Usufruct

A usufruct separates the use of a property from its ownership. The holder may live in it, let it and keep the rent, for the length of the term, but must hand it back in sound condition and may not alter its fundamental character. The underlying owner keeps the bare title.

UAE law recognises usufruct as a registrable property right. In Dubai, Law No. 7 of 2006 allows foreign nationals to acquire usufruct or leasehold rights of up to 99 years in designated areas, as an alternative to freehold. In Abu Dhabi the maximum term is also 99 years, and until 2019 a usufruct was one of the main ways a foreigner could hold property. The right is recorded at the land department, which issues a usufruct certificate, and it can be sold for the remaining term.

For practical purposes a long usufruct feels similar to a leasehold: you have a registered, transferable interest that runs down over time. The differences from musataha are that a usufruct concerns the use of an existing property, whereas musataha is a right to build, and that a usufruct can run for longer.

Most homes now sold to foreign buyers are freehold, so usufruct is uncommon in new projects. Where it is offered, value it as a wasting asset. Check the years remaining, whether banks will lend against it, whether it can be freely sold and inherited, and what, if anything, is payable to the owner during the term.