Investor Protection in GCC Real Estate: Developer Requirements

18 min 25 sec July 8, 2026 (Edited)

Written by

Arsalan Shaikh

Of Counsel

a.shaikh@tamimi.com View LinkedIn Profile

The GCC region has experienced remarkable growth in its real estate sector over the past two decades. From a relatively modest starting position, these markets have attracted some of the highest levels of real estate investment globally, driven by ambitious national visions, infrastructure megaprojects, and progressive legislative reform. As the sector matures, the regulatory frameworks governing developer requirements and investor protection have become a critical differentiator for jurisdictions competing for international capital. This article examines the legislative landscape across Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, and the UAE (Dubai and Abu Dhabi), assessing both the legal frameworks in place and their practical implementation.

(With respect to UAE we have only included for brevity mainland Dubai and Abu Dhabi laws).

Real Estate Regulator

Bahrain established a dedicated real estate regulatory authority (RERA) with broad powers over licensing, registration, enforcement, and dispute resolution.

Implementation: Fully operational with published regulations, active enforcement, and accessible public registers.

Qatar established AQARAT, a new dedicated authority whose mandate includes regulating and stimulating the real estate sector, preparing national plans, and issuing licences. Implementation: A relatively new body still building operational capacity. It has recently taken over responsibility for regulating escrow accounts from developers.

Kuwait has no standalone regulator. The Public Authority for Housing Welfare oversees residential city projects, while the Ministry of Justice handles real estate registration. Implementation: Regulatory oversight remains fragmented across multiple government bodies with no single-window regulator for the broader market.

Oman’s Ministry of Housing and Urban Planning assumes comprehensive regulatory functions under the 2025 real estate development law, replacing a previously fragmented structure across multiple older laws and regulations.

Implementation: The new framework under the new law is in its initial phase. The law enters force 180 days after publication and implementing regulations are pending. However, the MOHUP has already begun to implement various aspects of the new law including registration of home owners association and community management companies through its dedicated on-line portals.

KSA is regulated by the Real Estate General Authority (REGA), with a mandate covering licensing, registration, oversight, and sector development.

Implementation: Progressively strengthened through multiple amendments and actively implementing a nationwide registration programme.

Dubai is regulated by the Dubai Land Department (DLD) and its regulatory arm, the Real Estate Regulatory Agency (RERA). DLD handles registration while RERA manages licensing, escrow supervision, and community management.

Implementation: Well-established and operationally mature with decades of market experience.

Abu Dhabi is regulated by the Department of Municipalities and Transport, responsible for licensing, escrow supervision, the Real Estate Development Register, and Owners Committee formation.

Implementation: An active and well-resourced regulator with comprehensive published regulations.

Escrow Accounts

Bahrain has a comprehensive escrow framework featuring a 20% bank guarantee, an escrow account manager register, automatic freezing of payments in stalled projects, and detailed provisions on deposits and withdrawals. The Central Bank is directly involved in regulating escrow activities by financial institutions.

Implementation: One of the most detailed and effectively implemented escrow regimes in the GCC.

Qatar requires each project to have its own escrow account, with withdrawals restricted until 20% of construction is completed and 10% of total project value retained as security for defects. The Qatar Central Bank is empowered to issue instructions on account management. Implementation: The legal framework exists but detailed implementing regulations from the Authority and QCB are still being developed. We have recently seen a stronger emphasis in implementing escrow from Aqarat and banks.

Kuwait provides for escrow accounts for residential city projects, with purchaser payments deposited in a designated account managed under Authority supervision.

Implementation: Limited to government-supervised housing projects and does not extend to the broader private real estate development market.

Oman mandates escrow accounts for each off-plan project, with separate accounts per phase. The developer must deposit a prescribed percentage of total project cost before the licence is issued, and Ministry approval is needed for opening or closing an account.

Implementation: The previous escrow system covered only integrated tourism complexes; the 2025 law extends coverage to sale of all off-plan real estate development projects.

KSA mandates separate escrow accounts per project. Disbursement requires co-signatures from developer, consulting firm, and chartered accountant. Non-construction costs are capped at 20% of sold unit values and a 5% retention is maintained post-completion for defect remediation. The 2024 Implementing Regulations provide granular operational requirements. Implementation: A comprehensive and recent framework that is beginning to be actively enforced.

