Musataha Agreement in Abu Dhabi, where we provide you with all the information you need to understand this type of land ownership. Whether you're an investor, property developer, or simply curious about the subject, this guide will cover the different features, conditions, and benefits of the Musataha Agreement in Abu Dhabi.
The Musataha contract is a specific type of land ownership that grants the holder the right to rent a piece of government-owned land in Abu Dhabi. With this contract, property developers and investors can utilize the land to build structures or engage in agricultural activities for a period of 10 to 50 years. It offers a unique opportunity for long-term and substantial real estate development projects.
The introduction of the Musataha concept across the UAE was aimed at supporting and encouraging investors to embark on real estate projects that are built on more stable and secure foundations. This agreement provides a favorable environment for real estate development, fostering economic growth and attracting foreign investment to the region.
A Musataha contract offers the holder several advantages, including greater rights, flexibility, and reassurance. It is particularly beneficial for those undertaking long-term and significant real estate development projects. Some of the key benefits of the Musataha Agreement include:
Foreign nationals interested in property ownership inAbu Dhabi should be aware that property ownership laws vary between emirates. While UAE nationals can hold Musataha contracts throughout the country, expats (and companies owned by them) can only hold these contracts in designated Investment Areas without the right to own land. The Musataha Agreement for expats is subject to a renewable term of up to 50 years.
In Abu Dhabi, most land contracts fall under the category of long lease contracts. However, there are significant differences between long lease contracts and Musataha agreements that are worth considering. Some of the key distinctions include:
Long Lease Contract:
If you currently hold a long lease contract and wish to convert it to a Musataha Agreement, it is possible to do so through a service provided by DARI. However, such a transfer would require renegotiating the terms of the contract, including the duration and rent payments. Both parties involved must consent to these changes.
When signing a Musataha contract, several conditions must be considered. As with any contract, the Abu Dhabi government, as the owner of the land, will need to identify the following:
It is advisable to seek legal advice to fully understand your rights and obligations when entering into a Musataha Agreement. Additionally, please note that Musataha contracts with the Abu Dhabi government are only available to Emirati nationals.
The cost of a Musataha agreement is calculated by multiplying the yearly rent (land area in square feet multiplied by the price per square foot) by the number of years specified in the agreement. The price per square foot varies depending on the location in Abu Dhabi:
The fee payable for the Musataha agreement in Abu Dhabi depends on the land's designated use:
It is important to note that the fee is always paid by the owner of the Musataha right (the Musateh).
DARI provides a convenient service called "Rent Payment" that allows Musataha contract holders to pay their rent, whether it is accumulated dues or advance payments. This service simplifies the rent payment process and ensures a seamless experience for Musataha holders.
We hope this inclusive guide has provided you with a comprehensive understanding of the Musataha Agreement in Abu Dhabi. It is a significant aspect of land ownership and real estate development in the region. By offering greater rights, flexibility, and investment opportunities, the Musataha Agreement encourages long-term and substantial projects that contribute to the growth and development of Abu Dhabi's real estate sector.