The enactment of Federal Decree-Law No. 25 of 2025 (the New Civil Code) introduces important refinements to the legal framework governing UAE land rights new civil code provisions. While many of the established doctrines (such as pre-emption, acquisitive prescription, easements and Musataha) have been preserved, the New Civil Code introduces changes that enhance clarity, strengthen registration requirements, and more accurately reflect realities of modern real estate development. These reforms are significant for real estate investors, developers, and co-owners engaged in joint ventures, long-term development projects, and complex land use arrangements.

Understanding UAE land rights new civil code changes is essential for anyone involved in property investment, development, or ownership in the Emirates as these provisions fundamentally alter registration requirements, termination periods, and the enforceability of land rights agreements.

This article examines the key changes affecting rights over land and considers their practical implications for market participants operating in the UAE real estate sector.

Pre-Emption Rights Under UAE Land Rights New Civil Code

The law of pre-emption, which is the right of a co-owner to acquire the share of a selling co-owner on the same terms as the purchaser, is preserved in the New Civil Code. The doctrine is a significant feature of co-ownership law in the UAE and has direct implications for joint ventures in real estate, co-developed projects, and jointly-held investment properties.

Entitled Parties:

The categories of persons entitled to pre-emption under the New Civil Code include the administrator of an endowment held in common, where the endower has granted that authority, and holders of reversionary interests in endowments over jointly-owned property (Article 1172). The exclusions from pre-emption under Article 1173 similarly mirror the Old Civil Code (Article 1282 Old Civil Code).

Procedural Requirements:

Procedural rules for pre-emption actions also remain substantially the same. An action for pre-emption must be filed within two months from the date the pre-emptor knows of the sale. No claim may be filed six months after the date of registration (Article 1190). The case must be filed against the purchaser within the jurisdiction where the property is located (Article 1191).

Furthermore, Article 1197 preserves the rule that the pre-emptor can nullify all of the purchaser’s dispositions, even if the purchaser has endowed the property or turned it into a place of worship.

Pre-emption continues to present a material risk in co-owned property transactions, and as such, purchasers should assess the likelihood of pre-emption claims before completing acquisitions.

Narrowing of Family-Based Exclusion: Critical Change for Property Transfers

A notable and practically important change concerns the family-based exclusion from pre-emption actions. Under the Old Civil Code (Article 1297 Old Civil Code), a pre-emption claim was barred where the sale occurred between in-laws up to the third degree. The UAE land rights new civil code (Article 1189) has narrowed this exclusion so that a pre-emption action will not be heard if the sale occurred between in-laws up to the second degree only.

Practical Impact:

This change potentially widens the instances in which a co-owner can bring a valid pre-emption claim against a purchaser who is an in-law, and will need to be carefully considered by families structuring property transfers involving co-owned real estate.

Strategic Considerations:

• Family businesses should review existing co-ownership structures
• Third-degree in-law transfers now subject to pre-emption risk
• Consider alternative holding structures (corporate entities) to avoid pre-emption exposure
• Document family relationships clearly in transaction records
• Obtain pre-emptors’ waivers where possible before completing transfers

Acquisitive Prescription

Though some changes have been made, the New Civil Code largely preserves the Acquisitive Prescription mechanism, which allows a person to acquire ownership of property by holding uninterrupted, open possession of it for a period of 15 years in the absence of a registered title (Article 1218).

Extended Protection Period:

However, the new law does broaden protections against acquisitive prescription. The Old Civil Code disallowed origin of mortmain or inheritance claims after 30 uninterrupted years of undisputed possession of real estate and prohibited acquiring State, public, or charitable Waqf properties through acquisitive prescription (Article 1319 Old Civil Code). The UAE land rights new civil code extends this protection to 33 years, broadens it to all endowments, and adds explicit anti-encroachment rules regarding restricted properties, allowing authorities to remove violations at the encroacher’s expense (Article 1220).

