Musataha and Usufruct in Abu Dhabi: What You Actually Own (2026)

What is the difference between freehold, musataha and usufruct?

All three are registered real estate rights in Abu Dhabi, but they give you very different things:

The practical difference is the end date. A freehold owner keeps the property indefinitely. A musataha or usufruct holder has a valuable right that runs down over time, and what happens at expiry depends on the contract. Our glossary defines the related terms.

Where in Abu Dhabi will you come across musataha and usufruct?

Before Law No. 13 of 2019, foreign buyers in Abu Dhabi could hold only long leases, musataha and usufruct. The 2019 law opened freehold to foreigners inside the investment zones, and outside those zones foreigners can still hold these long-term rights but not freehold. See our guides to buying as a foreigner and the freehold areas. Inside investment zones foreigners can own land outright; see buying land in Abu Dhabi.

Even inside an investment zone, some plots and older projects are held as musataha or usufruct rather than freehold, and many commercial, education and hospitality developments use musataha (Al Tamimi). Tenure is recorded plot by plot, so check the title deed or DARI record of the specific unit rather than relying on the district.

How long does a musataha or usufruct last?

As long as the registered contract says. Until 2026, practitioners described usufruct as capped at 99 years and musataha at 50 years, renewable once in Abu Dhabi (Chambers Real Estate 2024 and 2025).

The new UAE Civil Transactions Law, Federal Decree-Law No. 25 of 2025, came into force on 1 June 2026. DLA Piper, writing in Chambers Real Estate 2026, reports that it no longer prescribes statutory maximum terms for usufruct or musataha, and that the effective duration will depend on registration practice and emirate-level rules. We have not found an ADREC or DARI notice setting new Abu Dhabi limits, so check the permitted term with ADREC/DARI before you agree one.

For a buyer, the remaining term matters more than the original one. A right with 15 years left is a very different asset from one with 45 years left, even in the same building.

Can you sell or mortgage a musataha or usufruct right?

Generally yes, for long rights. Under Law No. 3 of 2015, the holder of a usufruct or musataha for a term of more than 10 years may register a mortgage over it (Al Tamimi), and our foreign buyer guide notes that such a holder can sell or mortgage the right without the owner’s permission.

In practice, fewer banks lend against these rights than against freehold, and those that do look closely at the remaining term. The pool of resale buyers is also smaller. Ask your bank before you commit, using the guidance in our mortgage guide.

What changed for musataha under the 2026 Civil Transactions Law?

Three points matter to holders and buyers:

1. Registration is now a condition of validity. A musataha must be created by contract and registered with the relevant authority; Pinsent Masons notes that an unregistered musataha will be invalid.

2. Older unregistered rights are uncertain. Al Tamimi (July 2026) describes the treatment of pre-existing unregistered rights as contested and urges holders to register.

3. Non-payment can end the right. Al Tamimi reports that the termination trigger for unpaid consideration is now six months under Article 1260, unless the parties agree a longer period.

If you hold, or are buying, a musataha that was never registered, take legal advice and regularise it before you pay.

How much does it cost to register a musataha or usufruct?

Registration is calculated differently from a freehold sale. Our buying costs guide explains that it is 4% of the annual consideration multiplied by the term, and Bayut describes it as 4% of the value of the right.

Confirm the exact calculation with DARI for your contract, since the basis can differ where the right is bought from an existing holder rather than granted by the landowner.

How should you value a musataha or usufruct against freehold?

Compare the remaining term, any annual payment to the landowner, renewal rights, what happens to the buildings at expiry and whether banks will lend. A shorter right should be cheaper and should earn a higher yield to compensate for the value it loses each year. If those discounts are not there, freehold in a nearby investment zone is usually the safer choice. Always read the title deed to confirm the tenure you are buying.

*General information, not legal advice. The 2026 Civil Transactions Law is new; confirm how it applies to a specific right with ADREC/DARI or a UAE lawyer.*