Dubai requires developers to open escrow accounts for off-plan projects, with funds used exclusively for construction. Despite the governing law being over 17 years old, no implementing regulations have been published.

Implementation: Enforced in practice and important to investor confidence. Despite the absence of published implementing regulations, the escrow account system is uniformly enforced and implemented.

Abu Dhabi requires a “guarantee account” per project, with no disbursement until 20% of construction is completed (although newer Authority Decisions allow for certain exceptions with strict requirements – Administrative Resolution No. (24) of 2025: Mechanism and Controls of Disbursement from the Project Guarantee Account Prior to Completion of 20% of the Project). Funds are protected from developer creditors. A supplemental resolution provides a comprehensive framework covering escrow agent approval, construction milestones, cancellation procedures, and unclaimed funds.

Implementation: Regarded as among the most transparent and detailed escrow regimes in the GCC.

Developer Registration and Project Registration

Bahrain maintains a detailed licensing and registration system requiring disclosure of convictions, insolvencies, and financial history. A project registration process requires 15 deliverables with approval or rejection within 45 days.

Implementation: Transparent, publicly accessible, and effectively enforced.

Qatar requires mandatory licensing before conducting real estate development, with prescribed timeframes of 30 days for approval and 60 days for appeal. A Register of Real Estate Developers has been established.

Implementation: The legal framework is sound although there will be some issues regarding transition for enforcement and implementation of the registration requirements from the Ministry to Aqarat.

Kuwait has no general developer registration system for the private market. Companies are established by the Authority for designated projects, with qualification and bidding overseen centrally.

Implementation: No comprehensive developer registration system exists for the broader market.

Oman establishes mandatory licensing classified into categories by ministerial decision. The Ministry maintains a public register of developers and a separate register of projects. Each project requires a separate licence and a Ministry-approved development plan. Implementation: A significant strengthening over the previous regime and now extensively enforced.

KSA requires registration in the Registry of Developers, assessed on a detailed points-based scoring system covering finances, technical capacity, and experience. Applications must be decided within 30 days. A public database of licensed projects is maintained. Implementation: Detailed and transparent with prescribed scoring criteria, defined timelines, and publicly accessible registers.

Dubai requires developer licensing and project registration. Projects must be approved by competent authorities before marketing.

Implementation: The most established and uniformly implemented developer and project registration system in the region.

Abu Dhabi requires all developers to be registered in the Real Estate Development Register before commencing development. Projects are notated on the Real Estate Register and marketing permission must be issued within 30 days.

Implementation: A clear framework that is effectively administered with published requirements.

Interim Registration of Purchaser Interests

Bahrain provides for registration of off-plan sales through the Special Register of Joint Real Properties and a separate Off-Plan Sale Register. Unregistered rights do not have effect against third parties.

Implementation: Operational and provides meaningful protection to off-plan purchasers.

Qatar maintains an Interim Real Estate Register for subdivided units and legal transactions pending final registration. A 2024 law further enhances the framework with digital registration capabilities.

Implementation: This is still not being fully enforced, but there has been noticeable progress since Aqarat took over this process.

Kuwait has established an Off-Plan Sale Register for recording project licences and unit sales contracts in specific government projects.

Implementation: No general interim registration mechanism exists for private market off-plan purchases.

Oman establishes a Preliminary Real Estate Register in which off-plan unit disposals must be recorded. No disposal is recognised unless recorded. Transfer to the permanent register upon completion is at no charge to buyers.

Implementation: the new legal framework formalizes and strengthens the preliminary register concept with mandatory recording requirements. Full implementation will be achieved once the necessary administrative systems required pursuant to the new Real Estate Development law have been established.

KSA provides for a register of off-plan dispositions linked to the main Real Estate Register. A notation prohibits disposal of the project land until development is completed. Upon completion, data transfers and REGA issues title deeds.

Implementation: Well-legislated and integrated with REGA’s broader registration programme, though nationwide rollout remains ongoing.

Dubai establishes the Interim Real Estate Register in which all off-plan sale contracts must be recorded. Unrecorded dispositions are void. Upon project completion, DLD transfers units to purchasers’ names on the Real Estate Register.

Implementation: Well-established and effectively enforced over many years.

Abu Dhabi establishes an “Initial Real Estate Register” in which all off-plan dispositions must be entered. Dispositions are not binding unless registered. Upon completion, ownership transfers to purchasers’ names on the Real Estate Register.

