If you are looking at a plot, a building or a project in Dubai that is sold “on musataha”, the first question is simple: who owns the land underneath? With musataha Dubai deals the answer is not you. You own, or have the right to build and use, what sits on someone else’s land for a limited time. That has always been true. What changed on 1 June 2026 is the federal law that sits behind the right.
Federal Decree-Law No. 25 of 2025, the new UAE Civil Transactions Law, came into force on that date and repealed Federal Law No. 5 of 1985, the old Civil Code. The text of the Decree-Law itself says so in Articles 2 and 3. Since then, law-firm and advisory websites have published very different answers to a basic question: what is the maximum term of a musataha? Some say the cap is gone. Others still quote 50 years. Others quote 99.
This guide separates what is confirmed in official or primary text from what is only reported by commentators, so you know what to check before you pay a deposit.
Published: 25 October 2026
One honest note first. This is a property guide, not legal advice. We could read the full text of the Decree-Law’s first three articles and the full text of Dubai Decree No. 23 of 2022 and Dubai Law No. 7 of 2006. We could not open the musataha articles of the new Civil Transactions Law itself (Articles 1254 onward), so those points are reported as law firms describe them and are labelled that way. Where sources conflict, we say so rather than pick one.
Musataha Dubai Explained: What Is a Musataha?
A musataha is a right in rem that lets the holder build or plant on land owned by someone else, for a fixed period, and own what they build for that period. The landowner keeps the land. At the end of the term the buildings normally go back to the owner unless the contract says otherwise.
Dubai’s own Decree No. 23 of 2022 defines it, for government commercial land, as “a real right granted by an Owner of Commercial Land to another person to entitle him to use that land”. Under the same Decree the holder owns the buildings and structures he constructs for the holding period, and that ownership is limited to the period and the purpose.
Do not confuse it with two neighbours:
- Freehold means you own the property and the land share outright. See our guide to freehold vs leasehold in Dubai.
- Usufruct or long lease means a right to use and occupy an existing property for a long period. Dubai Law No. 7 of 2006, Article 4, allows non-UAE nationals “usufruct or leasehold over Real Property for a period not exceeding ninety-nine (99) years” in areas determined by the Ruler. That Article does not mention musataha.
What Changed on 1 June 2026?
Four changes matter to a buyer: registration is now a condition of the right existing, assignment and mortgage need both parties’ consent, the default termination notice is shorter, and the statutory term cap is reported to have been removed. Here is how reliable each one is.
| Change reported | What commentators say | How well supported |
|---|---|---|
| Law in force | Decree-Law 25 of 2025 in force 1 June 2026; Law 5 of 1985 repealed | Confirmed in the Decree-Law’s own Articles 2 and 3 |
| Registration | Article 1255: musataha must be made by a registered contract; an unregistered disposition is “deemed void” | Reported by Al Tamimi, ELP Legal and others; we did not read the Article itself |
| Assign or mortgage | Article 1256: needs consent of both parties and registration | Reported by ELP Legal and a corporate-law advisory; not read in primary text |
| Non-payment termination | Article 1260: six months unpaid consideration (old Code: two years), unless agreed otherwise | Reported by Al Tamimi and ELP Legal |
| Open-ended musataha | Either party may end it on notice; sources say six months | Reported; article number is given as 1258 by some and not at all by Al Tamimi |
| End of term | Article 1261: buildings pass to the owner unless agreed otherwise | Reported by two advisory sites |
| Maximum term | Federal cap of 50 years reported removed | Disputed, see the next section |
The registration point is the one with real teeth. Al Tamimi’s July 2026 alert notes that for arrangements entered into on or after 1 June 2026, registration is mandatory. For older, unregistered arrangements the effect is contested: one view treats them as void, another as closer to voidable. The Code generally does not apply to transactions before its start date unless it says so (Article 4, as cited by Al Tamimi), and the alert says the Code has no specific transitional rule for existing musataha. So if you are buying into an older arrangement, ask to see the registration, not just the contract.
