Investment zone (Abu Dhabi)

Abu Dhabi restricts property ownership by foreigners to designated investment zones. The framework comes from Abu Dhabi Law No. 19 of 2005. Originally it allowed non-nationals only limited interests there: ownership of apartments without the land, usufruct of up to 99 years and musataha of up to 50. An amendment in 2019 went further and allowed foreign individuals and companies to own freehold property within the zones, which is the basis on which overseas buyers purchase today.

The zones include the areas where almost all off-plan homes are marketed to foreigners: Yas Island, Saadiyat Island, Al Reem Island, Al Maryah Island, Al Raha Beach, Masdar City, Jubail Island and Al Hudayriyat Island, among others. Outside a zone, a foreign buyer cannot obtain freehold title.

The concept matches Dubai's designated freehold areas, but the surrounding system is Abu Dhabi's own. Sales are registered through ADREC and the DARI platform, the registration fee is 2% of the price against Dubai's 4%, and listings need a Madhmoun permit. Al Maryah and Al Reem islands also fall within the Abu Dhabi Global Market, a financial free zone with its own property regulations, so some procedures differ there.

Two checks for a buyer. Confirm that the specific project, not just the island, lies inside a zone and is registered. And confirm the tenure on the contract: some older stock in the zones is still held on usufruct or musataha terms. See buying property in Abu Dhabi.