Law No. (2) of 2007
Amending Certain Provisions of Law No. (19) of 2005
Regarding Real Estate Property
We, Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi,
- - Having reviewed Law No. (1) of 1974 on the Reorganization of the Governmental Apparatus in the Emirate of Abu Dhabi and its amendments,
- - And Law No. (2) of 1971 concerning the National Consultative Council and its amendments,
- - And Law No. (3) of 2005 Regulating Real Estate Registration in the Emirate of Abu Dhabi,
- - And Law No. (19) of 2005 on Real Estate Property,
- - And Law No. (20) of 2006 on Tenancy of Premises and the Regulation of the Lease Relationship between Landlords and Tenants in the Emirate of Abu Dhabi,
- - And Federal Law No. (5) of 1985 issuing the Civil Transactions Law of the United Arab Emirates and its amendments,
- - And Federal Law No. (10) of 1992 issuing the Law of Evidence in Civil and Commercial Transactions,
- - And Federal Law No. (11) of 1992 issuing the Civil Procedures Law and its amendments,
- - And Federal Law No. (18) of 1993 issuing the Commercial Transactions Law,
- - And based on the proposal submitted to the Executive Council and its approval.
We have issued the following law:
Article (1)
The definition of (Disposition) in Article (1) of the aforementioned Law No. (19) of 2005 shall be amended by deleting the phrase (in accordance with the provisions of the Civil Transactions Law), and the definition of (Citizen) in Article (1) of the aforementioned Real Estate Property Law shall be amended to the following definition: Citizens and those treated as such:
- Any natural person holding the nationality of the United Arab Emirates, in accordance with the provisions of the applicable laws, and companies and establishments fully owned by them.
- The Government of the United Arab Emirates, and the governments of the other Emirates.
- The Government and the authorities, bodies, entities, companies, establishments, funds, and councils fully owned by it.
Article (2)
The texts of Articles (3), (4), (6), (7), and (12) of the aforementioned Law No. (19) of 2005 shall be replaced with the following articles:
Article (3)
The right to own real estate is restricted to citizens and those treated as such, and to the persons, companies, and entities specified by a decision of the Executive Council.
- Citizens of the Gulf Cooperation Council countries and legal persons fully owned by them may, in accordance with the regulations set by the Executive Council, own real estate, provided that the property is located within investment zones, and they may conduct any disposition or arrange any original or ancillary real right on any of these properties.
- The Executive Regulations shall determine the terms, conditions, and durations of Musataha contracts for properties located outside investment zones.
Article (4)
- Non-citizens, whether natural or legal persons, have the right to own floors without the land in investment zones and may arrange all rights thereon. The Executive Regulations or decisions issued by the Executive Council shall determine the scope, conditions, and provisions of this ownership.
- They also have the right to usufruct and musataha over properties located within investment zones through a long-term usufruct contract of up to (99) years, or a long-term musataha contract of up to (50) years, renewable by agreement of the parties for a similar period.
- A decision by the Executive Council shall determine the internal regulations for investment zones and the method of providing services therein, in a manner that does not contravene the provisions of this law.
- Anyone with a usufruct or musataha right for a period exceeding ten years may, without the owner's permission, dispose of it, including mortgaging it. The property owner may not mortgage it except with the consent of the holder of the usufruct or musataha right. In both cases, the parties may agree otherwise.
- The Executive Regulations shall determine the terms, conditions, and durations of usufruct and musataha contracts for properties located inside and outside investment zones.
Article (6)
Ownership of real estate and the ancillary real rights attached to it, or rights derived from the right of ownership, shall not be transferred, whether between the contracting parties or with respect to third parties, except by registration. Registration in the registry specified in the aforementioned Law No. (3) of 2005 shall be binding and conclusive evidence of the ownership of the property, ancillary real rights or those derived from the right of ownership, and long-term lease rights.
Article (7)
The real estate or the right of usufruct or musataha shall be registered in the names of the heirs, after they provide a legal notification proving their inheritance from the owner of the property, the usufructuary, or the holder of the musataha right.
If it is found, with respect to properties registered in the names of natural persons or institutions located outside the investment zones, that one of the heirs is a non-citizen, any of the heirs, individually or jointly, may purchase his share at market value. If this is not possible, they may resort to the judiciary to obtain an order to sell his share or the entire property and collect the shares from the sale price.
The Executive Regulations shall determine the terms and conditions for registering the ownership of properties located within investment zones in the case of inheritance.
Article (12)
All dispositions concerning real estate in the Emirate, including the provisions and conditions of the musataha and usufruct contracts referred to in this Law, and the contracts concluded between the parties, shall be subject to the provisions of this Law, its Executive Regulations, and the decisions issued in implementation thereof.
The registration of transactions and dispositions shall be subject to the provisions of the aforementioned Law No. (3) of 2005 and the decisions implementing it.
Article (13)
Any provision that contradicts the provisions of this Law is hereby repealed.
Article (14)
This Law shall be published in the Official Gazette and shall come into force from the date of its issuance.
Khalifa bin Zayed Al Nahyan
Ruler of Abu Dhabi
Issued by us in Abu Dhabi:
On: February 6, 2007 AD
Corresponding to: 18 Muharram 1428 AH