Musataha Dubai Term Limits: How Long Can It Run, and Why Sources Disagree
There is no single number every source agrees on for a musataha Dubai term. The honest answer is that it depends on which layer of law you are reading, and the most important number is the one written in the registered contract.
| Source | What it says about term | Type of source |
|---|---|---|
| Dubai Land Department service page | Musataha “a term not exceeding 50 years”; usufruct “not exceeding 99 years” | Official government page |
| Dubai Decree No. 23 of 2022, Article 6 | Government commercial land: no more than 35 years, extendable with the owner’s approval to 50 years in total | Official legislation (read in full) |
| Dubai Law No. 7 of 2006, Article 4 | Usufruct or leasehold for non-UAE nationals: no more than 99 years in Ruler-designated areas; musataha not mentioned | Official legislation (read) |
| DLA Piper in Chambers Real Estate 2026 | New Code “no longer prescribes statutory maximum terms for usufruct or musataha”; duration still depends on registration practice and emirate-level restrictions | International law firm |
| ELP Legal | Old Code cap of 50 years removed; parties can set any duration | Law firm |
| Advisory sites such as EGSH and UAE Expert Hub | Still quote 50 years for musataha and 99 for usufruct, citing the old Civil Code or emirate rules | Advisory and law-firm blogs, several written before or without reference to the new Code |
How do these fit together? A reasonable reading, which we label as our reading and not legal advice, is this:
- The old federal Civil Code capped musataha at 50 years. Commentators who have read the new Code say that federal cap no longer appears.
- Removing a federal cap does not remove Dubai’s own rules. Decree No. 23 of 2022 still limits musataha over government-owned commercial land to 35 years, extendable to 50. Law No. 7 of 2006 still limits usufruct or leasehold granted to non-UAE nationals to 99 years.
- The Dubai Land Department’s service page, when we read it for this guide, still states 50 years for musataha and 99 for usufruct. In practice the registrar is what turns a contract into a registered right.
- Many advisory pages still repeat the older numbers because they were written under the 1985 Code.
So a seller quoting “99 years” and another quoting “50 years” may both be repeating something real from a different layer. For a buyer the practical rule is the one our freehold vs leasehold guide already gives: confirm the exact term in the registered document. That guide’s wording on musataha terms (“historically up to 50 years”) was written before 1 June 2026 and should be read together with this update.
Who Can Hold a Musataha in Dubai?
Under Dubai Law No. 7 of 2006, the right to own real property in Dubai is restricted to UAE nationals, GCC nationals, companies wholly owned by them and public joint stock companies. Non-UAE nationals can be granted freehold, or usufruct or leasehold for up to 99 years, “in certain areas determined by the Ruler” and subject to the Ruler’s approval.
Whether a non-GCC individual can take a musataha specifically in those designated areas is where sources split. DLA Piper’s Dubai summary treats a musataha as a type of usufruct and so within the 99-year ceiling for non-GCC buyers in designated areas. An EGSH comparison table says “UAE/GCC nationals everywhere; foreigners in designated areas” and then, in its FAQ, quotes 99 years for foreigners even though it quotes a 50-year musataha cap elsewhere, and does not reconcile the two. We could not find a Dubai Land Department page that settles it. If you are a non-GCC buyer, ask the seller for the registered title and ask the registration trustee centre to confirm in writing that the right can be registered in your name.
Musataha Dubai Registration Cost: What the DLD Lists
The Dubai Land Department lists musataha registration at 1%. On the same service page, resale of a musataha is 1% of the musataha area value on undeveloped land, and 4% of the building value plus 1% of the musataha area on built-up land.
| Item | Fee on the DLD service page |
|---|---|
| Musataha registration | 1% |
| Resale of musataha, land only | 1% of the musataha area value |
| Resale of musataha, built-up land | 4% of the building value plus 1% of the musataha area |
| Certificate of title / title deed | AED 250 |
| Registration trustee service fee, value AED 500,000 or more | AED 4,000 plus VAT |
| Registration trustee service fee, value under AED 500,000 | AED 2,000 plus VAT |
| Usufruct or long lease, for comparison | 2% of rental value from the owner plus 2% from the lessee |
Two clarifications. First, the DLD page says “1%” without spelling out the base on that line, and secondary sources describe it as 1% of the contract value or consideration. Our own earlier guide listed it as “1% of annual rent”. Because the sources do not agree on the base, treat the base as something to confirm with the trustee centre before you budget. As pure arithmetic and not a quote: if a contract’s value were AED 1,000,000, 1% would be AED 10,000; if the base were a lower annual-rent figure, the fee would be proportionally lower.
Second, on who pays: Decree No. 23 of 2022, Article 8(5), makes the holder pay the registration fees for government commercial land. For other musataha, commentators say the person receiving the right pays unless agreed otherwise. Ask for the split in writing. For the wider list of costs on any Dubai purchase, see our buying costs guide.
Can You Mortgage or Sell a Musataha?
