UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva, Sean Cope and Marta Almeida, DLA Piper LLP
• musataha interest; • leasehold interest; and • granted land. Absolute Ownership (Freehold)
Although the new Civil Code no longer prescribes statutory maximum terms for usufruct or musataha rights, replacing the former limits of 99 and 50 years respectively, the effective duration of such rights will continue to depend on registration practice and any emirate‑level restrictions imposed by the relevant authorities. Leasehold Interests Generally, leasehold interests in the UAE are treated as personal rights between parties and not as real rights. An exception to this is leases of 25 years or more in Abu Dhabi and leases of ten years or more in Dubai, which are each considered as (and can be registered as) real rights. Granted Land Land may also be “granted” by the rulers of each Emirate to Emirati citizens or companies owned by Emiratis. The grant of such land can be revoked by the ruler at any time and is subject to obligations to develop such land and to restrictions on its use and disposal. 2.2 Laws Applicable to Transfer of Title The following federal laws are relevant: • the Civil Code; and • Federal Law No (50) of 2022 on commercial trans - actions, as amended (the “Commercial Code”). Each Emirate has its own laws and regulations gov - erning the transfer of title. 2.3 Effecting Lawful and Proper Transfer of Title Registration of Transfers All transfers of land in Abu Dhabi and Dubai must be registered. In Dubai, this may be done via the Dubai Land Depart - ment (DLD) portal or in person at one of the trustee offices of the DLD, while in Abu Dhabi it is done at the Department of Municipalities and Transport (DMT). The DIFC and ADGM have their own system of land registration and maintain their own registers. Certain other free zones maintain their own register of real
In Abu Dhabi, absolute ownership of real estate out - side designated investment areas is restricted to: • UAE nationals and UAE-incorporated companies wholly owned by them; • UAE-listed public joint stock companies in which non-UAE national shareholding does not exceed 49%; and • any person or entity specifically authorised to hold real estate by decision of the Crown Prince or Executive Council. Non‑UAE nationals (natural or legal persons) may acquire absolute ownership of real estate only in areas designated for foreign ownership – ie, the designated “investment areas” as determined by the Abu Dhabi Executive Council. In Dubai, nationals of the Gulf Cooperation Council (GCC), UAE-incorporated companies wholly owned by them and UAE-listed and public joint stock com - panies may have absolute ownership of real estate. All other nationalities are only permitted to own real estate in areas designated for foreign ownership. Usufruct and Musataha Interests A usufruct interest is a right in rem in favour of the grantee to use and exploit the property of another, provided the property remains in its original condition. A musataha interest is a type of usufruct that confers upon the grantee the right to build upon the land of another. In Abu Dhabi, both usufruct and musataha rights can be held by UAE nationals and UAE-incorporated com - panies wholly owned by them (without restriction) and by non-UAE nationals in designated investment areas only. In Dubai, both usufructs and musatahas can be held by GCC nationals and UAE-incorporated companies wholly owned by them, but by non-GCC nationals in designated areas only.
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