Investor Protection in GCC Real Estate: Developer Requirements

The GCC region has experienced remarkable growth in its real estate sector over the past two decades. From a relatively modest starting position, these markets have attracted some of the highest levels of real estate investment globally, driven by ambitious national visions, infrastructure megaprojects, and progressive legislative reform. As the sector has matured, the regulatory frameworks governing developer requirements and investor protection have become a critical differentiator for jurisdictions competing for international capital. 

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The GCC region has experienced remarkable growth in its real estate sector over the past two decades. From a relatively modest starting position, these markets have attracted some of the highest levels of real estate investment globally, driven by ambitious national visions, infrastructure megaprojects, and progressive legislative reform. As the sector has matured, the regulatory frameworks governing developer requirements and investor protection have become a critical differentiator for jurisdictions competing for international capital. This article examines the legislative landscape across Bahrain, Qatar, Kuwait, Oman, Saudi Arabia, and the UAE, assessing the legal frameworks in place and their practical implementation. A comparative table on the legislation governing real estate in each jurisdiction is provided below. With respect to the UAE, for brevity, we have only included mainland Dubai and Abu Dhabi, real estate regulators. Bahrain has a dedicated real estate regulatory authority, RARE, with broad powers over licensing, registration, enforcement, and dispute resolution. It is fully operational with published regulations, active enforcement, and accessible public registers. Qatar established its real estate regulatory authority in 2023. Its mandate includes regulating and stimulating the real estate sector, preparing national plans, and issuing licenses. As a relatively new body, it is still building operational capacity. It recently took over responsibility for regulating developers' escrow accounts. Kuwait has no standalone regulator. The Public Authority for Housing Welfare, PHW, oversees residential city projects, while the Ministry of Justice handles real estate registration. Regulatory oversight remains fragmented across multiple government bodies with no single window regulator for the broader market. Oman's Ministry of Housing and Urban Planning, Mohab, assumed comprehensive regulatory functions under the 2025 Real Estate Development Law, which came into effect on date. The law replaced a previously fragmented structure across multiple older laws and regulations and introduced a new framework, which is currently in its initial phase. Although implementing regulations are pending, Moop has already begun to implement various aspects of the new law, including registration of homeowners, associations, and of community management companies through its dedicated online portals. The KSA is regulated by the Real Estate General Authority, Riga, with a mandate comprising licensing, registration, oversight, and sector development. Riga has been progressively strengthened through multiple amendments and active implementation of a nationwide real estate registration program. Dubai is regulated by the Dubai Land Department and its regulatory arm, the Real Estate Regulatory Agency, RERA, the DLD handles registration, while RERA manages licensing, escrow supervision, and community management. The agencies are well established and operationally mature with decades of market experience. Abu Dhabi is regulated by the Department of Municipalities and Transport, DMT, which is responsible for licensing, escrow supervision, the real estate development register, and the formation of owners' committees. It is an active and well-resourced regulator with comprehensive published regulations. Escrow Accounts. Bahrain has a comprehensive escrow framework featuring a 20% bank guarantee, an escrow account manager register, automatic freezing of payments installed projects, and detailed provisions on deposits and withdrawals. The central bank is directly involved in regulating escrow activities by financial institutions. Bahrain has one of the most detailed and effectively implemented escrow regimes in the GCC. Qatar requires each project to have its own escrow account, with withdrawals restricted until 20% of construction is completed, and 10% of total project value retained as security for defects. The Qatar Central Bank is empowered to issue instructions on account management. While the legal framework for escrow accounts exists, detailed implementing regulations from Accroit and the QCB are still being developed. We have recently seen a stronger emphasis by Accrit and banks in implementing escrow. Kuwait provides for escrow accounts for residential city projects, with purchaser payments deposited in a designated account managed under PHW supervision. Escrow accounts are limited to government supervised housing projects and do not extend to the broader private real estate development market. Oman mandates escrow accounts for each off-plan project with separate accounts per phase. The developer must deposit a prescribed percentage of the total project cost before the license is issued, and Mohop approval is needed for opening or closing an account. The previous escrow system covered only integrated tourism complexes. The 2025 law extends coverage to the sale of all-off-plan real estate development projects. The KSA mandates