Implementation: Well established and implemented as a matter of course for all sales.

Community Management

Bahrain RERA regulates service charges, requiring contributions to be fair, reasonable, and not exceeding actual costs. The developer manages initially but the General Assembly may appoint a licensed manager. The HOA’s role is binding. No statutory distinction exists between standard communities and hospitality assets.

Implementation: Comprehensive and actively enforced with clear regulatory oversight of service charges. Some of the requirements, especially in relation to top branded residences and hotel apartments, are not considered conducive to developers and brands that want to retain control over the common areas of the building in order to maintain brand standards. Presently such control and enforcement is with the Owners Association.

Qatar has no comprehensive community management legislation. We understand that a new community management law is expected in 2026.

Implementation: A significant gap in the legislative framework. This has meant that there remains an issue regarding the management of freehold buildings as the current law that requires Home Owners Associations to be established does not provide the framework to register HOAs as legal entities.

Kuwait has limited provisions for specific government-supervised projects only.

Implementation: No meaningful framework for the broader market.

Oman requires the developer to manage common parts for a minimum of two years post-completion, then responsibility transfers to an owners’ association supervised by the Ministry. Common parts cannot be disposed of.

Implementation: A significant legislative advancement replacing the previous regime; implementation is in early stages. Similar to Bahrain, owners’ association will have the ultimate authority with respect to the management and maintenance of jointly owned property. While this may be in theory attractive to some purchasers, developers and operators of branded residences may have misgivings as their ability to maintain and manage the building in accordance with their brand standards would be subject to the authority of the HOA.

KSA mandates owners associations for three or more owners, with independent legal personality and binding authority. The developer may appoint the manager if retaining at least 10% of units. Service charges are set by the general assembly rather than directly regulated by REGA. No statutory distinction exists for hospitality assets.

Implementation: A relatively new framework; owners associations are still being established across the Kingdom. There are potential problems and pitfalls for developers and operators of branded residences as they may see the authority of HOAs as counter-productive to their management of a project.

Dubai operates a distinctive three-category system: (i) Major Projects managed by the developer with an Owners Committee selected by RERA; (ii) Hotel Projects managed by a hotel management company where the Owners Committee is advisory only (iii) Other Projects managed by RERA-selected companies with an Owners Committee. This creates a clear statutory distinction between standard communities and hospitality assets. Service charges require RERA approval and audit certification.

Implementation: Well-developed with active RERA supervision of service charges and management companies. It has also proven very attractive to developers and operators of branded/hospitality residences as they have the necessary flexibility and authority to manage such properties without the intervention of HOAs.

Abu Dhabi empowers the Department to approve specialised management companies, from which the developer must select and appoint within 30 days of delivering the first unit, with appointment agreements capped at three years without Department approval. The Owner’s Committee is advisory (proposing companies, reviewing budgets, and monitoring performance) but the Department and developer retain significant authority. Service charges require prior Department approval, and any unapproved fees are expressly declared illegal and unenforceable, with payers granted a statutory right of recovery. The developer bears responsibility for service changes on unsold units and annual fees must be payable in instalments rather than as single annual payment. Unpaid service fees constitute a lien on the unit that survives transfer of ownership. The framework also imposes comprehensive insurance obligations on management companies covering common areas and liability, detailed off-plan disclosure requirements (with developer liability for materially inaccurate information for two years from transfer), mandatory reserve fund requirements with Department controlled disbursement, and a prescribed enforcement procedure for outstanding service charges. No specific hospitality distinction comparable to Dubai’s three-tier system exists. Further information hereon may be read in our article – Administrative Resolution No. (25) of 2025: concerning the ‘Regulation of Ownership and Controls of Use and Management of Real Estate, Parts and Common Facilities in the Emirate of Abu Dhabi’

Implementation: A robust framework recently strengthened by 2025 amendments enhancing settlement procedures and charge regulation.

Failed Project Protection

Bahrain has detailed stalled-project regulations featuring a Settlement Committee, expert investigations, amicable resolution mechanisms, appointment of new developers, and exclusion of projects from developer bankruptcy estates. Escrow funds may not be attached in favour of the developer’s creditors.

Implementation: This is a very well developed stalled-project framework, with active committee mechanisms and a track-record of implementation.

