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Abu Dhabi Enhances Real Estate Sector Transparency and Governance

By Noura Lawyers · UAE Law Update · Abu Dhabi · 2 min read

The Department of Municipalities and Transport in Abu Dhabi has issued four regulatory decisions aimed at enhancing transparency and governance in the real estate sector. These decisions implement provisions of Law No. (3) of 2015, addressing escrow account controls, property management, owners' committee bylaws, and compensation in the event of a breach of off-plan sale agreements. This move strengthens Abu Dhabi's position as a leading global real estate investment destination by providing a flexible and sustainable legislative environment that supports developers and protects investors.

Update note

Who should read this

Real estate developers, investors, and property owners in Abu Dhabi should immediately review this.

Directly affected

developersinvestorsproperty ownersproperty management companies

Key facts

  • Four administrative decisions issued to implement Law No. (3) of 2015 in Abu Dhabi.
  • Decisions cover escrow account disbursement controls, jointly owned property management, owners' committee bylaws, and compensation for developer in case of purchaser breach.
  • Abu Dhabi strengthens its position as a leading global real estate investment destination.
  • The decisions establish a clear executive framework for the law, ensuring balanced contractual relationships and efficient procedures.

What this means for you

These regulatory decisions provide a comprehensive framework that clarifies the rights and obligations of all parties involved in real estate transactions in Abu Dhabi. They ensure the efficient use of escrow accounts, enhance the management of jointly owned properties, and define the roles of owners' committees. This development is crucial for developers, investors, and property owners, as it promotes a more transparent and regulated real estate market.

Directly affected: developers, investors, property owners, property management companies

Action items

  1. Review the new regulations to understand changes in escrow account management.
  2. Assess the impact of the new bylaws on the operation of owners' committees.
  3. Update internal policies to align with the new property management and compensation regulations.
  4. Consult legal counsel to ensure compliance with the new regulatory framework.

Litigation impact

The new regulations are likely to reduce disputes between developers and unit purchasers by providing clear compensation ratios and refund procedures. They may also influence pending or future litigation by setting out transparent procedures that safeguard the rights of all parties.

Source

ADREC — Abu Dhabi Real Estate Centre
https://adrec.gov.ae/en/news/press-release2-department
Original-source date: — · Captured: 2026-06-26T07:58Z

Verified against ADREC — Abu Dhabi Real Estate Centre ·
Show full English translation / verbatim source text
The Department of Municipalities and Transport (DMT) announced the issuance of a package of administrative decisions to implement Law No. (3) of 2015 (as amended by Law 2 of 2025) concerning the Regulation of the Real Estate Sector in Abu Dhabi. The decisions enhance the effective implementation of the law, further strengthening transparency and governance within the emirate’s real estate market. The decisions establish a more flexible and clearly defined legislative framework that aligns with international best practices. In addition, the decisions respond to the sector’s rapid growth ensuring the law is applied in accordance with well-defined regulatory requirements. The package comprises four administrative decisions addressing key stages across the development, regulation and management cycle of real estate development projects in the emirate.

This update is generated from a public regulator publication and reviewed under the firm's automated editorial quality gate. General information only — it does not constitute legal advice. For advice on a specific matter, please contact us. Last updated: 26 June 2026.

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Frequently asked questions

What does “Abu Dhabi Enhances Real Estate Sector Transparency and Governance” change?

The Department of Municipalities and Transport in Abu Dhabi has issued four regulatory decisions aimed at enhancing transparency and governance in the real estate sector. These decisions implement provisions of Law No. (3) of 2015, addressing escrow account controls, property management, owners' committee bylaws, and compensation in the event of a breach of off-plan sale agreements. This move strengthens Abu Dhabi's position as a leading global real estate investment destination by providing a flexible and sustainable legislative environment that supports developers and protects investors.

Who is affected by this update?

developers, investors, property owners, property management companies

What should affected businesses do now?

Review the new regulations to understand changes in escrow account management. Assess the impact of the new bylaws on the operation of owners' committees. Update internal policies to align with the new property management and compensation regulations. Consult legal counsel to ensure compliance with the new regulatory framework.

How can Noura Lawyers help?

Our partners advise on exactly this kind of regulatory change — brief us in three minutes via the contact page for a same business-day partner response.