Abu Dhabi’s Department of Municipalities and Transport (DMT) has issued a package of regulatory decisions aimed at strengthening governance, transparency, and investor protection in the emirate’s real estate sector. The measures have been introduced to implement Law No. (3) of 2015, as amended by Law No. (2) of 2025, and are intended to reinforce the legal framework governing property development and ownership in Abu Dhabi.
The decisions focus on key areas including escrow account controls, jointly owned properties, owners’ committees, and compensation procedures in off-plan sales. According to the DMT, the regulatory package is designed to align the emirate’s real estate framework with international best practices while strengthening market confidence and legal certainty.
Stricter Escrow Account Controls
One of the principal measures introduces tighter controls over withdrawals from real estate project escrow accounts. Under the new rules, developers are restricted from withdrawing investors’ or purchasers’ funds before the project reaches at least 20 per cent completion.
This measure is intended to protect buyers’ funds and ensure that money collected for off-plan developments is used strictly in accordance with actual construction progress and approved project costs. The rule strengthens financial safeguards and aims to reduce risks associated with premature use of escrow funds.
Regulation of Jointly Owned Properties
The DMT has also introduced new rules governing jointly owned properties, including the management of shared facilities and common areas in residential and mixed-use developments.
The framework clarifies the responsibilities of developers, owners, and management companies in relation to the maintenance and operation of common property. This includes legal responsibility for shared infrastructure, service management, and sustainability of jointly owned assets.
Governance of Owners’ Committees
Further measures standardise the bylaws and procedures governing owners’ committees across Abu Dhabi.
The decisions establish clearer operational rules for committee formation, functions, and participation rights of owners. This is expected to strengthen governance within residential communities and improve regulatory oversight of shared property management.
Compensation and Refund Procedures
The package also introduces formal procedures for compensation and refunds in relation to off-plan property sales.
The new rules define compensation percentages payable in cases of contractual breaches and set out refund mechanisms where units are cancelled and subsequently resold. These provisions are aimed at ensuring fair treatment of both purchasers and developers while providing a clearer legal framework for dispute resolution.
Legal Significance
From a legal and regulatory perspective, the measures represent a significant step in strengthening Abu Dhabi’s real estate compliance framework.
The decisions are expected to enhance investor protection, improve developer accountability, and reinforce legal certainty in real estate transactions, particularly in the off-plan market. They also support Abu Dhabi’s wider objective of maintaining a transparent and well-regulated property sector.
