RAK introduces new real estate development law, effective September 2026

Ras Al Khaimah's new Law No. 10 of 2026 replaces the previous real estate development framework, taking effect 60 days from issuance (21 July 2026). The law applies to projects across RAK, including Economic Zones, and covers off-plan sales, escrow accounts, purchaser defaults, developer arrangements, and project financing.

Key changes include: consolidated regulatory oversight now handled by a single department (previously split between the Real Estate Project Development Committee and Real Estate Regulatory Administration); new registration requirements for marketing agreements with brokers and sub-developer contracts; expanded grounds for developer removal from the register, including forged documents and inaccurate financial disclosures.

For existing off-plan contracts, Article 20 establishes a new default procedure: developers must notify the regulatory department, which verifies the default and project completion percentage. Purchasers have 30 days to cure. Permitted deductions from unit price depend on completion level (40% if 60%+ complete, 25% if below 60%, 20% if construction not started). This applies to all off-plan agreements concluded before or after the law's entry into force, except for projects with Completion Certificates.

Escrow withdrawals are now narrowed to construction costs and department-approved project necessities; previous provisions permitting marketing expenditure and profit distributions are not repeated. Developers must still contribute 20% of construction costs, and the escrow trustee must retain 5% of total costs for one year post-completion, subject to early release against bank guarantee.

Developers with active projects should review purchaser-default procedures, escrow and financing arrangements, main developer and sub-developer documentation, unit area provisions, and change-approval processes before the law takes effect.