Granted Land in Abu Dhabi

Based on recent discussions with the Abu Dhabi Municipality we are aware that certain directions have been made restricting dealings with granted land in Abu Dhabi.

Prohibition on disposal of granted commercial land

At present there is a prohibition on the sale, mortgaging or other disposal of granted commercial land in Abu Dhabi until further notice. The relevant Resolution setting out the prohibition is likely to be issued in the Official Gazette shortly.

Our understanding is that the prohibition does not apply to granted commercial land located within the Investment Zones of Abu Dhabi. We also understand that this prohibition is of a temporary nature pending an alternative regime, which will be implemented in due course.

Prohibition on disposal and leasing of granted residential land

A similar prohibition on disposal applies to granted residential land in Abu Dhabi. From 01 January 2018, UAE nationals are not permitted to sell, mortgage or lease granted residential land (including any building or villa thereon). The prohibition on leasing includes Tawtheeq leases and long-term leases.

We understand as an exception, disposal or lease of granted residential land (including any building or villa thereon) will be permitted if all of the following conditions are satisfied:

1. The villa/building construction has been completed and all licenses including building completion certificate and occupation licence have been issued;
2. The housing loan granted by the government to the applicant has been settled in full and a no objection certificate to release the mortgage over the residential land has been obtained; and
3. The applicant owns another property in Abu Dhabi suitable for the residence of his family.

If you have any questions, please do not hesitate to contact us.