Implications for Landowners:

• Landowners have an additional 3 years of protection (33 vs. 30 years)
• All endowments (not just charitable Waqf) are protected
• Authorities can now remove encroachments at violator’s expense
• Property owners should monitor boundaries and take action against unauthorized occupation within 15 years
• Extended protection period provides greater security for endowment properties

The Right of Superficies (Musataha Right) Framework: Major UAE Land Rights New Civil Code Changes

The Musataha right is the real right to build or plant on land owned by another, and is an important tool in UAE real estate, especially for long-term development arrangements, build-operate-transfer projects, and more. The UAE land rights new civil code introduces several notable changes to the Musataha framework.

Mandatory Registration: Critical Compliance Requirement

The New Civil Code provides that the Musataha right shall be concluded by a contract executed between the property owner and the Musataha Holder (Superficiarius), specifying the rights and obligations of both parties, and registered with the competent authority. Critically, the UAE land rights new civil code introduces an express sanction which deems any unregistered disposition as void (Article 1255).

Material Tightening of Rules:

This represents a material tightening of rules, relative to the Old Civil Code, which required the deed to govern the rights and obligations of the parties but did not expressly provide for unregistered agreements to be considered void (Article 1354 Old Civil Code). The New Civil Code’s explicit voidness sanction helps to eliminate any ambiguity about the legal effect of unregistered agreements, whilst significantly increasing the importance of proper documentation and registration in development and land use structures.

Compliance Imperatives:

• All Musataha agreements MUST be registered or they are void
• Existing unregistered Musataha arrangements should be registered before June 1, 2026
• Registration is not merely evidential—it is constitutive of the right
• Parties cannot rely on unregistered agreements in court
• Developers must build registration timelines into project schedules

Assignment and Mortgaging: New Bilateral Consent Requirement

The Musataha right may be transferred by inheritance or bequest, and may be assigned or mortgaged by security mortgage, however this requires the consent of both parties and registration with the competent authority (Article 1256). The Old Civil Code permitted assignment and pledge of the Musataha right without expressly requiring bilateral consent for such dispositions (Article 1355).

Significant Change for Financing:

The introduction of a bilateral consent requirement for assignment and mortgage of Musataha rights is a meaningful change that gives land owners greater control over who ultimately holds the right to build on their land.

Practical Implications:

• Financiers must obtain landowner consent before taking security over Musataha rights
• Assignment to third parties requires both landowner and Musataha holder agreement
• Landowners can block unwanted transfers or mortgages
• Musataha agreements should include pre-approved assignment and mortgaging provisions
• Consent requirements must be factored into financing documentation and timelines

Obligations of the Musataha Holder

The new law has also explicitly codified the obligations of the Musataha holder. Article 1257 outlines key duties for the Musataha holder to safeguard the property owner’s interests throughout the term of the contract.

Codified Duties:

These include exploiting the land only for purposes specified in the contract, completion of stipulated buildings and installations within deadlines, and securing consents from the owner and relevant authorities before altering land use. Additionally, the holder must avoid any dispositions that would harm the owner or impair post-contract land exploitation.

The addition of this legislation will help safeguard the interests of landowners and real estate investors looking to grant Musataha rights.

Key Obligations:

1. Use only for specified purposes in the contract
2. Complete buildings/installations within deadlines specified
3. Obtain consents before altering land use
4. Avoid harmful dispositions that would damage owner’s interests
5. Preserve post-contract exploitation capability of the land

Duration: Removal of 50-Year Cap

The Old Civil Code imposed a 50-year maximum on Musataha rights. Either party was free to terminate where there was no fixed term and no formal notice was required (Article 1356 Old Civil Code).

The UAE land rights new civil code, however, removes this cap entirely, allowing parties to contractually set any duration. Whilst unspecified term terminations are still permitted, formal default notice with a minimum notice period of 6 months will now be mandatory (Article 1258).

Strategic Advantages:

This allows investors flexibility for long-term developments and aligns with modern real estate needs by reducing uncertainty in project planning and exits.

