it as long as it is keeping its original status-quo. Anyhow, the right of usufruct may be waived in favor of a third party.
The right of free-hold (Musataha)
An in-kind right that entitles one to build or plant on the land of others.
National individual
Any natural person holding the UAE nationality as per the provisions of enacted laws.
Article (2)
Each and any property granted by the government to any national individual prior to the date this law has been issued, shall become his own title that should be registered by virtue of the right of proprietorship according to which one may, within the law purview, have the rights of usufruct; exploitation (investment) and disposition as well.
The Executive Council shall, however issue rules to regulate property ownership transfer applicable to those properties previously allocated before the issuance of the law herein.
Article (3)
􀂃 The right of property ownership shall merely be confined to UAE national individuals or to legal entities totally owned to UAE nationals.
􀂃 However, the Arab Gulf Cooperation Council's national individuals may own a property (in the UAE) only if it is situated within specified investment zones, where they may introduce any disposition on it or bring about any genuine or subordinate real right.
􀂃 The previously mentioned executive rules and regulations shall specify the terms and conditions; as well as the tenure of (Musataha) contracts applicable to those properties situated outside the said investment zones.
Article (4)
Non-national individuals shall have the right of owning merely the title of a storey(s) at the said investment zones save the land on which they are built, and may also bring about to it/them any other rights.
Such individuals may have the right of usufruct or freehold, if a real-estate is situated within the so specified investment zones according to a relevant usufruct contract of up to 99-year tenure, or according to a freehold contract of up to 50-year tenure, whereas both may be renewable for identical periods upon an agreement to be signed by both parties.
Whoever has the right of usufruct or the right of freehold for a tenure of more than 10 years may, without a prior permission by owner, dispose of the property in anyway including mortgage, whereas the owner may not mortgage it unless upon agreement with the usufruct or the freehold right-holder. Yet, in both cases both parties may agree on the otherwise.
A decree to be issued by the Executive Council shall specify the internal executive rules regulating investment zone-related issues and type of offered services that may not, in all circumstances, contravene the provisions of the law herein.
Article (5)
Waiving his right of usufruct; right of freehold or any other real right may not release a right holder from obligations vis-à-vis the real owner unless it is otherwise agreed in the relevant contract or in the deed according to which the right was originated.
Article (6)
Neither property ownership nor any other real rights incurred thereby may be transferable neither between the two signatories nor in favor of other third parties, unless upon registration of the property in question.
Article (7)
A property; a right of usufruct or a right of freehold may not be registered in favor of inheritors, unless upon presenting a legitimate limitation of succession proving that they are the heirs of the ex-property owner; ex-usufruct right holder or ex-freeholder.
If it turns out that one from among several inheritors is not a UAE nationality holder, other inheritor(s) may jointly purchase his share at the market value. If this turns to be difficult, they may resort to the courts of law seeking an order to sell his share or the property altogether or the right of usufruct or that of freehold as per the case and per the claims of each share out of the sale amount to be specified within the purview of the provisions of the law herein.
Article (8)
Expropriation of an ownership; a right of usufruct; a right of freehold or any other real right may not be permissible save in case the property involved has been specified for a public interest. However it may be possible, if made in accordance with the deed that initially originated that right. In all cases, expropriation may not be possible but against a just indemnification and in accordance with the law provision.
Article (9)
Industrial lands and those leased by the Department shall be considered the sole and exclusive proprietorship of the government. The ownership of such lands may not be acquired or gained through adverse limitations,
whereas national individuals may apply to purchase such lands, but yet in accordance with the rules and controls set by the Executive Council.
Article (10)
National individuals may have the right of selling and buying residential; commercial; investment and agricultural lands; as well as special-purpose buildings allocated to them. They may further dispose of such types of property provided that they may not change the purpose for which it was initially specified.
Nevertheless, such individuals may also deal in popular housing units previously or currently allocated to them, yet they are prohibited from introducing any such dispositions unless being previously permitted by the Executive Council.
Article (11)
The Executive Rules shall determine the terms and conditions of establishing and managing the "Owners & Beneficiaries Union" in a real-estate of multi-storey buildings; apartments or in real-estate complexes comprising separate villa-units of not less than 10 in each complex. The Rules shall also deal with issues like ownership; maintenance; operation and financing of public elements or utilities in the said real-estates; in addition to the terms governing financial obligations incurred on owners; occupiers or beneficiaries of such multi-storey buildings; apartments or in real-estate complexes. They shall also provide for the powers and capacities of the owner or manager of such public elements and utilities.
Article (12)
The provisions of the UAE Civil Code shall be applicable to whatever, and whenever a relevant provision deemed absent in the law herein.
Article (13)
The Executive Council shall issue the executive rules and regulations required for the implementation of the provisions of this law.
Article (14) >􀂃 Emiri Decree (33) of 1968 concerning the lease of lands for the purpose of building thereon shall be null and void.
􀂃 The provisions of this law shall supersede any contravening or contradictory provision.
Article (15)
This law shall be promulgated in the official gazette and shall become into force as from the date of the said promulgation.
Khalifa Bin Zayed Al Nahyan
Issued by us in Abu Dhabi
On
The Tenth Day of August, 2005 Anno Domini
Corresponding to
The Fifth Day of Rajab, 1426 Anno Hijri