Dubai, UAE — March 2026 — Real estate developers in Abu Dhabi can now access escrow account funds before reaching 20 percent project completion, provided they adhere to strict new controls introduced by the Department of Municipalities and Transport.
According to the Emirates News Agency, this change is part of a broader package of administrative decisions implementing Law No. (3) of 2015, as amended by Law No. (2) of 2025, which regulates the emirate’s real estate sector.
Director-General of the Abu Dhabi Real Estate Centre, Rashed Al Omaira, said, “These decisions enhance the efficiency of sector regulation and reinforce the principles of transparency and governance, supporting investor confidence and strengthening Abu Dhabi’s position as a leading real estate destination.”
He added: “They establish a clear executive framework ensuring balanced contractual relationships, strengthening the protection of all parties’ rights, and supporting the speed and efficiency of procedures applied across the market.”
Under Decision No. (24) of 2025, withdrawals from escrow accounts prior to the previous completion threshold are permitted only when developers submit bank guarantees and approved cost estimates.
The mechanism is designed to safeguard purchasers’ funds while preventing unregulated use of deposited monies, offering developers greater flexibility without compromising investor protection.
In parallel, Decision No. (25) of 2025 establishes a comprehensive regulatory framework for jointly owned properties and common facilities, clearly defining the roles and responsibilities of owners, developers, and property management companies.
The framework strengthens the supervisory role of the ADREC to ensure long-term asset quality and operational efficiency.
Decision No. (26) of 2025 introduces a unified bylaw for Owners’ Committees, standardizing their formation, competencies, and operating procedures across the emirate. The rules align with international best practices to improve residential community management and enhance owner participation in project sustainability.
Additionally, Decision No. (165) of 2025 sets transparent compensation ratios and refund procedures for cases where off-plan sales are cancelled and units resold. The regulation balances fairness between developers and purchasers based on project completion status, while establishing faster, more equitable dispute resolution mechanisms.
Together, the decisions form part of Abu Dhabi’s ongoing push to develop a flexible legislative environment that protects investor rights, supports developers, and ensures the market’s competitiveness regionally and globally.