Practical Applications:

• Long-term infrastructure projects can exceed 50 years
• Aligns with international project finance standards (often 75-99 year terms)
• Major developments requiring extended amortization periods now feasible
• 6-month minimum notice period provides planning certainty
• Parties should specify clear termination provisions in contracts

Termination Period: Reduced Default Trigger

Under the Old Civil Code, the Musataha right terminated if the right holder failed to pay the agreed consideration for two years, unless otherwise agreed (Article 1358 Old Civil Code). The New Civil Code has reduced this non-payment termination trigger to six months, unless otherwise agreed by the parties (Article 1260).

Significant Risk for Musataha Holders:

This is a significant change for parties structuring Musataha-based financing or development arrangements. A Musataha Holder who fails to make payments for six months will now be at risk of termination as the default legal position. Parties should review their Musataha contracts and, where appropriate, negotiate longer cure periods.

Risk Mitigation Strategies:

• Negotiate express longer cure periods in Musataha agreements (e.g., 12-24 months)
• Implement payment monitoring and alert systems
• Establish escrow accounts for payment obligations
• Consider payment guarantees or letters of credit
• Document any payment difficulties and communicate with landowner promptly
• Existing Musataha holders should review contracts and seek amendments if needed

Ownership of Improvements Upon Termination

The UAE land rights new civil code also provides greater clarity on what happens to buildings, installations, and planting upon termination of the Musataha right. As a default rule, ownership of improvements made with the land owner’s consent devolves to the land owner upon expiry of the musataha contract, unless otherwise agreed (Article 1261).

Improvements Without Consent:

If the Musataha holder makes improvements without the land owner’s consent, the owner may request their removal (with compensation if warranted) or, if removal would harm the land, acquire ownership at the value of the improvements.

Critical Provision for Financiers:

Legal dispositions executed over buildings and installations during the Musataha term, such as mortgages on the building, are effective during the contract term but terminate automatically when the term expires, unless otherwise agreed. This provision is critical for financiers taking security over structures built under Musataha rights, and should be carefully considered in financing documentation.

Financing Documentation Requirements:

• Lenders must ensure Musataha agreements explicitly preserve mortgage rights post-termination
• Security documents should address what happens upon Musataha expiry
• Consider tripartite agreements between landowner, Musataha holder, and lender
• Structure financing to mature before Musataha term expiry, or
• Obtain landowner agreement to continuation of security interests post-termination
• Conduct legal due diligence on improvement consent status

Easement Rights Under UAE Land Rights New Civil Code

The easement provisions of the New Civil Code largely preserve the same framework established under the Old Civil Code, governing apparent easements (including rights of way, conduit, and drainage), their acquisition by disposition, inheritance, or prescription, and the obligations of owners of dominant and servient properties.

Easement Modifications: New Judicial Power

A provision of importance is introduced by the UAE land rights new civil code, which allows the court, after balancing the interests of both parties, to modify an easement in return for fair consideration, where the needs of the dominant property have increased in a way that would increase the burden on the servient property (Article 1268).

This judicial power to adjust easement obligations did not exist under the Old Civil Code and provides a mechanism for resolving disputes over the evolving use of easement rights in a developing property environment.

Practical Applications:

• Courts can now modify easements as property needs evolve
• Servient property owners have recourse if burden increases unreasonably
• Dominant property owners can seek expansion of easement scope
• Fair consideration required for modifications
• Reduces need for full easement termination and renegotiation

Expanded Right to Transfer Easement Location

The right to transfer the location of an easement is also significantly expanded upon in the New Civil Code. The owner of a servient property can now request the transfer of an easement to another location within the same property, to other property they own, or even to a third party’s property (with the third party’s consent), where the original easement location has become more burdensome or obstructs improvements. However the use of the easement in the new position must remain equally feasible for the dominant property owner (Article 1270).

Development Flexibility:

This provision modernizes the law and provides a practical remedy for servient property owners seeking to develop or improve their land.

