The proposed regulations would apply to qualifying vacant commercial plots, with landowners given a six-month period to apply for a building permit before a fee could become applicable.
September 18, 2026 | Riya Malhotra | UAE | Developer | 2 Min Read
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Abu Dhabi Global Market’s Registration Authority has proposed new regulations that could impose an annual fee equal to 2% of the fair market value of qualifying undeveloped commercial plots within ADGM.
The proposal forms part of a new Undeveloped Commercial Land Regulations consultation aimed at encouraging faster development of commercial land and improving the utilisation of serviced plots across the jurisdiction.
Under the proposed framework, the regulations would apply to vacant commercial plots that are capable of development and supported by the required infrastructure.
Landowners would receive a six-month grace period to apply for a building permit before an undeveloped land fee could potentially apply.
Owners would also be required to provide evidence that construction has formally commenced and to demonstrate continued progress within prescribed timelines.
Where qualifying land remains undeveloped, the proposed annual fee would be calculated at 2% of the plot’s fair market value.
The draft framework also provides for limited exemptions or extensions where development is delayed by circumstances beyond the landowner’s control.
These could include infrastructure, legal or administrative constraints that prevent construction from moving ahead within the prescribed timeframe.
ADGM said the proposed regulations are intended to encourage timely development, promote more efficient land utilisation and support the wider growth of Abu Dhabi’s commercial real estate ecosystem.
The rules would be particularly relevant to developers, owners of vacant commercial plots and organisations operating within ADGM.
The Registration Authority has opened the proposed regulations for public feedback, with the consultation period scheduled to close on 4 October 2026.
The proposal comes as Abu Dhabi continues to expand its commercial real estate base alongside growth in financial services, technology and other knowledge-driven industries.
If implemented, the framework would introduce a direct financial incentive for landowners to move eligible commercial plots from holding status into active development, while allowing flexibility where genuine development constraints remain.
Source: Abu Dhabi Global Market Registration Authority, Consultation Paper No. 3 of 2026, September 2026.