separate escrow accounts per project. Disbursement requires co-signatures from the developer, consulting firm, and chartered accountant. Non-construction costs are capped at 20% of sold unit values, and a 5% retention is maintained post-completion for defect remediation. The 2024 implementing regulations provide granular operational requirements. The KSA has a comprehensive and recently updated framework that is beginning to be actively enforced. Dubai requires developers to open escrow accounts for off-plan projects with funds used exclusively for construction. Although the governing law is over 17 years old, no implementing regulations have been published. The escrow account system is uniformly enforced and implemented. Abu Dhabi requires a guarantee account per project with no disbursement until 20% of construction is completed. However, newer authority decisions allow for certain exceptions with strict requirements. See Administrative Resolution No. 24 of 2025. Funds are protected from developer creditors. A supplemental resolution provides a comprehensive framework covering escrow agent approval, construction milestones, cancellation procedures, and unclaimed funds. Abu Dhabi is regarded as having among the most transparent and detailed escrow regimes in the GCC. Developer and Project Registration. Bahrain maintains a detailed licensing and registration system requiring disclosure of convictions, insolvencies, and financial history. A project registration process requires 15 deliverables with approval or rejection within 45 days. The system is transparent, publicly accessible, and effectively enforced. Qatar requires mandatory licensing before conducting real estate development with prescribed timeframes of 30 days for approval and 60 days for appeal. A register of real estate developers has been established. Although the legal framework is sound, there will be some issues regarding transition from the ministry to Accrit for enforcement and implementation of the registration requirements. Kuwait has no general developer registration system for the private market. Companies are established by PAHW for designated projects with qualification and bidding overseen centrally. No comprehensive developer registration system exists for the broader market. Oman establishes mandatory licensing, classified into categories by ministerial decision. Moop maintains a public register of developers and a separate register of projects. Each project requires a separate license and a Mohop-approved development plan. The registration system is significantly stronger than the previous regime and is extensively enforced. The KSA requires registration in the registry of developers, assessed on a detailed points-based scoring system covering finances, technical capacity, and experience. Applications must be decided within 30 days. A public database of licensed projects is maintained. The registration system is detailed and transparent, with prescribed scoring criteria, defined timelines, and publicly accessible registers. Dubai requires developer licensing and project registration. Projects must be approved by competent authorities before marketing. Dubai has the most established and uniformly implemented developer and project registration system in the region. Abu Dhabi requires all developers to be registered in the real estate development register before commencing development. Projects are notated on the real estate register and marketing permission must be issued within 30 days. Abu Dhabi has a clear framework that is effectively administered with published requirements. Interim registration of purchaser interests. Bahrain provides for the registration of off-plan sales through the Special Register of Joint Real Properties and a separate off-plan sale register. Unregistered rights do not have effect against third parties. The registration system is operational and provides meaningful protection to off-plan purchasers. Qatar maintains an interim real estate register for subdivided units and legal transactions pending final registration. A 2024 law further enhances the framework with digital registration capabilities. This is still not being fully enforced, but there has been noticeable progress since Accrit took over this process. Kuwait establishes an off-plan sale register for recording project licenses and unit sales contracts in specific government projects. No general interim registration mechanism exists for private market off-plan purchases. Oman has established a preliminary real estate register in which off-plan unit disposals must be recorded. No disposal is recognized unless recorded. Transfer to the permanent register upon completion is at no charge to buyers. The new legal framework formalizes and strengthens the preliminary register concept with mandatory recording requirements. Full implementation will be achieved once the necessary administrative systems required under the new real estate development law have been established. The KSA provides for a register of off-planned dispositions linked to the main real estate register. A notation prohibits disposal of the project land until development is completed. Upon completion, data transfers and Riga issues title deeds. The register is well legislated and integrated within Riga's broader registration program, though nationwide rollout remains ongoing. Dubai has established an interim real estate register in which all off-plan sale contracts must be recorded. Unrecorded dispositions are void. Upon project completion, the DLD transfers units to purchasers' names on the real estate register. The interim register is well