Abu Dhabi Administrative Resolution No. (26) of 2025: Rules of Procedure for Owners' Committees

The Abu Dhabi Real Estate Centre (ADREC) issued Administrative Resolution No. (26) of 2025 on [date]. The Resolution adopts the Rules of Procedure governing the formation, composition, and operation of owners' committees across all jointly owned real-estate development projects in the Emirate of Abu Dhabi. 

Find all the episodes in this edition here, and don’t forget to subscribe!

Follow us on LinkedIn and Instagram for more insights and updates from Al Tamimi & Company. 

Transcript

SPEAKER_00 0:00

The Abu Dhabi Real Estate Center issued Administrative Resolution No. 26 of 2025. The resolution adopts the rules of procedure governing the formation, composition, and operation of owners' committees across all jointly owned real estate development projects in the Emirate of Abu Dhabi. The resolution establishes a comprehensive regulatory framework designed to empower unit owners with a structured, transparent, and democratic mechanism for the collective oversight of jointly owned properties while delineating the respective roles and responsibilities of owners, developers, and management companies in the governance of common property. Formatia An owners' committee must be formed once at least 30% of the total number of real estate units in a project are registered in the names of multiple owners in the land registry. The committee should comprise between five and nine members, including a chairman and vice chairman, selected by electronic voting from amongst owners residing in the common property. Developers are expressly prohibited from serving on the committee, even if they own unsold units. Membership requirements: Committee members must have full legal capacity, be unit owners residing in the joint property, be of good conduct, have paid all service and complex fees due, hold a valid UAE residence permit, and be approved by a DREC. Membership is terminated automatically upon the loss of any qualifying condition, with the next highest vote candidate replacing the outgoing member. Nomination and voting. The management company must announce the formation process and provide an electronic platform for candidacy applications and voting. The nomination period must be at least 30 days, closing at least 10 days before the scheduled vote. Advertising campaigns, gatherings, or meetings related to the nomination or voting process are strictly prohibited. Each unit owner has one vote, regardless of the number or size of units owned, and co-owners of a single unit share one vote. Voting must be conducted through secure electronic means, free from interference by the management company or developer. The results are counted electronically without human intervention. Accreditation and term. The management company must submit the voting results to Adrec for approval before announcing the winners. ADREC may accept or reject any elected member without stating its reasons. The committee's term of membership is two years, extendable by ADREC's Director General for up to one additional year. Members serve without monetary compensation. Chairman, Deputy Chairman, and Rapporteur functions. At its first meeting, the owners' committee must select its chairman, deputy chairman, and rapporteur from among its members. The chairman is responsible for presiding over and managing committee meetings, or the deputy chairman, in the chairman's absence, representing the committee in meetings with ADREC, the developer, or the management company, and ensuring that the committee and its members operate within the limits of their legally prescribed tasks and powers. The rapporteur is tasked with preparing agendas, meeting minutes, and committee reports, inviting members to periodic meetings, counting votes on proposed recommendations, and distributing meeting minutes to members. The rapporteur must also send copies of all approved meeting minutes and recommendations to the management company within two days of each meeting, tasks, and powers. The committee's role is advisory and supervisory rather than executive. It may propose management company candidates to the developer, review annual budgets, monitor management company performance, represent owners on complaints, and notify relevant parties of defects or emergency issues. The committee may also request the Department of Municipalities and Transport, DMT, to compel a change of management company based on justifiable grounds of negligence or poor service quality. The committee is expressly prohibited from directly or indirectly interfering in tasks not legally entrusted to it. Conduct and meetings. Committee members must act with integrity, avoid conflicts of interest, maintain confidentiality, and comply with the applicable management system. The committee must meet quarterly, with the option for emergency meetings with prior direct notification. Meetings may be held electronically. Note, ADREC retains the power to dissolve the committee, cancel or suspend membership, or replace the chairman or vice-chairman at any time without stating its reasons. Record keeping and supervision. The owners' committee is required to maintain copies of all meeting minutes, together with any official correspondence or letters between the chairman and ADREC, the developer or the management company, for the periods and in accordance with the rules determined by ADREC. The chairman must provide ADREC with copies of these records upon request or as otherwise directed. ADREC exercises broad supervisory authority over the formation and activities of owners' committees, including regulating their relationships with the developer and the management company and monitoring compliance with their legally assigned tasks. ADREC may dissolve a committee, revoke or suspend membership, or replace the chairman or deputy chairman at any time without stating its reasons. In such cases, the committee must be reformed or a replacement member must be elected within 60 days, in accordance with the voting procedures established under the resolution. Implications for stakeholders. For unit owners and investors, the resolution formalizes a democratic governance mechanism through which they can exercise collective oversight over the management and maintenance of their properties. For developers, the exclusion from committee membership signals a clear intent to separate development and ownership governance, while developers remain responsible for appointing management companies and bearing costs for unsold units. For management companies, the resolution introduces a structured regime of accountability to both ADREC and the owners' committee, with transparent electronic voting and budget review processes. Conclusion. In conclusion, Administrative Resolution No. 26 of 2025 represents a significant step in the maturation of Abu Dhabi's governance framework for jointly owned property. By mandating the formation of owners' committees through transparent electronic processes, imposing clear eligibility and conduct requirements on members, and vesting a DREC with broad supervisory and intervention powers, the resolution strikes a balance between owner empowerment and regulatory oversight. Stakeholders, including unit owners, developers, and management companies, should familiarize themselves with the provisions of the resolution and take the necessary steps to ensure compliance with its requirements. As the regulatory landscape continues to evolve, this resolution is expected to serve as a foundational instrument in promoting accountability and good governance in the management of jointly owned real estate developments across the Emirate.