Yes, in principle, but with consent and registration. For federal law as reported after 1 June 2026, ELP Legal and a corporate-law advisory both say Article 1256 requires the consent of both parties and registration for an assignment or mortgage. Neither source says the holder can act alone.
One claim you may see online is that a holder with more than ten years left can sell or mortgage without the owner’s consent. Our research found that rule in Abu Dhabi’s Law No. 19 of 2005, Article 4, and in the Abu Dhabi standard musataha contract, not in Dubai law. Do not assume it applies to a Dubai musataha.
For musataha on Dubai government commercial land, Decree No. 23 of 2022 is explicit:
- Article 10: the holder may mortgage the right under Dubai’s mortgage law, but only with the prior written approvals of the owner and the DLD.
- Article 8(7): before the Completion Certificate is issued, the holder may not dispose of the right in any way except by mortgage.
- Article 11(b): the holder may still sell off-plan units before the Completion Certificate under Dubai’s interim register law and DLD rules.
- Article 15: selling, mortgaging or assigning shares in the company that holds the musataha also needs owner and DLD approval.
On what a lender will actually secure: EGSH reports that under Article 21 of Dubai’s mortgage law the holder may mortgage the buildings or plants for the duration, while the land cannot be mortgaged unless the contract allows. We did not open that law, so treat this as reported. The practical point stands: a bank is lending against a building with an end date, so expect it to ask how many years remain. See our mortgage guide for foreigners.
What Happens at the End of the Term?
The buildings go back to the landowner, unless the contract says otherwise. Decree No. 23 of 2022, Article 11(c), says so for government commercial land. Article 14(b) adds that legal dispositions over the buildings, such as unit sales and mortgages, remain valid during the holding period and cease on expiry unless the parties agree otherwise. For the new federal Code, two advisory sites report the same default in Article 1261.
Renewal is not automatic. Under Decree No. 23, Article 7, a holder who wants to renew must apply to the owner at least two years before expiry, unless the parties agree otherwise. That is why the remaining term matters more than the original term, as our freehold vs leasehold guide notes with its example of 40 years left on a 99-year right.
When Does a Home Buyer Meet Musataha?
Usually indirectly. You may never sign a musataha yourself. But if you buy an off-plan apartment or a unit in a project built on government-owned commercial land, the developer’s right to the land may itself be a musataha, and the building you are buying has a lifespan tied to that right.
Decree No. 23 of 2022 sets some of the rules that protect buyers in that situation. The holder must obtain the Completion Certificate within five years of registering the right (Article 8(4)). If the project is still unfinished after five years, a fine of 1% of the market value of the land applies for each year beyond that time frame (Article 14(c)), and the right lapses if the certificate is not obtained for three consecutive years after that limit (Article 12(a)(5)). Off-plan unit sales before completion are allowed under the interim register law (Article 11(b)). For how buyer money is protected before handover, see our escrow guide and off-plan delay rights guide.
Does a Musataha Count for a Golden Visa?
Almost certainly not, but check. The sources we found agree that the property route to a Golden Visa needs freehold property worth at least AED 2 million, and that leasehold does not qualify. None of them names musataha or usufruct explicitly, so the exclusion is inferred from the freehold-only rule rather than stated. Confirm with the Dubai Land Department and the immigration authority before relying on any long-term right for residency. Our Golden Visa guide covers the route in full.
Musataha Dubai Buyer’s Checklist: What to Ask Before You Pay
Before you pay for any musataha Dubai deal, ask for these and keep copies:
- The registered contract and proof of registration with the Dubai Land Department, not only a signed agreement. After 1 June 2026, registration is reported as a condition of the right.
- The start date, end date and remaining years written in the document. Do the subtraction yourself.
- The landowner’s identity, and whether it is a government entity, since Decree No. 23 then applies.
- Who may use the land and for what purpose. Holders must use the land only for the contracted purpose and need approval to change it.
- Consent terms for resale and mortgage, including whether the owner has already agreed in writing.
- What happens to the building at expiry and whether any renewal or compensation is agreed.
- Registration fee base and who pays, in writing.
- For off-plan units: the developer’s Completion Certificate status and escrow details. Our guide to verifying a Dubai listing walks through the DLD and RERA checks, and our documents checklist lists what to prepare.
A musataha in Dubai can be a legitimate and sometimes cheaper way to access land or a building. The risk is not that it exists but that buyers value it as if it were freehold. A building with 20 years left is a different asset from one with 45.
Frequently Asked Questions
What is musataha in Dubai?
