The Abu Dhabi real estate sector has entered a new era of regulatory oversight with the issue, on 28 February 2026, of Administrative Resolution No. (25) of 2025, concerning ‘Regulation of Ownership and Controls of Use and Management of Real Estate, Parts and Common Facilities in the Emirate of Abu Dhabi’, (the “Resolution”), which implements and provides operational detail to the existing legal framework regarding jointly owned property.
This marks a positive step toward greater transparency, accountability and protection for all stakeholders in the jointly owned real estate market, with relevance for developers, management companies and individual unit owners. By introducing more detail around governance, service charge regulation, mandatory disclosure, financial controls and developer liability, the Resolution seeks to tighten the property sector and align Abu Dhabi’s regulatory landscape with international best practices.
Key Changes from the Previous Regulatory Framework
The Resolution provides the operational and procedural detail required to make that framework work in practice. Some notable considerations include:
First, the Resolution gives detailed operational content to the owners’ committee framework. It defines and regulates the management systems (building management system, layer management system and complex management system) that govern the relationship between unit owners, management companies and developers. It prescribes the required contents of each management system, the process for ADREC approval or refusal (including the grounds on which ADREC may refuse a building management system), grievance and appeal timelines, and rules for resolving conflicts between different management systems. The Resolution also prescribes what constitutes common parts under both a layer scheme and a complex plan and sets out an owners’ threshold of 95% of total contribution shares (or a court decision in specified circumstances) as the requirement for terminating or cancelling a stratified or complex plan.
Second, the Resolution provides operational mechanics to how the management of common parts is conducted. Developers must appoint a specialised management company from a list of ADREC-approved companies within 30 days of delivering the first unit to its owner. Appointment agreements are capped at three years without ADREC approval. Additionally, ADREC may require companies seeking accreditation to provide bank guarantees or professional insurance to cover potential damage to common parts arising from their negligence or default.
Third, the Resolution gives enforcement detail regarding service charge approval. ADREC pre-approval is mandatory for all service charges and expressly declares any unapproved fees to be illegal and unenforceable. The Resolution also prohibits management companies and developers from imposing any fees or charges of any kind beyond those approved by ADREC and grants payers a statutory right to recover unapproved fees. The developer will be responsible for service charges relating to unsold units and for units where the developer has contractually assumed that obligation. Annual service fees must be payable in monthly or quarterly instalments and cannot be demanded as a single annual payment. Unpaid service fees constitute a lien on the real estate unit that survives transfer of ownership. Similarly, complex fees charged by master developers for shared infrastructure and facilities must be ADREC-approved.
Fourth, the Resolution introduces detailed disclosure obligations for off-plan sales that go beyond the previous framework. The Resolution prescribes a comprehensive list of items that must be disclosed, including building descriptions, sustainability measures, proposed common facilities, draft plans, materials and finishes tables, a two-year budget, estimated service fees, and estimated delivery dates. Failure to comply gives the buyer a right to terminate and the developer bears liability for materially inaccurate or incomplete information for two years from transfer.
Finally, the Resolution introduces a number of new operational and financial controls, including: mandatory electronic management and accounting systems for management companies; six-monthly reporting obligations to ADREC; detailed rules governing supply agreements (including a two-year maximum term without ADREC approval, competitive pricing requirements, and a prohibition on private profits); and a requirement that developers may not collect maintenance amounts from buyers more than three months in advance of the time they are needed.
Implications for Stakeholders
Stakeholders should carefully assess their existing arrangements and ensure full compliance with the new requirements. The Resolution’s emphasis on ADREC oversight, financial transparency and consumer protection signals a clear regulatory intent to foster a mature, well governed and investor friendly real estate market.
Further instructions and guidance from ADREC are expected to follow. In the meantime, market participants would be well advised to engage early with legal advisors to navigate the changes and capitalise on the opportunities that a more structured regulatory environment presents.
Please get in touch with Al Tamimi for further advice.
Key Contact
Laura Hecht, Senior Associate, l.hecht@tamimi.com
Kirsty de Sousa, Senior Knowledge Lawyer, K.Sousa@tamimi.com