established and has been effectively enforced over many years. Abu Dhabi has established an initial real estate register in which all off-plan dispositions must be recorded. Dispositions are not binding unless registered. Upon completion, ownership transfers to purchases' names on the real estate register. The registration system is well established and implemented as a matter of course for all sales. Community management. Bahrain Rara regulates service charges, requiring contributions to be fair, reasonable, and not exceeding actual costs. The developer manages the community initially, but the General Assembly may appoint a licensed manager. The Homeowners Association's HOAs role is binding. No statutory distinction exists between standard communities and hospitality assets. Bahrain's system is comprehensive and actively enforced, with clear regulatory oversight as service charges. Some of the requirements, especially in relation to top-branded residences and hotel apartments, are not considered conducive to developers and brands that want to retain control over the common areas of the building in order to maintain brand standards. Presently, such control and enforcement is with the HOS. Qatar has no comprehensive community management legislation. We understand that a new community management law is expected in 2026. At present, there is a significant gap in the legislative framework. This has meant that there remains an issue regarding the management of freehold buildings, as the current law that requires HO as to be established does not provide the framework to register HO as legal entities. Kuwait has limited provisions for specific government supervised projects only. It has no meaningful framework for the broader market. Oman requires the developer to manage common parts for a minimum of two years post-complion and to then transfer responsibility to an HOA supervised by Mohawk. Common parts cannot be disposed of. Oman has made a significant legislative advancement in replacing the previous regime, but implementation is in the early stages. Similar to Bahrain, HOAs will have the ultimate authority with respect to the management and maintenance of jointly owned property. While this may be in theory be attractive to some purchasers, developers and operators of branded residences may have misgivings, as their ability to maintain and manage the building in accordance with their brand standards would be subject to the HOA's authority. The KSA mandates the establishment of HO as for properties with three or more owners, giving them independent legal personality and binding authority. The developer may appoint the manager if it retains at least 10% of units. Service charges are set by the General Assembly rather than directly regulated by Riga. No statutory distinction exists for hospitality assets. This is a relatively new framework in the HO as are still being established across the kingdom. There are potential problems and pitfalls for developers and operators of branded residences, as they may see the authority of HO as counterproductive to their management of a project. Dubai operates a distinctive three-category system. I major projects managed by the developer with an owner's committee selected by RARE. 2. Hotel projects managed by a hotel management company, where the owner's committee is advisory only. And 3. Other projects managed by rare selected companies with an owner's committee. This creates a clear statutory distinction between standard communities and hospitality assets. Service charges require rare approval and audit certification. Dubai's system is well developed with active rare supervision of service charges and management companies. It has also proven very attractive to developers and operators of branded/slash hospitality residences, as they have the necessary flexibility and authority to manage such properties without the intervention of HOAs. Abu Dhabi empowers the DMT to approve specialized management companies from which the developer must select and appoint one within 30 days of delivering the first unit, with appointment agreements capped at three years without DMT approval. The owner's committee is advisory, proposing companies, reviewing budgets, and monitoring performance. But the DMT and developer retain significant authority. Service charges require prior DMT approval, and any unapproved fees are expressly declared illegal and unenforceable, with payers granted a statutory right of recovery. The developer bears responsibility for service changes on unsold units, and annual fees must be payable in instalments rather than as a single annual payment. Unpaid service fees constitute a lien on the unit that survives transfer of ownership. Abu Dhabi's framework also imposes comprehensive insurance obligations on management companies, covering common areas and liability, detailed off-plan disclosure requirements, with developer liability for materially inaccurate information for two years from transfer, mandatory reserve fund requirements with DMT controlled disbursement, and a prescribed enforcement procedure for outstanding service charges. No specific hospitality distinction comparable to Dubai's three-tier system exists. For further information, see Administrative Resolution No. 25 of 2025 concerning the regulation of ownership and controls of use and management of real estate, parts and common facilities in the Emirate of Abu Dhabi. Overall, Abu Dhabi has a robust framework that was recently strengthened by amendments in 2025 enhancing settlement procedures and charge regulation, failed project protection. Bahrain has detailed