Qatar provides for licence revocation where a developer fails to commence within six months and establishes a Dispute Resolution Committee. Under 2023 amendments, the owner must appoint another developer within three months of revocation.

Implementation: Basic mechanisms exist but lack the detailed resolution framework seen in Bahrain. Also the requisite judicial frameworks and decision-making committees and bodies have not kept pace with what is required under the relevant legislation. This area is currently being reviewed by Aqarat with a view to a more settled structure.

Kuwait provides that the Authority shall take legal measures to ensure continued completion of hindered projects. Bank and insurance guarantees are imposed on companies in proportion to project costs.

Implementation: Built into the government-supervised structure but has not yet been tested in practice.

Oman requires the project consultant to report to the Ministry within 30 days if a project falters. The Ministry shall find a solution or refer to court. Project land ownership cannot transfer after the off-plan licence is issued without Ministry approval. Criminal penalties apply for unlicensed development.

Implementation: Clearer mechanisms than previous legislation but the framework is new and untested.

KSA provides significant protections. Delayed delivery entitles purchasers to predetermined compensation. REGA may ensure completion or liquidate the project and return funds. The Implementing Regulations establish a Committee for Delayed and Stalled Projects that can appoint alternative developers and transfer escrow funds. Escrow funds are protected from developer creditors.

Implementation: A comprehensive legislative framework with robust enforcement mechanisms.

Dubai established a Special Judicial Committee for uncompleted and cancelled projects. The Interim Registration Law provides graduated remedies based on completion percentage. Cancelled projects require full refund under the Escrow Law.

Implementation: Protections exist in law and practice, but the Committee’s proceedings would benefit from published criteria and greater transparency.

Abu Dhabi requires the account trustee to take measures to preserve depositors’ rights, including appointing another developer. If no solution is found within six months, remaining funds are distributed in statutory priority: account expenses, then financiers and purchasers pro rata, then contractors, and lastly the developer. You can read more about this statutory priority in our article – Administrative Resolution No. (165) of 2025: Percentages, Procedures, and Periods of Refund of amounts to buyers in units to be written off and resold

Implementation: One of the most detailed frameworks in the GCC with clear statutory priority for distribution.

Foreign Ownership of Property

Bahrain permits non-Bahraini ownership of built real estate in designated areas. GCC nationals are generally treated as Bahraini nationals for ownership purposes.

Implementation: One of the most open GCC jurisdictions for foreign real estate ownership.

Qatar permits non-Qatari ownership in designated areas and usufruct of up to 99 years in other areas determined by Cabinet decision.

Implementation: Progressively liberalised with clear designated areas.

Kuwait does not permit non-Kuwaiti nationals to own freehold real estate. Non-Kuwaitis may only lease, with limited exceptions for GCC nationals and diplomatic missions. Implementation: The most restrictive jurisdiction in the region.

Oman permits non-Omani ownership in integrated tourism complexes. The 2025 law preserves these rights and the Ministry may designate further areas for non-Omani ownership.

Implementation: Established and functional but limited to ITCs. This will now extend to developments being established by the MOHUP under their Future Cities Programme which include Sultan Haitham City and Greater Muscat.

KSA has enacted a new law replacing the previous 2000 regime. Non-Saudis may own within designated zones. Listed companies and investment funds may own across the Kingdom including Makkah and Madinah. A fee not exceeding 5% applies to non-Saudi disposals. Premium Residency and GCC reciprocal rights are preserved.

Implementation: A significant liberalisation signalling a clear policy direction; implementing regulations are pending.

Dubai limits freehold to UAE and GCC nationals. Non-nationals may acquire freehold or usufruct (up to 99 years) in designated areas covering Palm Jumeirah, Dubai Marina, Emirates Hills, and others, progressively expanded through subsequent government decisions.

Implementation: Well-established with an expanding list of designated areas.

Abu Dhabi restricts freehold to nationals and equivalent entities. Non-nationals may own all principal and accessory real rights in designated investment areas. Non-nationals may also own apartments and floors (without land), acquire musataha up to 50 years (renewable), and usufruct up to 99 years within investment zones. GCC nationals may hold any real right in investment areas.

Implementation: Well-established and actively promoted across designated investment areas.

Comparative Summary Table: Legislation Governing GCC Real Estate