It is a real right to build on and use another party’s land for a fixed term and to own what you build during that term. The landowner keeps the land, and buildings normally revert to the owner at the end unless the contract says otherwise.
What is the maximum term of a musataha in Dubai now?
Sources disagree. The Dubai Land Department service page states up to 50 years, Decree No. 23 of 2022 limits government commercial land to 35 years extendable to 50, and some law firms report that the federal cap was removed on 1 June 2026. Rely on the term written in the registered contract.
Must a musataha be registered?
Yes. Commentators report that Article 1255 of the new Civil Transactions Law makes an unregistered disposition void, and Dubai’s Decree No. 23 of 2022 makes unregistered dispositions over government commercial land void and of no legal effect.
How much does it cost to register a musataha in Dubai?
The Dubai Land Department lists musataha registration at 1%, plus AED 250 for the title deed and a registration trustee fee of AED 4,000 plus VAT for values of AED 500,000 or more, or AED 2,000 plus VAT below that. Confirm the base for the 1% before budgeting.
Is musataha the same as usufruct?
No. A usufruct is a right to use and occupy an existing property, with Dubai Law No. 7 of 2006 allowing up to 99 years for non-UAE nationals in designated areas. A musataha is a right to build, and some commentators describe it as a type of usufruct that includes the right to construct.
Can a foreigner hold a musataha in Dubai?
Dubai Law No. 7 of 2006 allows non-UAE nationals usufruct or leasehold of up to 99 years in areas determined by the Ruler. Whether that covers a musataha for a non-GCC individual is described differently by different sources, so get written confirmation from the registration trustee centre.
Can I mortgage a musataha?
Generally yes, with consent. The new federal Code is reported to require both parties’ consent and registration, and Decree No. 23 of 2022 requires the owner’s and the DLD’s prior written approval on government commercial land. EGSH reports that the mortgage covers the buildings rather than the land unless the contract allows.
Does the ten-year rule let me sell without the owner’s consent?
Not in Dubai, as far as we could verify. That rule appears in Abu Dhabi’s Law No. 19 of 2005, not in Dubai legislation we read.
What happens when a musataha expires?
Buildings pass to the landowner unless the contract says otherwise, and unit sales and mortgages over the buildings cease to be valid at expiry unless the parties agree otherwise. A holder who wants to renew should apply at least two years before expiry on government commercial land.
Will a musataha qualify me for a Golden Visa?
The sources we found say the property route needs freehold property of at least AED 2 million and that leasehold does not count. None names musataha explicitly, so confirm with the authorities.
Does the new law affect musataha agreements signed before 1 June 2026?
It is contested. The Code generally does not apply to transactions that preceded it, but Al Tamimi reports that opinion is divided on unregistered older musataha, between a “void” view and a “voidable” view. If you hold one, get legal advice and consider registering it.
Check the Right Before You Check the View
If a property is offered on musataha, usufruct or any long lease, the price should reflect the years left, not just the finish. Sanaya Real Estate helps buyers and investors in Dubai buy, sell, rent and manage property, with mortgage services and Golden Visa assistance, and can help you find out which ownership type a listing really carries before you commit. For legal interpretation of a specific contract, speak to a qualified Dubai property lawyer. To start a conversation, use our contact page or call +971 4 566 2368.
Message Sanaya on WhatsApp: +971 50 436 5316
Sources Used
- Federal Decree-Law No. 25 of 2025, Articles 1 to 3 (Lexis Middle East / Legal Table)
- Dubai Decree No. 23 of 2022 Regulating the Grant of Musataha Rights over Commercial Land (Dubai Legislation Portal, read in full)
- Dubai Law No. 7 of 2006 Concerning Real Property Registration, Article 4 (Dubai Legislation Portal)
- Dubai Land Department, Usufruct/Musataha right registration application service page
- Al Tamimi & Company alert on the Civil Transactions Law via Lexis Middle East and GCC BDI (July 2026)
- DLA Piper and Al Tamimi sections of Chambers Real Estate 2026, UAE
- ELP Legal, UAE land rights under the new Civil Code
- DY Legal Consultants, new UAE Civil Code and real estate
- EGSH, Musataha in Dubai (2026)
- Pinsent Masons, Dubai musataha decree
- Abu Dhabi Law No. 19 of 2005 and ADREC standard musataha contract
If you are buying or selling a mortgaged Dubai property, this guide to the liability letter, NOC and mortgage release steps before a buyer can transfer explains how the bank side of a sale works.