Transfer Options:

1. Within same property to different location
2. To other property owned by servient owner
3. To third party property (with third party consent)

Requirements:

• Must remain equally feasible for dominant property owner
• Original location must have become more burdensome
• Must not obstruct reasonable improvements

Practical Compliance Checklist for UAE Land Rights New Civil Code

To ensure full compliance with UAE land rights new civil code effective June 1, 2026, property owners and investors should:

Before June 1, 2026:

• Register all existing Musataha agreements (or they become void)
• Review co-ownership structures for pre-emption exposure
• Audit existing easement arrangements for modification opportunities
• Assess family property transfer plans under narrower in-law exclusion
• Document all boundary lines and address potential encroachment issues
• Review payment schedules under Musataha agreements (6-month default trigger)

Musataha-Specific Actions:

• Ensure bilateral consent provisions for assignment and mortgaging
• Negotiate longer cure periods for payment defaults (extend beyond 6 months)
• Obtain landowner consent for existing mortgages over Musataha improvements
• Draft clear post-termination provisions for financed improvements
• Consider term extensions beyond 50 years where project economics warrant
• Specify 6-month+ notice periods for indefinite-term arrangements

Co-Ownership and Pre-Emption:

• Document all co-owner relationships and in-law degrees
• Obtain pre-emptors’ waivers before transfers where possible
• Consider corporate holding structures to avoid pre-emption
• Implement 2-month action timeline monitoring for pre-emption claims
• Register all transfers promptly (6-month bar applies from registration)

Easement Management:

• Review servient property development plans for easement relocation needs
• Assess dominant property expansion requirements for modification requests
• Document increased burdens on servient properties
• Identify alternative easement locations meeting “equally feasible” test
• Prepare fair consideration valuations for potential modifications

Acquisitive Prescription Protection:

• Monitor property boundaries for unauthorized occupation
• Take action against encroachments within 15-year prescription period
• Document all endowment properties for extended 33-year protection
• Implement regular property inspection protocols
• Consider boundary surveys and demarcation for high-value properties

Financing Documentation:

• Update security templates to address Musataha termination scenarios
• Require tripartite agreements for financed Musataha improvements
• Structure loan maturities within Musataha term or secure post-term rights
• Obtain express landowner consents for mortgages (bilateral requirement)
• Review existing financing for compliance with new registration requirements

Key Changes Summary: UAE Land Rights New Civil Code

Seven critical changes investors must understand:

1. Musataha Registration Mandatory: Unregistered Musataha agreements are void—registration is constitutive, not evidential
2. Bilateral Consent for Assignment/Mortgage: Both landowner and Musataha holder must consent to transfers and mortgages
3. No Duration Cap: 50-year maximum removed—parties can set any term
4. 6-Month Payment Default: Reduced from 2 years, significant risk for Musataha holders
5. Narrower Family Exclusion: Pre-emption now applies to third-degree in-law transfers (previously excluded)
6. Judicial Easement Modification: Courts can modify easements as property needs evolve
7. Extended Acquisitive Prescription Protection: Increased from 30 to 33 years for protected properties

Get Expert Real Estate and Land Law Advice from the Leading Law Firm in Sharjah

The UAE land rights new civil code preserves the core principles underpinning pre-emption, acquisitive prescription, Musataha, and easements, whilst also introducing greater structure, clarity, and judicial flexibility across these areas. For investors and developers, these changes underscore the importance of careful legal structuring and precise drafting and registration of agreements.

The mandatory registration requirement for Musataha rights, the reduced payment default trigger, and the bilateral consent requirement for mortgages represent material changes that directly impact development financing, project timelines, and investment structuring. Early compliance and strategic legal review are essential to avoid void agreements, unexpected terminations, and unenforceable security interests.

For tailored advice and strategic support on navigating UAE land rights new civil code provisions, structuring Musataha arrangements, managing co-ownership rights, and ensuring compliance with Federal Decree-Law No. 25 of 2025 effective June 1, 2026, consulting with an experienced law firm in UAE like Economic Law Partners (ELP) ensures your land rights and development structures are secure, enforceable, and aligned with the latest legal framework. Visit our law firm in Sharjah or contact ELP for expert legal support on all aspects of UAE real estate and property law.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Federal Decree-Law No. 25 of 2025 takes effect on June 1, 2026. Readers should consult qualified legal counsel specializing in UAE property law for advice specific to their land holdings, development projects, and investment structures.