Can Foreigners Buy Property in Abu Dhabi: Laws, Zones & Investment Insights

Jun 19, 2025

Can Foreigners Buy Property in Abu Dhabi: Laws, Zones & Investment Insights
4 minutes read
Jun 19, 2025

More global investors and expats are looking at Abu Dhabi now as their top option for a permanent residence. Because the economy is steady, Abu Dhabi has world-class infrastructure, and many people want to buy property, the question has arisen: Are foreigners allowed to buy property in Abu Dhabi?

Yes, foreigners are allowed, but there are certain conditions. This blog outlines the rules, different investment areas and advantages for foreigners who want to buy property in Abu Dhabi.

Foreign Ownership Laws in Abu Dhabi: The Basics

Before 2019, only long-term leases (lasting up to 99 years) were available for foreigners to lease property in Abu Dhabi. Law No. 13 of 2019 made it possible for foreigners to own freehold property in selected parts of the country for the first time.

Key Ownership Types for Foreigners:

Freehold Ownership:
  • Complete ownership of land and property
  • Can be found in specific investment areas
Usufruct (99-year lease):
  • Right to occupy the property for 99 years
  • No land ownership
Musataha (50-year development right):
  • Right to construct and occupy the property
  • Renewable and transferable

Designated Investment Zones for Foreigners

1. Al Reem Island

Al Reem Island is among the major business areas in Abu Dhabi, found on the northeastern edge of the city. With a beautiful skyline and advanced infrastructure, the island has quickly become a centre for luxury housing. The many high-rise apartments, scenic waterfront and tall commercial buildings attract those looking to live and those looking to invest in Al Reem. Schools, shops, hospitals and parks for recreation increase the family-friendliness of the area.

2. Yas Island

Because of the exciting party scene and the strong community, many people are interested in living or investing on Yas Island. Ferrari World, Yas Waterworld and Yas Marina Circuit attract a lot of visitors to Abu Dhabi. Comfortable three-bedroom apartments, townhouses and villas on Yas Island are built with easy access to the beach and leisure areas for property investors.

3. Saadiyat Island

Saadiyat Island is known as Abu Dhabi’s centre for luxury living and is home to many cultural attractions. The island’s notable structures are the Louvre Abu Dhabi, the planned Guggenheim Museum and the Zayed National Museum. Saadiyat features top-class properties, oceanfront homes and guarded communities for the wealthy and those living abroad.

4. Al Raha Beach

There are homes, offices and entertainment areas on Al Raha Beach, which is found between Yas Island and Abu Dhabi Island. The area stands out for its charming promenades, private beaches, marinas and lush green spots which suit people of all ages and careers. Thanks to its modern architecture and having good schools, unique shopping places and close healthcare facilities, Al Raha Beach is convenient and comfortable.

5. Masdar City

Abu Dhabi’s most advanced and sustainable investment area is known as Masdar City. As an eco-city, Masdar focuses on using clean technologies, renewable energy and choosing zero-carbon urban plans. It has environmentally friendly apartments, workspaces and labs, so it draws in startups, IT firms and investors who are conscious of the environment. Buyers desiring to help fulfil the UAE’s goal of sustainability should consider Masdar.

Benefits of Buying Property in Abu Dhabi as a Foreigner

  1. Residency Visa Eligibility: Certain property owners may obtain 2 to 10-year renewable residency visas in the UAE.
  2. High Rental Yields: Rental prices in Abu Dhabi are often attractive (around 5–7%), particularly in demand in parts of the city.
  3. Tax-Free Income: Property or capital gains taxes are not charged in the UAE.
  4. Robust Legal Framework: The property market is overseen by the Department of Municipalities and Transport (DMT) to protect buyers.
  5. Growing Infrastructure: Ongoing changes in healthcare, schools, and transport make it an attractive investment for the future.

Final Thoughts

The Abu Dhabi property market is now more accessible to people from other countries and expats. Great investment zones, a steady economy and a promising future all make it an ideal time to consider properties in Abu Dhabi.

Anyone interested in investing, relocating or seeking more property can find safety and chances to gain in Abu Dhabi.

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