There are exceptions to this rule. GCC nationals can own property in areas designated for foreign ownership (“Investment Areas”). Other foreign nationals may own apartments or floors in buildings (without the right of ownership of the land) in certain Investment Areas, together with the right to own usufruct rights of up to 99 years or Musataha rights of up to 50 years. This article considers the recent changes to the content and use of Musataha Agreements in Abu Dhabi.

Musataha Agreements

A Musataha Agreement creates a real property right (a right in rem) which entitles its holder to construct a building or to invest in, mortgage, lease, sell, or purchase a plot of land belonging to a third party for a period of up to 50 years, provided that such acts do not contravene any Executive Council resolutions. This right is renewable once by mutual consent of the parties for a further period of up to 50 years.