Abu Dhabi government, in a landmark move, has declared that all foreigners will be entitled to own the freehold of land and properties which they purchase in investment zones. Previously, this was only permitted for UAE and GCC nationals, said a report.

In his capacity as the Ruler of Abu Dhabi, UAE President HH Sheikh Khalifa bin Zayed Al Nahyan, last month issued a law amending provisions of Law No 19 of 2005 concerning the real estate sector in Abu Dhabi, reported state news agency Wam.

The new law stipulates amendments to Articles 3 and 4 of the ‘Real Property Law’, it added. Under this new law, residential units within these zones will be registered under Abu Dhabi’s freehold law, with property ownership deeds issued to investors, according to a statement issued by the Government of Abu Dhabi.

Previously, foreign investors in Abu Dhabi property were generally limited to leasehold arrangements with 99-year leases.

Commending the announcement, Aldar Properties CEO Talal Al Dhiyebi says: “This is a game-changing announcement for Abu Dhabi, and we applaud yet another insightful policy decision by the government that allows expatriates to be able to buy freehold properties in investment zones.”

The latest changes, he states, not only boost the real estate market but will also have far-reaching impacts on the broader economy, and increase Abu Dhabi’s diversification to non-hydrocarbon industries.

“We are already reaping the rewards of the recent initiatives and seeing a positive shift in sentiment, evident by strong sales of over Dh2 billion ($544 million) achieved for our two latest plot developments, Alreeman and LEA, which demonstrates strength and resilience in the market,” he adds.

“This will not only further drive the maturity of Abu Dhabi’s real estate market, but will also increase transparency and provide clarity of title for property owners, increasing long-term investment, injecting more liquidity into the market and encouraging longer term residency,” he continues.

Earlier this year, Aldar launched its Alreeman project in Al Shamka, an investment zone located near Abu Dhabi Airport. The project was fully sold in a matter of days, generating Dh1.6 billion of sales. Last month, Aldar launched LEA on Yas Island, which has generated Dh400 million in sales to date.