stalled project regulations featuring a settlement committee, expert investigations, amicable resolution mechanisms, appointment of new developers, and exclusion of projects from developer bankruptcy estates. Escrew funds may not be attached in favor of the developer's creditors. The nation has a very well-developed stalled project framework with active committee mechanisms and a track record of implementation. Qatar provides for license revocation where a developer fails to commence within six months and establishes a dispute resolution committee. Under 2023 amendments, the owner must appoint another developer within three months of revocation. Basic mechanisms exist, but Qatar lacks the detailed resolution framework seen in Bahrain. In addition, the requisite judicial frameworks and decision-making committees and bodies have not kept pace with what is required under the relevant legislation. This area is currently being reviewed by Accurate with a view to a more settled structure. Kuwait provides that the PAHW shall take legal measures to ensure continued completion of hindered projects. Bank and insurance guarantees are imposed on companies in proportion to project costs. Failed project protection is built into the government's supervised structure, but has not yet been tested in practice. Oman requires the project consultant to report to Mohop within 30 days if a project falters. Moop shall find a solution or refer the case to court. Project land ownership cannot transfer after the off-plan license is issued without Mohop approval. Criminal penalties apply for unlicensed development. Oman has clearer mechanisms for failed project protection than it did under previous legislation, but the framework is new and untested. The KSA provides significant protections. Delayed delivery entitles purchasers to predetermined compensation. Riga may ensure completion on liquidate the project and return funds. The implementing regulations establish a committee for delayed installed projects that can appoint alternative developers and transfer escrow funds. Escro funds are protected from developer creditors. The KSA has a comprehensive legislative framework with robust enforcement mechanisms. Dubai established a special judicial committee for uncompleted and cancelled projects. The interim registration law provides graduated remedies based on completion percentage. Cancelled projects require a full refund under the escrow law. While protections exist in law and practice, the committee's proceedings would benefit from published criteria and greater transparency. Abu Dhabi requires the account trustee to take measures to preserve depositors' rights, including appointing another developer. If no solution is found within six months, remaining funds are distributed in statutory priority, account expenses, then financiers and purchasers pro rata, then contractors, and lastly the developer. For more information, see Administrative Resolution No. 165 of 2025. Percentages, procedures, and periods of refund of amounts to buyers and units to be written of and resold. Abu Dhabi has one of the most detailed frameworks in the GCC with clear statuto priority for distribution. Foreign property ownership. Bahrain permits non-Bahraini ownership of built real estate in designated areas. GCC nationals are generally treated as Bahraini nationals for ownership purposes. Bahrain is one of the most open GCC jurisdictions for foreign real estate ownership. Qatar permits non-Katari ownership in designated areas and userfroct of up to 99 years in other areas determined by cabinet decision. Foreign property ownership is being progressively liberalized with clear designated areas. Kuwait does not permit non-Kwaiti nationals to own freehold real estate. Non-Kwaitis may only lease, with limited exceptions for GCC nationals and diplomatic missions. It is the most restrictive jurisdiction in the region. Oman permits non-Amone ownership in integrated tourism complexes. The 2025 law preserves these rights, and Mohop may designate further areas for non-Amone ownership. Foreign property ownership is established and functional, but limited to integrated tourism complexes, ITCs. This will now extend to developments being established by Mohop under its future cities program, including Sultan Haytham City and Greater Muscat. The KSA enacted a new law on date, replacing the previous 2000 regime. Non-Saudis may own real estate within designated zones. Listed companies and investment funds may own properties across the kingdom, including Makkah and Medina. A fee not exceeding 5% applies to non-Sadi disposals. Premium residency and GCC reciprocal rights are preserved. This is a significant liberalization, signalling a clear policy direction. Implementing regulations are pending. Dubai limits freehold ownership to UAE and GCC nationals. Non-nationals may acquire frohold or userfruct in designated areas covering Panjumera, Dubai Marina, Emirates Hills, and others, progressively expanded through subsequent government decisions. Foreign property ownership is well established with an expanding list of designated areas. Abu Dhabi restricts freehold ownership to nationals and equivalent entities. Non-nationals may own all principal and accessory real estate rights in designated investment areas. Non-nationals may also own apartments and floors without land, acquire Musatoho up to 50 years, renewable, and use a fruct up to 99 years within investment zones. GCC nationals may hold any real right in investment areas. The foreign property ownership system is well established and actively promoted across designated investment areas.